A CFA degree is considered to be one of the most sought-after and rigorous qualifications that an individual in finance can ever gain. Gaining a CFA qualification is a tremendous achievement, and many individuals who have achieved it have had successful careers while reaping the financial rewards of working in finance. The question remains: does a CFA certification by itself guarantee a high-paying career?
First, let us dig a little deeper into what a CFA course is and know what it comprises. CFA stands for Chartered Financial Analyst, which is a professional designation awarded by the CFA Institute. The CFA program is divided into three levels, and one needs to pass all three to earn this particular designation. It covers all of the topics involved in the investment management process, including ethics, economics, financial reporting and analysis, portfolio management, and lots of other topics.
However, the CFA program is infamous for its rigorous exams and low pass rates. The CFA pass rates have been anywhere from 40-50% at each level. A CFA qualification does indeed look like a great achievement, but it does not necessarily promise a high-salary job. Notable aspects to know about the earning potential of having a CFA designation are:
First, one should note the fact that CFA designation only does not guarantee a lucrative career. It is indeed true that most professionals holding the CFA designation do command handsome salaries; however, many other factors at work determine the success of a finance professional. Such factors could be work experience, industry knowledge, networking skills, and many more.
On the other hand, it’s equally important to consider the industry and job market you are operating in. While a CFA designation might be extremely important in one sector of industries within the finance industry, it can be less important in other industries. For instance, a CFA designation might be more highly valued in investment banking or asset management, yet less so in corporate finance or accounting. Additionally, the job market in the geographic location can affect the salary. For instance, CFA salaries in India may be different from those in the United States or Europe.
Thirdly, consider the level of competition for the job you are trying to apply for. Finance is a highly competitive field. One CFA Qualification may not suffice to separate an applicant from others who have undergone various work and internship experiences plus the qualification, therefore having an edge or influence on getting a high-paying job.
However, it is a sure-shot way of increasing your income in the finance sector. According to a survey conducted by the CFA Institute, the median annual salary for CFA charterholders in India stood at INR 23,54,000 in 2020. This is much more than the median salary of finance professionals not holding any CFA qualification.
Moreover, the CFA qualification acts as a ticket to new career opportunities and channels. Professionals holding a CFA designation often end up working in investment banking, asset management, private equity, and other sectors of the finance industry in high-level positions.
CFA Career Opportunities
The following are some of the CFA career opportunities:
Investment Banking: CFA Charterholders advise companies on mergers, acquisitions, and raising capital. They help the business make appropriate strategic financial decisions on the execution of complex deals.
Portfolio Management: Diversifying investment portfolios to balance risk and returns for clients. They take care of asset allocation and monitor the changing markets to maximise wealth over time.
Financial Analysis: This involves the analysis of the economic data in assessing the company’s performance, predicting trends as well as availing critical insight to decision-making. Financial analysts enable organisations to make progress in enhancing financial efficiency.
Wealth Management: The wealth manager is close to the high-net-worth client and could design customised financial plans. Here, a wealth manager focuses on investment strategy, tax optimisation, and long-term wealth preservation.
Equity research: Carry out an intensive study of stocks and companies as suggestions for investment. They are the researchers who help investors make the right choices about equity through forecasting market trends and the behaviour of equities.
To know more about CFA and everything the course entails, read our blog What is CFA? Exam Dates 2023, Course Details, Full Form, Exam Pattern, Fees, Syllabus.
Conclusion
In conclusion, while receiving a CFA designation can be an impressive achievement, it is not a guarantee of high earnings in the finance industry. Other factors, such as work experience, industry knowledge, networking abilities, and competition in the job market, may come into play to determine your potential earnings. Nonetheless, acquiring a CFA qualification could help an individual stand out in today’s competitive job market and add new opportunities as well as career paths in life.
FAQs
Is CFA a high-paying job?
Yes, CFA professionals are in great demand and can command good salaries, especially for finance and investment banking or portfolio management roles.
Can CFA earn in crores?
Packages in crores are possible with experience and senior ranks, especially in global markets or big organisations.
How much is a CFA level 1 salary?
The average salary of CFA Level 1 candidates in India ranges between ₹6 to ₹9 lakhs per annum, depending upon the role and company.
Is CFA valued in India?
Absolutely! The CFA designation is highly valued in India and can unlock roles in investment management, financial analysis, and much more.
