17 Feb

Battleground Finance: CFA Vs FRM

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  • SSEI Admin

Are you interested in a career in Finance? Chances are that you are drifting between two coveted words in the financial dictionary- CFA and FRM. The coveted charter-jewels of the financial sector, it is necessarily the most confusing choice to make, since both the charters come with their own set of skills and are very coveted by the industry and employers. In case you have been caught in the web of confusion as to which charter to pursue greater success, know that both charters come with a set of specific skills which equips you for a career in Finance.

Check our YouTube video Link below on Carriers in Finance –

https://www.youtube.com/watch?v=30H-4Fn5t1Q

CFA VS FRM: The skill set

CFA and FRM equip you with different kinds of skill sets. The CFA is a charter you can pursue if you are interested in a career as a fund manager, hedge fund manager, asset manager, equity analyst and the likes. Since the CFA charter is given by the CFA institute, which is a globally recognised body and requires a candidate to have a minimum of four years of work experience and requires to follow the CFA ethics and code of conduct set by the institute it is quite literally a globally accepted and recognised charter and compares to a masters degree in management with minor degrees in various subjects like portfolio management, economics, statistical analysis, accounting and company ethics. FRM, on the other hand, is provided by the Global Association of Risk Professionals, similar in recognition stature as the CFA institute but the charter equips you with the skill and knowledge to tackle the complexities of risk management in the financial sector. Each big company dealing in Finance need specialised personnel in both Financial Analysts as well as Risk Managers. So choosing either would be a great idea, provided you are ready to commit for a tumultuous time ahead until you get the charters.

CFA VS FRM: Exams

The CFA exams cover a broader range of topics in comparison to the FRM exams. The CFA institute conducts exams only once a year in June except for Level I exams which happen twice a year, once in June and again in December. Since CFA covers a wide range of topics such as quantitative methods, financial reporting and analysis, ethical and professional standards, economics, fixed income and equity investments, the institute suggests at least six months and over 750 hours of preparation. It is intensive. But the FRM exams aren’t easy either. Even though the topics covered are funnelled around financial risk analysis and management, the preparation time suggested by the institute and successful charter holders suggest an intensive regime. The exam takes place two times a year, May and November. One can sit for both parts in a single day, but the Part II paper goes unchecked if one fails to qualify the first paper. Well, you’ve got to sit for both parts again. Speaking solely based on study hours and quantitative preparation analysis CFA is more intensive, but on a qualitative level, both CFA and FRM are preparation intensive and are similarly difficult to pass and hence the charters hold a similar level of respect in the industry.

CFA VS FRM: Salary

Salary, the most coveted word in any professional’s dictionary! Let’s discuss that now. Without stretching the gum, let’s get down to business. CFA’s with a few years of experience can expect to earn an average of Rs 72,18,619 annually while FRM’s can expect to earn Rs 57,74,895 per annum. While the figures are just suggestive know that pay differs from company to company, geographical location, experience etc. The figures are a cumulative average of data collected by market research. Both charters command high-paying jobs and additional charters and degrees always help you rise up the ladder in a career in finance.

So the answer comes down to plain simple math. Evaluate yourself and understand what your skills are and what aspects of the finance interest you more and choose your career accordingly. Either way CFA and FRM degrees require complete commitment and only those that have the passion for what they choose to survive.

But passion alone will not put you through. Preparation is key to success! And Sanjay Saraf Educational Institute is key to assured success!

One Response to “Battleground Finance: CFA Vs FRM”

  1. Shayan says:

    How do i get a job on the basis of FRM and NOT CA ??

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