CA vs CFA: Which Finance Certification is Right for You?

WHAT IS CA?

The Chartered Accountancy course is authorised by the Institute of Chartered Accountants of India (ICAI). It is an esteemed course equipping learners with expertise in accounting, auditing, taxation, and general management. Chartered Accountants can work in varied sectors and are the only professionals authorized to audit financial statements.

CA COURSE SYLLABUS, EXAM, AND DURATION

The CA course curriculum is structured into three stages- Foundation, Intermediate, and Final. Besides theoretical knowledge, practical training through articleship is an essential part of the course, providing hands-on experience. 

Through direct entry, without giving the CA Foundation exam, one can register for the CA Intermediate course. To be eligible for registering through the direct entry route, one should graduate from any stream with specified marks (minimum of 55% marks in graduation or post-graduation if you have a commerce degree, or a minimum of 60% marks if you have a non-commerce degree).

The foundation course covers four subjects: Principles and Practice of Accounting, Business Mathematics and Logical Reasoning, Statistics, and Business Economics and Business and Commercial Knowledge. 

The CA Intermediate syllabus is divided into two groups, each comprising three subjects. Group 1 includes: Advanced Accounting, Corporate and other Laws & Taxation. Group 2 includes: Cost and Management Accounting, Auditing and Ethics & Financial and Strategic Management.

The CA Final level is divided into two groups, with three papers in each group. First Group consists of Financial Reporting, Advanced Financial Management & Advanced Auditing. The Second Group consists of Direct Tax Laws, Indirect Tax Laws & Integrated Business Solutions.

The foundation level & intermediate level exams are held thrice a year, and the Final level exams are held twice a year. Results are announced about two months after the exam. Students must pass individual papers by scoring a minimum of 40% & obtain 50% in aggregate to clear the exam.

The minimum duration to complete the course after 10+2 is 4.5 years, and for direct entry, the minimum duration is 3 years.

CA COURSE FEES

CA course fees, including Foundation, Intermediate, and Final levels, are approximately ₹3-4 lakhs. 

CA JOB ROLES & SALARY

Chartered Accountants (CAs) have diverse career opportunities across various sectors, including public accounting firms, industry and commerce, government, consulting, investment banking, taxation, audit, financial planning, academia, and entrepreneurship. CAs can specialize in areas like insolvency and restructuring, forensic accounting, international taxation, corporate finance, risk management, and more. With their expertise, CAs can work in a range of roles, from financial controller to CFO, and can also start their businesses or venture into other industries.

The average salary for a fresh Chartered Accountant (CA) ranges from ₹4.5 lakh to ₹6 lakh per annum, while experienced CAs can earn up to ₹23 lakh per annum in Big 4 firms and ₹18-25 lakh per annum in top MNCs. In IT companies, fresh CAs can earn ₹8-10 lakh per annum, while experienced ones can earn ₹40-60 lakh per annum.

WHAT IS CFA?

The Chartered Financial Analyst (CFA) designation is a globally recognized professional certification awarded by the CFA Institute. The CFA Institute evaluates and recognizes financial analysts' knowledge and ethical standards. The CFA program provides a comprehensive understanding of finance, including investment analysis, corporate finance, and portfolio management. Upon completion, candidates become CFA charter-holders and can pursue careers as investment bankers, portfolio managers, equity research analysts, or risk managers. The CFA designation opens up various job opportunities in the finance industry worldwide.

CFA COURSE SYLLABUS, EXAM, AND DURATION

The CFA eligibility criteria to become a CFA Charter-Holder are to obtain a bachelor's degree or to be in the final year of the bachelor's program, have 4,000 hours or over a minimum of 3 years of relevant professional experience.

The core of the CFA program is a series of three challenging exams:

CFA Level 1: This is the foundational level, covering a broad range of topics in finance, including ethics, financial reporting and analysis, economics, quantitative methods, portfolio management, and equity investments.

CFA Level 2: Builds upon Level 1, delving deeper into equity investments, fixed-income securities, derivatives, alternative investments, and portfolio management.

CFA Level 3: Focuses on portfolio management and wealth planning, emphasizing the ethical and professional responsibilities of investment professionals.

The CFA Level 1 exams are held 4 times a year: February, May, August & November. Level II exams are held thrice a year: May, August & November, and Level III exams are held twice, in February and August. 

The Chartered Financial Analyst (CFA) course usually takes three to four years to complete. The duration depends on how well you prepare and when your exams are scheduled. The recommended study time is 300 hours per level for three levels. 

CFA COURSE FEES

The CFA course fees range between INR 11,000 to INR 3.5 Lakh.

CFA JOB ROLES & SALARY

After one qualifies as a CFA, they can work as a Portfolio Manager, Research Analyst, Consultant, Risk Manager, Chief Investment Officer, Asset Management, Private Wealth Management, Investment Banking, etc.

The salary of a Certified Financial Analyst (CFA) in India varies based on experience, job role, and other factors. In terms of experience, entry-level CFAs (0-3 years) can expect a salary range of ₹5-8 lakh per year. Mid-level professionals (4-7 years) typically earn between ₹12-18 lakh per year, while senior-level CFAs (8+ years) can command salaries ranging from ₹25-40 lakh per year.

CONCLUSION

Both Chartered Accountant (CA) and Chartered Financial Analyst (CFA) are prestigious certifications in the finance industry. While CA focuses on accounting, taxation, and auditing, CFA emphasizes investment analysis, portfolio management, and financial planning. The choice between CA and CFA depends on individual career goals and interests.