Sounak Banerjee Associate Content Manager
Associate Content Manager
CFA is a very popular option in the field of finance globally, but CA is more in demand in India. Students become auditors of MNCs after completing CA, whereas students after completing CFA deal with investment banking.
Chartered Financial Analyst (CFA) is a broad area of research that focuses on equipping the enrolled students with investment and financial management expertise and knowledge. The CFA program is a training program that prepares the students to understand the financial implications of activities related to business and finance.
A Chartered Accountant (CA) is a globally recognized profession that allows the students to practice in all areas of industry and finance, including accounting, auditing, and general management. The government agencies, as well as public and private sector businesses, hire CAs. In a nutshell, professional accountants are still high in demand across all sectors. To become a certified CA, applicants must pass various stages of examination and go through a rigorous training program.
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CA Vs CFA
| Perimeter | CA | CFA |
|---|---|---|
| Focus | CA is treated as an expert in the field of accounting, taxation, law, audit, and finance. | CFA has a core focus in the field of finance. |
| Area | CA is an Indian Recognized course organized by ICAI | The CFA course is globally recognized and organized by the CFA Institute. |
| Duration | The duration of this course basically spans to 3-5 years including an article ship Period of 3 years. | The CFA course takes at least 2 years or more to be completed. |
| Average pass percentage | CA is considered the toughest course throughout the world with an average passing percentage of 0.5%. | The passing percentage of CFA is much higher as compared to CA. The average pass percentage seems to be 10%. |
| Pattern | The course is divided into three levels which are Level I, Level II and Level III | The course is divided into three levels which are Common Proficiency Test (CPT), Integrated Professional Competence Course (IPCC) and CA Final. |
| Exam Pattern | Subjective Based Exam | Objective-Based Exam |
| Subjects | There are 20 Subjects in 3 Groups in total. | There are a total of 10 subjects which keeps repeating in all the 3 levels. |
| Key Focus of Work | Accounting, Finance and Taxation Advisory, Auditing | Wealth Analysis and Investment |
| Difficulty Level | The CA program is quite hard as the pass rate is approximately 20% and it takes at least 4 years to complete. | 43% pass rate for Level I |
| Demand | The demand for CA’s is higher because they are only authorized to audit the financial statements of the national and multinational companies. | CFA is demanded by many multinational and national companies looking for a person to be an expert in finance and handle their investments. |
| Fees | INR 1,00,000 (approx.) | INR 3,00,000 to 4,00,000 (approx.) |
| Career Options | Internal Auditing, Taxation, Auditing, Accounting and Finance, Taxation Advisory, Statutory Audit, Bookkeeping, Finance Controller etc. | Portfolio manager, Research & Consultation, Risk Analysis and Risk Manager, Investment Strategy, Chief Investment Officer, Asset Management, Private Wealth Management, Commercial Banking, Investment Banking, Insurance etc. |
| Future Aspects | The CA program has always been a futuristic course as accounting is an integral part of all Financial Operations. | The CFA program is continuously being upgraded and always stays compatible with the changing environment. It is future friendly. |
| Average Annual Salary | INR 6,00,000 to 25,00,000 per annum | INR 17,00,000 per annum |
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CFA and CA: Eligibility Criteria
Eligibility criteria for both the courses differ in a way that CFA requires work experience whereas CA doesn’t require any work experience at the industry level. Candidates can also choose CFA or CA based on the experience level.
The candidates who are interested in pursuing CFA or CA program must meet the eligibility requirements. The below are the eligibility criteria for the CFA and CA programs:
| CFA Eligibility | CA Eligibility |
|---|---|
| The candidate must have a Bachelor's degree or similar from a recognized institution in either discipline with a minimum 55% aggregate. | Students must have received a minimum of 50% in their 10+2 from a recognized institute and board. |
| Candidates who are in their final year of a bachelor's degree program at the time of admission are eligible to qualify for the CFA program. | Students must take the course's mandatory entrance exams, such as the CPT. |
| Candidates must have a minimum of four years of work experience. | There is no upper age limit for enrolling in the CA program. |
Which is better as a career option CFA or CA?
CFA is a course of 4 years which requires relevant work experience that is accepted by the CFA Institute. Candidates have to go through the entire CFA course syllabus and must clear an examination of 6 hours. Once the CFA exams are over, the shortlisted candidates can apply for CFA membership from the institute and can register with the local CFA society.
CA candidates have to study for around 4.5 years and have to complete 3 levels to become a certified Chartered Accountant. Students can enroll in the CA programs after class 12th or after their graduation as well. To become a CA, candidates have to go for the article ship training. CA courses have flexible job opportunities for the candidates.
Candidates with the background of CA have a high demand in the finance and manufacturing sectors and the candidates with the background of CFA have a high demand in the investment sectors.
Therefore, both the programs CFA and CA are equally better for the career options for the students. It’s up to the students which course they go for.
CFA vs CA: Job Opportunities
In today's market, there are many career openings for CA as well as for CFA professionals. In the finance and manufacturing industries, candidates with CA experience are very high in demand. Candidates with CFA experience are still in high demand in the investment sector. As a result, both the CA and CFA programs are similarly beneficial to candidates' job prospects.
| How to become an Audit manager? | How to become a payroll administrator? | How to become a Revenue Manager |
Job opportunities available for CA and CFA are as follow:
| CA Job Roles | CFA Job Roles |
|---|---|
| Business Services Accountant Auditor Accounts Clerk Cost Accountants Chief Financial Officer Tax Accountant Financial Controller |
Research Consulting Investment strategy Private wealth management Investment banking Commercial banking |
CFA vs CA: Average Salary
The average annual salary of CA and CFA in India varies due to a variety of reasons, but students have some influence over the amount of money they will be paid. The area graduates live in, their background, the job title or specialty they have, and other aspects will also affect their fresher pay scale.
| CA Job Profile | Average Salary (INR) | CFA Job Profiles | Average Salary (INR) |
|---|---|---|---|
| Budget Management | INR 9,50,000 | Research Analyst | INR 7,40,000 |
| Strategic Accounts | INR 9,00,000 | Equity Research Associate | INR 5,20,000 |
| Financial Advisor | INR 8,50,000 | Financial Analyst | INR 6,40,000 |
| Financial Analysis | INR 8,00,000 | Finance Manager | INR 10,00,000 |
| Management Auditing | INR 8,50,000 | Credit Analyst | INR 6,30,000 |
Both courses have a great scope in the future and various career opportunities. You must choose your career path wisely. Opt for a CA course if you have an interest in audit and taxation whereas opt for CFA course if you have an interest in investment banking and portfolio management. To sum up, it is recommended to every candidate who wants to pursue these courses that neither go for CA online classes nor for CFA online classes. Join the renowned institute where you can get all your queries answered face to face.
CA vs. CFA: FAQs
Ques. Can CFA and MBA be done together?
Ans. Yes. It is allowed to do both CA and CFA together but it is quite hard to manage as both the courses include article ship period.
Ques. Which one is more preferable for Investment Banking, CA or CFA?
Ans. Whenever it comes about investment, CFA always takes a lead, as the CFA course is designed to have key focus on investment and wealth management.
Ques. Can a CA student opt for CFA?
Ans. Yes, students pursuing CA program can opt for CFA program.
Ques. What is the main focus of CA and CFA?
Ans. The CA mainly focus on to do an audit, accounting taxation, and finance. On the other hand, the main focus of CFA is core finance and is completely based on the concepts of formulas rather than learning.
Ques. Is it worth doing CFA after CA?
Ans. Yes, it is worth doing CFA course after a CA course. If you become a CA, then it wouldn’t be that much difficult to clear first level of CFA. CA and CFA both are finance-related topics. Many CA candidates do CFA course to make their career in Investment Finance. A candidate who has done both CA and CFA courses get all-around knowledge and also the global recognition.
Ques. What is the future scope of CA?
Ans. The future scope of CA program is that the candidate can make their client by starting their own independent business based on the merit. A qualified Chartered Accountant is eligible to apply for a government and private job. If they want, they can also join a firm and provide services of the capital market.
Ques. When should you start the study of CA final after completing IPCC?
Ans. Once you clear your IPCC examibnation, you should immediately start the preparation for the CA Final. Do not waste a single day as clearing CA requires time and lots of dedication. Although, it will take a little time to understand the acquaintance with the subjects.
Ques. What is the career path for a CFA candidate?
Ans. The career path available for CFA candidates are consulting, research, investment strategy, portfolio management, risk analysis, and risk management.
Ques. Is CFA better than CA?
Ans. CA is beneficial for those people who want to make their career in the field of taxation and audit whereas CFA is beneficial for those people who want to go into Portfolio Management and Investment Banking sector. Both courses have their own recognition. The scope of CA and CFA courses is increasing rapidly. Choose your career wisely as per your interest and ability.
Ques. How to Study for CA IPCC exams?
Ans. Make daily targets and fulfill them, revise the previously taught part and then begin with a new topic, increase your study hours during weekends, make effective use of the internet to know the appropriate information.
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