Introduction
The Chartered Financial Analyst (CFA) charter is one of the most esteemed designations in the finance world. It’s a stepping stone to top-tier CFA careers in investment banking, asset management, risk analysis, and beyond. But what can a CFA charter really do for your career development?
The CFA certification is recognised globally and hence a highly desirable title among students and learners wishing to make it big in the world of finance. With over 190,000 CFA charterholders worldwide, the certificate has emerged as an investment of professional gold standard.
As per the CFA Institute, the certification results in a 192% average income increase for CFA charterholders compared to non-certified professionals, attesting to its value in career development.
Here we will talk about career prospects for CFA charterholders, industry demand, compensation, and comparison of CFA with other certifications like FRM.
Why Are CFA Jobs In High Demand?
The financial industry is rapidly evolving, and firms need sophisticated analytical professionals. CFA charterholders are desired because they have expertise in investment analysis, risk management, and financial decision-making.
CFA Industry Demand
If you’re considering which sectors employ CFA charterholders actively, here’s the list:
- Investment Banking
- Asset Management
- Private Equity
- Hedge Funds
- Risk Management
- Financial Planning & Consulting
- Corporate Finance
- Wealth Management
These industries seek experienced professionals with sound financial expertise, and CFA charterholders are exactly the ones. Since finance is a component of nearly all business industries, CFA professionals also have opportunities in technology, real estate, healthcare, and even government organizations that require financial experts.
CFA vs FRM Careers: Which Provides More Career Development?
FRM and CFA qualifications are both worth acquiring but are more appropriate for other career paths.
| Aspect | CFA Qualification | FRM Qualification |
| Specialisation | Investment & Portfolio Management | Risk Management |
| Sectors | Investment Banking, Asset Management | Banks, Risk Management Firms |
| Salary Level | £75,000 – £100,000 | £65,000 – £90,000 |
| Time to Finish | 2-3 Years | 1-2 Years |
If you want to be an investment banker or a portfolio manager, CFA is the preferable one. If you want to become a risk measurement and management professional, FRM would be preferable. Some opt for both certifications for career adaptability.
Most Popular CFA Job Titles You Can Pursue
CFA certification gives professionals various job titles such as:
1. Investment Banker
CFA charterholders investment banking professionals help companies raise capital and lead mergers and acquisitions. The job requires advanced financial modeling and valuation.
2. Portfolio Manager
Portfolio managers oversee investment strategies to generate the highest returns on customers’ money. They invest after extensive research and analysis.
3. Financial Analyst
Financial analysts analyze financial data and provide investment recommendations. They work in banks, asset management firms, and hedge funds.
4. Risk Manager
Risk managers use models of data to minimise financial risks. They communicate with financial institutions to ensure stability and compliance.
5. Equity Research Analyst
Equity analysts examine stocks and investment opportunities for clients. They provide insightful advice for investors and portfolio managers.
CFA Job Salary: How Much Can You Earn?
One of the strongest draws of CFA certification is the potential salary. The average CFA charterholder enjoys a 192% increase in salary compared to non-certified staff.
The following is a rough estimate salary based on the job role in CFA:
| CFA Job Role | Average Salary (GBP) |
| Investment Banker | £90,000 – £150,000 |
| Portfolio Manager | £80,000 – £130,000 |
| Financial Analyst | £65,000 – £100,000 |
| Risk Manager | £75,000 – £120,000 |
| Equity Research Analyst | £70,000 – £110,000 |
Note: Salaries will differ with experience and location.
Apart from salary, CFA charterholders have better job security and career progression, which offset the cost of certifying.
FAQs On CFA Careers
1. Is CFA worthwhile for career advancement?
Yes. The CFA charter is very highly regarded and leads to well-paying finance careers.
2. How long does it take to finish the CFA certification?
It will take around 2 years to complete all three levels of CFA.
3. Do MBA graduates earn more than CFA charterholders?
CFA charterholders working in finance usually have better salaries than MBA graduates.
4. Where is demand for CFA employment the greatest?
USA, UK, Canada, UAE and Singapore experience the greatest demand for CFA charterholders.
5. Are CFA charterholders employable in FinTech?
Yes, investment technology and risk analysis roles in FinTech companies increasingly hire CFA charterholders.
6. What is the CFA exam pass rate?
Average CFA exam pass rates are 65% for Level 1 and 85% for Level 3.
7. Is there a job opportunity for new CFA Level 1 candidates?
Yes, there are jobs for research associate and junior analyst available to CFA Level 1 candidates.
8. Do I require experience to work in a CFA position?
Most of the lucrative CFA positions require 3-5 years of experience.
9. Who employs CFA charterholders?
The best companies employing CFA charterholders are JP Morgan, Goldman Sachs, Morgan Stanley, HSBC, and BlackRock.
Conclusion & Key Takeaways
CFA certification is a career changer in finance. It offers career growth, excellent compensation, and global recognition.
Key Takeaways:
- CFA professionals enjoy high compensation and security of employment in the financial industry.
- The certification is highly regarded and valued around the world.
- CFA charterholders are employed in investment banking, asset management, and risk quantification.
Thinking of pursuing CFA? Enrol now and embark on your path to success.
Being financially successful and having a successful career in finance can be achieved through the right skills and CFA certification.