Certified Financial Analysts are individuals who have completed a rigorous process to earn the certification of Chartered Financial Analyst (CFA). This distinction was first introduced in 1963 by the Association of Investment Management and Research (AIMR), now known as the Chartered Financial Analyst Institute. The professional distinction of CFA ensures a standard of competence and integrity. A CFA typically reviews numbers provided by accountants and makes recommendations and predictions for clients. A client can be the company for whom they work, or companies and individuals for whom they provide analysis.
Requirements
To become a Chartered Financial Analyst, you must first have a bachelor’s degree and three to four years of investment experience. The program designed by the Chartered Financial Analyst Institute takes approximately four years to complete. This self-study program focuses specifically on investment knowledge, unlike any other post-graduate certification courses. After completion, individuals are required to take and pass three exams over the course of three years. These exams take approximately six hours to complete and require a six month study time for most students. A total of 250 hours should be allotted for study time over the course of the exams. At the time of this writing, the number of individuals enrolled for the CFA exams were down. (Bloomberg) However, experts expect the numbers to increase over time with market fluctuations. CFAs must also join the CFA Institute, adhere to the code of ethics provided by the CFA Institute, and apply for membership to a local CFA society.
Benefits
Chartered Financial Analysts have many advantages over financial analysts with no certification. Potential employers around the world recognize the CFA distinction, and know CFAs are dedicated, hard working, self-motivated, and qualified individuals. The CFA professions is predicted to grow at a faster rate than most professions in the next several years. With a median salary of $75,650, there is fierce competition for Chartered Financial Analysts positions worldwide.
Job Description
Chartered Financial Analysts review all relevant investment data and make predictions regarding the future market. Investment data can include current accounting numbers, economic and market trends, company strategy, business news, and global influences. Based on research and financial knowledge acquired during the program and job experience, a CFA will recommend when a client should buy and sell investments and suggest a strategy to ensure the client makes money on their investments.
Certified Financial Analysts are individuals who have proved themselves as diligent, hard-working individuals with the knowledge necessary to make financial decisions with a large impact. Earning this professional designation takes time and dedication that not every individual possesses. Since becoming a Chartered Financial Analyst forces individuals to achieve a high level of accomplishment, the certification stands out from other post-graduate certifications and achievements. This designation is one of the most recognized and respected distinctions in the world of finance.
