Which Is a Better Option in India – CA or CFA?
Students are often at crossroads and have to make a tough decision regarding their career path. Almost every commerce student wonders whether they’d be better suited for the Chartered Accountancy (CA) course or the Chartered Financial Analyst (CFA).
Choosing between these career options can be quite daunting. While Both pay hefty salaries, enjoy great perks, and are both careers of great demand in the corporate world. So let’s dive a little deeper and weigh these courses through a magnifying glass.
CA vs CFA: Which is better?
Choosing between good and bad is easy, but selecting between good and good is extremely difficult. The latter applies to this choice. The CA course requires a five-year commitment and includes three levels, namely foundation, intermediate and final. You can enrol for the CA course immediately after clearing class 12 or after graduation. Chartered Accountancy provides flexible job opportunities for students in India.
The CFA course on the other hand is a four-year commitment, including relevant work experience. Aspirants have to clear a six-hour examination to be able to get a certificate from the CFA Institute. Once the exams are cleared, students can apply for a CFA membership and get registered with their local CFA society. This article covers all the aspects that you need to consider before making any decision. But first, it is important to understand each profession separately.
Chartered Accountancy (CA)
The Chartered Accountancy course is conducted, managed, and organized by the Institute of Chartered Accountants of India (ICAI). CA is a professional accountant working with diverse companies and firms. They can work in all fields of finance and business, such as taxation, auditing, consultancy services, and financial management, to mention a few.
Skilled CAs are always in demand in the financial and manufacturing industries. Many commerce students consider this as a feasible career option. Being a CA allows you to work as an accountant, tax consultant, auditor, or analyst in a company. CAs can even form their private firm, offer financial and taxation services to individuals, private or public organizations. The average income of a CA fresher is up to Rs. 6-8 lakhs. This gradually increases with experience.
Job responsibility:
- Prepare monthly financial reports
- Look after the financial process
- Prepare budgets
- Oversee the duties of the accounting department
- Audit the financial statements
- Oversee and comply with the tax provisions
- Coordinate income statements
CA salary in India
The average salary for a Chartered Accountant in India is around 6 to 8 lakhs per year. However, this can vary depending on factors such as location, experience, and the size of the company. Chartered Accountants with more experience and working in larger companies may earn higher salaries. Additionally, Chartered Accountants who work in major metropolitan areas such as Mumbai, Delhi, and Bangalore may earn higher salaries than those working in smaller cities.
Chartered Financial Analyst (CFA)
This is an accounting profession, overseen by an international organization called the CFA Institute. CFAs mainly focus on investment management. Since it is a globally certified course, it deals in global investment management. According to the CFA Institute, only those individuals can use the CFA designation who (a) complete the three graduate-level examinations with six months of preparation for each exam; (b) have four years of work experience. CFA is a more challenging course when compared to CA.
You can study to become a CFA only after completing your graduation. CFA mainly focuses on finance and is completely based on concepts. Moreover, complementary standards and codes (like the Global Investment Performance Standards and Asset Manager Code) enhance the profession’s distinctiveness. Individuals with a CFA certification are immediately hired by the big four—Deloitte, PwC, EY, and KPMG.
Job responsibility:
- Keep track of the financial position of a company
- Research and analyze risk
- Come up with investment-related strategies
- Manage the portfolio of the company
- Investment banking
CFA salary in India
The average salary for a Chartered Financial Analyst (CFA) in India is around 6 to 12 lakhs per year. It’s also worth noting that CFA with additional skills or certifications such as an MBA, FRM, PRM, or CA may be able to earn higher salaries. Also, depending on the industry they are working in, their salary can vary accordingly, for example, a CFA working in a bank or a financial institution will earn differently than a CFA working in a manufacturing firm.
CA vs CFA: The difference between CA and CFA:
| Basis | CA | CFA |
| Core area | CA is an expert in accounting, taxation, law, finance, and audit | CFA focuses on finance |
| Course duration | Divided into three levels, CA requires practical training of three years. | Divided into three levels, CFA requires practical training of four years. |
| Exam-type | Subjective | Objective |
| Minimum qualification required | Class 12 | Graduation |
| Organization | The Institute of Chartered Accountants of India | Chartered Financial Analyst Institute |
| Average income | Freshers can earn between Rs. 6-8 lakhs, which increases with experience. | Freshers can earn up to Rs. 4 lakhs. |
| Demand | CAs are in high demand as they are the only ones who can authorize the financial statements of a company | CFAs are demanded by MNCs looking for candidates who are experts in finance |
If you’re still not sure whether a CA course is better or a CFA course, analyze the data presented above. Chartered Accountancy is better for students who want to become experts in the fields of accounting, auditing, taxation, and business laws. On the other hand, a Chartered Financial Analyst course is generally preferred by those who want to learn the insights of finance and portfolio management. Both courses are equally reputed and high in demand. CFA is demanded globally as a profession, and CA is the most popular career option in India.
CA vs CFA: Pursuing CA and CFA together
You can also opt for both CA and CFA. In such a case, you are advised to pursue the CFA course after completing CA. This will give you an edge over the others. A CA + CFA combination will help you understand the auditing and financing field better and open new gateways for your career. Blending the two sectors will result in your personal growth and also show your dedication and commitment to the job.
Both professions require patience, hard work, and sincerity, and they’re both important jobs in their own right. Being at the top of your game in either field will bring you a lot of respect in society. All you need to do is consider your skill set, level of dedication, and future goals to make an informed decision.
The Chartered Financial Analyst is a globally recognised qualification in the field of finance and investment. If you have recently completed your graduation or are appearing for your final semester, you may be eligible to become a CFA. Interested? We highly recommend checking out our Chartered Financial Analyst (CFA) course. To advance your portfolio and build professional skills, try Zell Education’s interactive courses that offer flexible training timings. Get in touch by filling the form at the side of this blog.
FAQ
What has more demand worldwide? CA or CFA?
Both Chartered Accountants (CA) and Chartered Financial Analysts (CFA) are highly respected and in-demand professions worldwide. Chartered Accountants are primarily in demand in the accounting and finance departments of companies across various industries, as well as in public accounting firms. Chartered Financial Analysts, on the other hand, are in demand in the investment and financial services industry.
Is CFA with CA a good option?
Having both a Chartered Accountant (CA) and Chartered Financial Analyst (CFA) designation can be a good option as it can open up a wide range of career opportunities in the accounting and finance industry. CA provides a strong foundation in accounting and financial reporting, while CFA focuses on investment analysis and portfolio management.
What is the career scope after CFA?
Some of the most common career paths for CFA holders include – Investment Banking, Asset Management, Risk Management, Corporate Finance, and Financial Planning and Analysis.
