CA vs CFA – Duration, Difference, Salary, Which is Better?
CA vs CFA, the two most fascinating and demanding professional career options in the corporate world. But students usually ask which is better for them? Well, choosing between good and bad is easy but choosing between good and good is the most difficult task and here is when mainly students get stuck.
Therefore, we have prepared an article which will help you in choosing between CA and CFA – which is better for you?
Well, before starting the battle between both the courses let’s have some understanding about both of them –
CA (Chartered Accountancy) –
Chartered Accountancy is organized by the ICAI (Institute of Chartered Accountants of India). The profession is well reputed in the society and enough to get you a dream job and earn name and fame as well. Chartered Accountants are the highly responsible person in an organization whose work is to forecast, plan and advise the management of the most profitable projects and investments.
As soon as CA is added to your name, you will deem an expert in various domains to say accounting, auditing, taxation, finance, corporate laws etc. Beside above, CA’s are the only authorized persons in India who can audit the Financial Statements of an organization. Without a CA signature, F.S. could not be called as Audited F.S.
Even P.M. Modi Ji himself said that “CA signature is more powerful than P.M. signature”.
The CA Course is structured into three levels CA Foundation, CA Intermediate and CA Final along with three years of Articleship Training which designate that CA studies are beyond bookish knowledge. With the three years of Articleship Training in CA curriculum, here students are made aware of real-world challenges and turned into a true professional.
Know how to Register in Chartered Accountancy.
CFA (Chartered Financial Analyst) –
CFA is organized by the CFA Institute globally recognized course which mainly focuses on the Investment Management. Those who want to grow their career in Finance should go with CFA. CFA is not limited to India only, as this is a globally certified course, therefore the course carries much about global investment management.
CFA course is also divided into three levels and also requires four years of work experience. Which means that CA and CFA, both the courses are based on the practical world challenges. However, one can go with CFA only after completing his graduation.
CFA has a core focus on the Finance and completely based on concepts. Here the examiner test the application of concepts and formulas rather than their learning.
Now, let’s discuss some differences between CA and CFA and also see which is better from your perspective –
|Focus||CA is treated as an expert in Accounting, Taxation, Law, Audit, and Finance.||CFA has a core focus on Finance.|
|Area||CA is an Indian Recognised course organized by ICAI||CFA is a globally recognized course organized by the CFA Institute.|
|Duration of the Course||CA is divided into three levels along with 3 years of Practical Training which requires a minimum of 4.5 years after 12th.||CFA is also divided into three levels along with 4 years of practical training experience which requires minimum 4 years after graduation.|
|Pass Percentage||CA is considered the toughest course throughout the world with an average passing percentage of 0.5%. It has been believed that only 5 out of 1000 entrants are able to qualify CA Final exam.||The passing percentage of CFA is higher as compared to CA. The avg. pass percentage seems to be 10% which means 100 students are able to qualify this exam out of 1000 entrants into the course.|
|Demand||Definitely, the demand of CA’s is higher because they are only authorized to audit the Financial Statements of the company.||CFA is demanded by many national and multinational companies looking for a candidate to be an expert in finance and handle their investments.|
|Paper Pattern||CA is a subjective paper-based pattern. Hence, forget about the luck factor.||CFA is an MCQ based paper pattern which involves a little luck factor in getting clear this exam.|
|Exam Pattern||Here the CA students get benefited because the papers are spread over 16 days having 1-day preparation leave in each paper.||CFA is really difficult to prepare during exam time because here students are required to prepare all the 10 subjects in one day.|
|Salary||The average package of a fresher CA range between 6-7 lakhs which increases depending on your work.||The average earnings of a fresher CFA is estimated upto 4 Lakhs which increases with your experience and ability.|
Conclusion – With the above article you must have got an idea which course you should pursue CA vs CFA. CFA is ideal for a career in Investment Banking and Portfolio Management whereas the CA is beneficial for a career in Audit and Taxation. Both are the two renowned courses and their scope is rapidly increasing but one must choose career seeing his interest and ability.