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CFA Vs FRM which is better in 2024?

January 15, 2024 - 10:31
CFA Vs FRM which is better in 2024?

CFA Full form 

 CFA  stands for Chartered Financial Analyst ,which is a   designation offered by the CFA Institute.This a professional credential for  finance and investment professionals.  CFA charter can be achieved by passing a series of  exams, meeting  certain work experiences, and adhering to a code of ethics. 

FRM Full form

FRM stands for Financial Risk Manager. The FRM is a professional certification awarded by the Global Association of Risk Professionals (GARP) to individuals who demonstrate expertise in the field of financial risk management. This is recognized in the finance industry and is often pursued by professionals working in risk management, investment management.

Eligibility Criteria for FRM vs. CFA: A Comprehensive Guide

Choosing between the FRM and CFA certifications can be a tough decision. Both are prestigious qualifications in the finance industry, but they cater to different career paths. This guide will compare the eligibility criteria for both programs to help you make an informed decision.

Educational Background:

FRM: Bachelor’s degree in any field from an accredited university.

CFA: Bachelor’s degree in finance or a related field preferred, but not mandatory.

Work Experience:

FRM: Two years of full-time relevant work experience in financial risk management or a closely related field.

CFA: Four years of qualified work experience in investment analysis or a related field. Master’s degree can substitute for one year of experience.

Exams:

FRM: Two rigorous multiple-choice exams (FRM Part I and Part II).

CFA: Three levels of exams, each covering a different area of investment analysis.

Additional Requirements:

FRM: Adherence to GARP’s Code of Professional Conduct.

CFA: Commitment to upholding the CFA Institute Code of Ethics and Standards of Professional Conduct.

Key Differences:

Focus: FRM focuses on risk management, while CFA focuses on investment analysis and portfolio management.

Work Experience: FRM requires less work experience than CFA, making it a good option for early-career professionals.

Exams: FRM exams are shorter and more focused than CFA exams, but they are still challenging.

Which is right for you?

Choose FRM if:

You’re interested in risk management.

You have a bachelor’s degree in any field.

You have two years of relevant work experience.

Choose CFA if:

You’re interested in investment analysis and portfolio management.

You have a bachelor’s degree in finance or a related field.

You have four years of relevant work experience

FRM Vs CFA

Full form

Financial Risk Manager

Chartered Financial Analyst

Awarding body

Global Association of Risk Professionals (GARP)

CFA Institute

Focus area

Risk management in financial organisations

Investment management and financial analysis

Exam levels

Two

Three

Career opportunities

Risk analyst, risk manager, credit risk specialist, market risk specialist, etc.

Financial analyst, portfolio manager, investment banker, equity researcher, etc.

Exam pattern

Multiple-choice for both Part I and Part II

Multiple-choice for Levels I and II; written and multiple-choice for Level III

Exam duration

4 hours for each part

4.5 hours for each level

Exam frequency

Twice a year (May and November)

Twice a year (June and December) for Levels I and II; once a year (June) for Level III

Exam fees

$1,050-$1,500 for Part I; $550-$750 for Part II

$700-$1,450 for each level

Work experience

2 years in a financial risk role

4 years in a relevant investment role

 

Key Takeaway

Navigating through the  complex world of finance in India requires careful consideration of your career in the form of  aspirations and skillset. Both the FRM and CFA programs offer prestigious designations across the world.

In order to  mitigate financial uncertainties, the FRM serves as a best option. It focuses on risk management that  aligns perfectly with India’s growing emphasis on financial stability and regulatory compliance. FRM graduates  can become experts in  diverse areas like credit risk, market risk, and operational risk.

On the other hand, the CFA program appeals to investment enthusiasts seeking  portfolio management and asset valuation. CFA graduates make exciting prospects in the Indian securities market . CFA charterholders stand out with their holistic understanding of financial analysis.This makes them sought-after by investment banks soon after they graduate .They are also hired by wealth management firms as well as  asset management companies.

Comparing the career and future prospects of these two niche of courses it is of certain surety that one reaches the epitome of their career aspirations with the best of the courses that suits the skill of individual.Ultimately, the “better” program boils down to your individual goals and strengths.It is completely the choice of a career orientated individual as to what course he or she should take up and learn in order to behold the career aspired.

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