Career Path and Scope of CFA in India

February 1, 2023
scope of cfa in india

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If you are a finance and accounting graduate, this question must have come into your mind “What is the scope of a Chartered Financial Analyst (CFA) in India?”
In this article, we will be discussing the scope of CFA in India.

Chartered Financial Analyst ensures you the highest distinction in the investment management profession. More than 20,000 CFA character holders are there in India. The CFA program is offered by the Chartered Financial Analyst Institute. It is a post-graduate level qualification and has a high level of global recognition for finance-related activities.

It covers many sectors and topics related to finance and accounting, for example, economics, statistics, probability theory, financial planning, financial analysis, portfolio management, etc.

The average period of completing the program is 4 years. The students require a bachelor’s degree to be eligible for CFA or should have a minimum of 4 years of work experience.

So, let’s get started with the scope of CFA in India.

Scope of CFA in India and Market Demand

The scope of CFA in India is wide. CFA broadly covers the entire finance industry. As a professional certification, the Chartered Financial Analyst profession opens up numerous career opportunities.

India is considered to be the 3rd largest market for Chartered Financial Analysts. The robust changes and requirements in the finance domain have led the demand for CFA to increase in India. Various reputed organizations in India recruit CFA character holders from different levels.

The CFA program comprises three levels and each level offers prospective job opportunities. As experience and skills increase, the CFA salary in India increases concurrently. Some of the popular domains where the scope of CFA in India is broadly scattered are:

  • Investment Banking
  • Wealth Management
  • Risk Management
  • Research Analyst
  • Private Banking
  • Portfolio Management
  • Chief Executive Officer
  • Asset Management
  • Equity Analyst

Top 5 Career Options after CFA in India

The CFA certification exposes you to a wide range of career options. There is a broad scope of CFA in India. Plenty of job opportunities are there that boost your knowledge and skills and help you grow more in your career.

Investment Banker

Every firm or organization in this world requires capital to run its business. Investment banker helps their clients raise money for their firm. Investment bankers are aggressive salesmen.
They also perform various valuation methods and provide recommendations for product offerings, private equity transactions, mergers, and acquisitions. Investment bankers develop relationships with new and existing clients to expand the business and raise capital, review materials used in clients’ financing, and perform due diligence.

They require excellent financial skills and deep knowledge of the financial market, as well as sales skills for raising money. Therefore there is a CFA demand in India.

Skills Required

  • Impeccable quantitative and financial skills.
  • A degree in finance, accountancy, or CFA program.
  • Tenacity, persuasiveness, networking, and communication skills.
  • Ability to perform a valuation on the spot.

Average Income – INR 12.96 Lakhs per annum.

Portfolio Manager

A portfolio manager is a person who is responsible for managing the fund’s assets, developing and implementing the fund’s investment strategies, and managing and controlling day-to-day portfolio management activities. They work as an active or passive manager. They are in charge of the fund, whether the fund is a closed fund, open mutual fund, hedge fund, venture capital fund, or exchange-traded fund.

Skills Required:

  • The ability to originate ideas
  • Excellent research skills

Average Income – INR 12.36 Lakhs per annum.

Risk Manager

A risk manager analyzes, manages, and controls risk-related elements of an organization to determine the potential loss. They are responsible for managing liability programs, gathering risk data, and mitigating the risks as required.

Risk managers plan and direct the risk management programs. Risk managers also respond to inquiries from internal and external points of contact and conduct analysis and research to resolve questions regarding processes of risk and controls data.

Skills Required:

  • Negotiation and diplomacy
  • Impeccable quantitative and numerical skills
  • Sharp analytical mind
  • Excellent communication
  • Presentation abilities

Average Income – INR 10.08 Lakhs per annum.

Market Research Analyst

The scope of CFA in India stretches to the Market research analyst position. A market research analyst gathers and analyses data about the upcoming and ongoing demands in the market of different products from different sources to produce results, which are then presented back to a client. They may also require making recommendations based on their findings.

Market research analysts are hired by public and private sector organizations, as well as by charities and non-profit organizations. They can also work as freelancers or consultants. A degree in finance or completion of CFA with their graduation degree is enough for the job.

Skills Required:

  • Designing questionnaires
  • Collecting data and assimilating statistics
  • Monitoring the progress of data collection
  • Interpreting data for clients
  • Making recommendations based on the data collected
  • Managing a team of data collectors and data input assistants
  • Carrying out interviews and conducting surveys
  • Managing budgets

Average Income – INR 4.50 Lakhs per annum.

Private Bankers

Private banking work includes providing banking, investment, tax management, and other financial services to high-net-worth individuals or private clients. Unlike the normal retail banking that we know of, private banking stresses providing more personalized financial services to its high-net-worth clients.

Banks certainly allocate their best-performing employees to the private banking division for managing the accounts of high-net-worth clients. This practice typically translates to higher investment returns for clients. For being a private banker, the qualification includes a degree in finance or CFA would be enough too.

Skills Required:

  • Ability to analyze financial information.
  • Ability to create and implement recommendations.
  • Good understanding of the banking and financial systems.
  • Excellent interpersonal and communication skills to establish a rapport with individuals quickly and build trust with potential or current clients.

Average Income INR 16 Lakhs per annum.

Q&A Expert

Along with preparing for CFA you can become a subject matter expert at Chegg and earn online. Chegg is a well-recognized e-learning platform offering multiple educational services. Chegg is highly acknowledged by students worldwide for helping them with their studies.

As a subject matter expert, you can earn well by answering questions posted by students on various subjects on the Chegg platform. The available subjects are Statistics, Mathematics, Economics, Business, and many more. Being a Q&A expert will not only fetch you extra earnings but will also enhance your CFA preparation.

Skills Required:

  • Adequate knowledge of the chosen subject
  • Basic writing skills

Average Income – INR 3.04 Lakhs per annum.

Is CFA the Right Career for You?

In this article, we discussed the scope of CFA in India. The Chartered Financial Analyst is one of the professing career options if you want to inculcate yourself in the finance field. The CFA program covers almost all aspects of the market financial model. It majorly offers career opportunities in fields like investment banking, asset management, equity analysis, portfolio management, and more.

Although the CFA exam is quite difficult to clear, the salary package offered compensates for all the efforts. The CFA salary in India is one of the main driving forces behind CFA aspirants. This program enables you to enhance your knowledge and skills, and grow more in your career.

Other course options in the Finance domain include:

  1. MBA Finance
  2. CFP
  3. CA

Frequently Asked Questions

Q1. Does CFA have any scope in India?

Ans. The scope of CFA in India is widely scattered. The Chartered Financial Analyst (CFA) is a dignified certification program, it offers specialization in the finance domain. Multiple career fields are available after CFA. Some of the popular job profiles are portfolio manager, risk manager, investment banker, research analyst, asset manager, private wealth manager, and many more.

Q2. What is CFA salary in India?

Ans. The Chartered Financial Analyst is a reputed designation in the market. It with-holds high-end responsibilities and thereby pays an exciting salary. The average annual salary of a CFA in India ranges around INR 6.31 Lakhs. The earnings vary according to the experience gained in this field. A fresher earns around INR 2 Lakhs annually which may increase up to INR 29 Lakhs.

Q3. What are the job opportunities after CFA in India?

Ans. There is a huge scope of CFA in India. Numerous job opportunities are available after CFA in India that expose you to high-end knowledge and working officials. Some of the popular options are:

  • Portfolio Management
  • Market Research Analyst
  • Risk Management
  • Investment Banking
  • Consulting
  • Asset Management
  • Insurance
  • Commercial Banking
  • Private Wealth Management
  • Private Banker
  • Chief Investment Officer
  • Accountant/Auditor

Q4. Who earns more CFA or MBA?

Ans. The potential earnings of both fields depend on the job profile, skills, knowledge, and experience. Both CFA and MBA offer high salary packages. MBA is a post-graduate degree while CFA is a professional certification, hence the earnings are more exciting in the case of CFA. An MBA graduate can earn an average salary of INR 4.43 Lakhs per annum while a CFA earns around INR 6.31 Lakhs per annum.

Q5. Is CFA tough than CA?

Ans. The difficulty of an exam depends on you. An exam that you feel is difficult may appear to be easy for another person. The way you approach an examination often determines its difficulty. However, when compared CFA is quite tougher than CA. Most students find it difficult to clear CFA. The CFA exam required more effort compared to CA.

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