CA and CFA: Key differences between the two
What's the story
Over the past few years, there has been an increase in demand for finance professionals not only in India but all over the world. In the corporate world, two of the most sought-after professional career options are chartered accounting (CA) and chartered financial analysis (CFA). Here's everything you need to know about these two careers, right from the length of time to the distinctions.
Courses
Eligibility criteria and other details about the programs
The eligibility for the CA course is 10+2 examination (or equivalent) while on the other hand, one needs to be a graduate to pursue the CFA program. The CA course is offered by the Institute of Chartered Accountants of India (ICAI) while the CFA program is offered by the CFA Institute in the US.
Duration
Different stages and levels of CA and CFA programs
The CA course is divided into three stages: the Common Proficiency Test or CPT, Intermediate Course or IPCC, and the Final course. After Class 12, the minimum duration of the CA course is four-and-a-half years. To become a CFA, too, one must clear three levels: Level 1, Level 2, and Level 3. The minimum duration of the course is 4 years after graduation.
Information
Passing percentage of CA and CFA
CA is considered one of the most difficult programs in the world and qualifying in the CA Final exam is very tough. The average passing percentage of CA is 0.5%. The passing percentage of CFA at 10% is comparatively higher than CA's.
Differences
Differences, certification, salaries of CA and CFA
While CA deals with accounting, taxation, law, audit, and finance, CFA focuses on finance, investment, wealth management, stock market, portfolio analysis, etc. CFA certification is valid globally, but CA certification isn't considered in all countries. Coming to the salary, a fresher CA can make around Rs. 6 lakh a year while a fresher CFA in India can earn Rs. 4.5-5 lakh per annum.