How to Become a CFA in India: Salary, Career Scope, Roles and Process 

CFA (Chartered Financial Analyst) is a professionally recognized course for investment professionals worldwide. It is offered by the CFA Institute in financial management, and investing is provided by the CFA Institute. The CFA course is considered the most prestigious and well-known designation in finance and investment management worldwide. Hence, if you are passionate about being a professional in investment management and ready to give enough time and effort to go higher, the CFA program can be an option for you.

To help you navigate the CFA course in India, we will walk you through the stepwise process to earn a CFA certification with helpful guidance and the tools you need to begin your journey.

Before we talk about the process of becoming a CFA, have a quick look at the basic details of a CFA and the key roles and responsibilities of a CFA. 

What is CFA?

A certified financial analyst, or CFA, is a professional who has obtained the certification offered by the global non-profit professional association CFA Institute. Because of its emphasis on ethics, knowledge of investments, and analysis, the CFA designation is acknowledged as the top credential for investment professionals worldwide.

 CFA Roles and Responsibilities

A CFA manages portfolios and provides investment advice to individuals, companies, and other organizations. These specialists get jobs at reputed banks, universities, insurance companies, broker-dealers, pension funds, and institutional investing firms.

Only financial professionals who have fulfilled the CFA Institute’s qualifications are approved for the CFA certification.

Career scope and CFA salary in India

A Level 1 passed candidate’s annual compensation as a chartered financial analyst is approximately INR 4.2 lakh, whereas a Level 2 successful candidate makes approximately INR 6 lakh. The level 3 cleared applicant earns an annual salary of INR 10 lakh. 

CFA has great work options outside of India. You can apply for jobs overseas once you have obtained your CFA charter. For a holder of a CFA Charter, there are numerous career prospects available in numerous nations. Among the positions for which CFAs are hired are those of credit analyst, corporate financial analyst, and research analyst.

How to Become a CFA: A Step-Way Process 

Step 1: Sign up for the CFA course.

You must enroll in the CFA program before enrolling for the Level I exam to become a CFA candidate. You must meet any of the following conditions to participate in the CFA program in India:

• Hold an undergraduate degree.
• At Least in the third year of a bachelor’s program

• Should have at least four years of higher education degree and four years of full-time work experience.

• Candidates also need to meet the professional conduct admission requirements, be able to take the exam in English,
• Have an international travel passport, 
• Reside in participating countries.

Step 2: Pass the CFA examinations.

To become a CFA, you need to pass each of the three CFA exam levels. Ethical and professional standards, economics, equity investments, fixed income, and portfolio management are among the major topics covered in these exams. Every exam focuses on a different facet of investing:

• Level I: Looks at your understanding of professional and ethical norms while focusing on investment instruments.
• Level II: Asset valuation is the main focus, and it assesses your ability to apply standards to scenarios that analysts encounter.
• Level III: This level focuses on portfolio management and assesses your application of compliance and portfolio management standards.

You can get the CFA charter after passing the CFA exams. These are difficult exams and require a significant time commitment. Some professionals find focused study to be a more effective approach, yet some can study for the exam while working in the field. 

The average candidate, according to the CFA Institute, studies for each exam for 322 hours on average—304 hours for Level I, 329 hours for Level II, and 334 hours for Level III.

Step 3: Get relevant job experience.

You can obtain 48 months of “acceptable work experience” before, during, or after the exam to move closer to becoming a CFA charter holder. The CFA Institute accepts a wide range of financial and investment experience, including experience in trading, economics, and corporate finance.

However, this work experience needs to entail at least 50% of the decision-making process for an investment or the creation of a product that influences it.

Step 4: Send in letters of recommendation

Present and send the reference letters to the CFA Institute once you have completed the required work experience and passed all three exams. These references should support your eligibility for a charter by vouching for your skills and integrity as a professional. References from current CFA charterholders or supervisors will have greater weight than others.

Step 5: Apply to become a charterholder

After fulfilling all prerequisites, you can apply to become a CFA charterholder. For review, you must submit your prerequisites and payment. Applications for regular membership may be reviewed by the CFA Institute in up to 10 business days, while applications for affiliate membership may be reviewed in up to 4 weeks. Following the examination of their application, candidates will receive an email. You become an official CFA charterholder upon approval.

Is CFA the Right Career option?

CFA is a rewarding career, both financially and in terms of work experience. There are a lot of CFA job vacancies each year. In the past seven years, the position of CFA has increased by almost 30% in India. There is no doubt that this field has a lot of potential for the future. We hope you now have all the information you need to become a CFA in India, and we wish you well in your future endeavors. If you are looking for the best CFA course in India, Mirchawala’s Hub of Accountancy can be your one-stop destination.