Are you one of the commerce graduates, standing in a position to choose a career path between Chartered Accountant and Chartered Financial Analysts (CA vs CFA)? The CA and CFA are two diverse fields in the finance sector but always confuse people. So here we are with the difference between the two. CA Wizard can define your career in Commerce through its complete CA Coaching.
CA or Chartered Accounting deals with accounts, ledger, taxes, and auditing. Every business small or large needs a CA to handle taxes. While CFA or Certified Financial Analyst focuses on investments, portfolios, corporate finance, equity investment, derivatives, etc. Looking forward to pursuing unique careers after the 12th, this can be your calling.
The career options of CA include budgeting, accounting & auditing, and management accounting. While CFA has a much more diverse career path in investment banking, research, Portfolio Management. So now choosing which career to move forward with might be difficult for you. Of Course, your entire career depends on it. You should also know none of these two careers are anyway an easy path. Below is a proper explanation of the two careers.
Also, download the CA Intermediate Paper with Answers.
CFA – Certified Financial Analysts
CFA or Certified Financial Analysts is a global degree and has quite a demand in the financial sector. The top employers include the most respected financial corporations globally, e.g., JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo. The main profile of CFA is investment and wealth management.
CFA has three exams, and overall includes four years of dedication. It is an entirely practical course involving work experience and internships. The main focus while recruiting financial analysts is on knowledge and skill. Only those who have completed all three exams can be a CFA by designation.
The designation of CFA involves few compulsory factors. These are four years of work experience, 300+ study hours, and six months of preparation for each exam. Since CFA focus on giving conceptual understanding, therefore only concept based questions are asked in the examination. So do you have an interest in finance and more than that wish to work with the giants of financial sector. CFA could be your ticket to success.
Also Check, CMA Salary in India
CA- Chartered Accountant
CA is one of the popular courses in India, as half of the commerce graduates go for CA foundation(CPT) i.e. Chartered Accountant entrance exam. The ICAI (Institute of Chartered Accountants of India) regulates chartered Accountancy course in India. CA is also on the list of the top 10 desirable professions in India. The job profile of CA revolves around accounting, auditing, budgeting, and taxes. CA is always huge in demand due to its requirement in almost all the businesses. CA’s is the only persons in India who has the authority to audit the Financial Statements of an organization. A financial statement needs auditing every year.
CA can have employment opportunities by government bodies, public and private sector companies as well. CA’s are always in demand. They have to go through a rigorous process of training and difficult levels of examination, to qualify as CA in India. Which you can easily do through CA Wizard’s CA Coaching classes
Both CA and CFA are demanding and works in the Financial field. While being a CA you can get a job anywhere and CFA gets recruitment in major financial institutions only. Now let us see a proper CA vs CFA analysis. Hence, CA after graduation is a good choice.
Also, Read – How to Become CA
Difference between CA and CFA
Let’s discuss some difference between CA and CFA and also see which is better from your perspective –
CA vs CFA
| Base | CA | CFA |
|---|---|---|
| Focus | CA is treated as an expert in Accounting, Taxation, Law, Audit, as well as Finance. | CFA has a core focus on Finance. |
| Area | CA is an Indian Recognised course organized by ICAI | CFA is a globally recognized course organized by the CFA Institute. |
| Duration of the Course | CA is divided into three levels along with 3 years of Practical Training which then requires a minimum of 4.5 years after 12th. | CFA course duration is also divided into three levels, along with 4 years of practical training experience, which requires a minimum of 4 years after graduation. |
| Pass Percentage | CA is considered the toughest course throughout the world with an average passing percentage of 0.5%. Moreover, it has been believed that only 5 out of 1000 entrants can qualify for the CA Final exam. | The passing percentage of CFA is higher than compared to CA. The avg. Pass percentage seems to be 10% which means 100 students are able to qualify for this exam out of 1000 entrants into the course. |
| Demand | Definitely, the demand for CAs is higher because they are only allowed to audit the Financial Statements of the company. Hence, making them high in demand. | Many national as well as multinational companies looking for a CFA candidate to be an expert in finance demand and consequently handle their investments. |
| Paper Pattern | CA is a subjective paper-based pattern. Hence, forget about the luck factor. | CFA is an MCQ based paper pattern that involves a little luck factor in getting clear this exam. |
| Exam Pattern | Here the CA students get benefited because the papers are spread over 16 days having 1-day preparation leave in each paper. | CFA is really difficult to prepare during exam time because here students are required to prepare all the 10 subjects in one day consequently. |
| CA Salary in India | The average package of a fresher CA ranges between 6-7 lakhs which increases depending on your work. | The average earnings of a fresher CFA salary are estimated up to 4 Lakhs, which increases with your experience and ability. |
Read Also: About CA Salary in India
Why Pursue the CFA® Designation?
By giving the apparent differences above we hope you are able to decide which is the profession you should go for. In addition, below are some points you can consider if you wish to pursue CFA as a profession.
- Real-world expertise
- Career recognition
- Ethical grounding
- Global community
- Employer demand,
The portfolio of CFA itself is vast enough if you are someone having an interest in investments.
More than 245,000 global candidates register for the June 2020 CFA® exams that will take place in 193 cities across 95 different countries. According to a survey, the demand for CFA will soon rise and the pay might also rise by 10-12%.
Why Pursue the CA® Designation?
CA is much more flexible than CFA. It is high in demand and CA can also freelance to building their own clients. You already know the salary of CA varies as per expertise. Like, a student who passed all the exams in one go can easily make a lot of money while those who have given reattempts lacks high-paid jobs. The eligibility of CA is to just complete the 12th standard
CA’s can have their own firms and can manage multiple clients at a period of time. CA has its requirement from manufacturing to the finance sector. So if you want flexibility in your profession and have an entrepreneurial mindset. CA can be your ticket to success. So, if you wish to pursue CA, Join CA Wizard and fulfill our dream into reality.
CA and CFA Together
Nowadays, CA and CFA can happen together as well. Doing CA and CFA together can make your professional career reach greater heights. Furthermore, it will add 2 times the value and skill to your knowledge. With a title of CA and CFA, you will have multiple business opportunities.
Download the CA Final Paper with suggested answers.
Conclusion
Hope you have got an answer to your queries regarding CA vs CFA. Even though both these career options are highly competitive, you can make a successful financial career in both. Furthermore, if you still are unsure about which is better among CA and CFA, you can go with the combination of two. It will give an immense boost to your career and will put you in a higher position as compared to your colleagues.
Commencement of Live Virtual Classes (LVC Batch – 2) under the New Scheme from 15th April 2024 for the students of CA Foundation/Intermediate/Final courses appearing in September/November 2024 Examinations – (10-04-2024)