Is the CFA the right choice for you? 

The Chartered Financial Analyst (CFA) program is administered by the CFA Institute and is often considered one of the most prestigious credentials in the finance industry. It consists of three sequential levels: Level I focuses on the foundational tools and concepts of investment valuation and portfolio management; Level II delves into the application of those tools in real-life scenarios; and Level III emphasises portfolio management and wealth planning. 

Each level requires an average of 300 hours of study, meaning the full program demands close to 900-1,000 hours of preparation, often spread over 2-4 years. In addition to passing the exams, candidates must complete at least 4,000 hours of relevant work experience over a minimum of three years and adhere to strict ethical and professional conduct standards to earn the CFA charter.

Deciding whether the CFA designation is the right choice depends on your career aspirations, readiness to undertake rigorous study, and the professional paths you are aiming for. While it is ideal for finance professionals, not all functions require it and hence, the CFA journey is not worth it for everyone. This guide explores who should consider the CFA, what value it adds to a career in finance, and what alternative qualifications might be worth considering.

Considering a career in finance

For students still pursuing their undergraduate degrees, the CFA can serve as both a differentiator and a developmental tool. The curriculum not only introduces complex financial concepts but also builds analytical discipline and ethical grounding, i.e. qualities highly valued by employers. "I passed level I right after my graduation while I was looking for a job and this set me apart from other candidates in terms of technical knowledge. Being a member of the CFA Society of Bangladesh helps me stay updated with the market on macroeconomic policies and provides the opportunity to network with charter holders around the world. This helps me see the bigger picture of the financial markets around the world," explains Mita Somoyeeta, a charter holder currently working at HSBC. 

Aspiring investment professionals

The CFA is particularly valuable for individuals who are either starting out or advancing in roles such as investment analyst, portfolio manager, or research analyst. The program's rigorous focus on investment principles, ethics, and financial analysis makes it an ideal fit for those who want to gain credibility and expertise in these areas. "The CFA degree significantly deepened my knowledge and skill for the finance industry, especially all things related to the asset management industry. It also created unprecedented access to potential employers, partners and investors," explains Md Saimum Hossain, a CFA charter holder. Hence, for someone aiming to analyse stocks, bonds, or other financial assets and provide investment recommendations, the CFA equips you with a standardised, globally recognised skill set that is well-regarded by top financial institutions.

Financial advisors and wealth managers

For financial advisors looking to provide a higher level of service and analysis to clients, the CFA designation offers a significant advantage. "The CFA gives you an edge in roles like Investment Analyst or Portfolio Manager and even helps corporate bankers stand out. It is increasingly valued by employers in Bangladesh, but the time commitment, around 1,000 hours, is intense. I would only recommend it if you are truly passionate about finance," shares Baha Uddin Khan Sayem, who recently cleared CFA Level II and is currently working as an Associate at Standard Chartered Bank.

The CFA program's emphasis on ethical standards and fiduciary responsibility further helps advisors build client trust, while the knowledge in asset allocation, portfolio management, and client needs analysis allows advisors to construct and manage diversified portfolios. This added credibility can attract high-net-worth individuals and clients seeking sophisticated advice, according to charter holders. 

Corporate financial analysts

While most corporate finance roles do not require the CFA, certain positions, particularly those related to corporate strategy, financial planning, and analysis, benefit from the CFA curriculum. "The CFA is mostly relevant to the investment industry. Think banks or asset management companies. In that way, I am an outlier as  I am in more of a corporate finance role. Professionally, it has set me apart. Having a professional degree is absolutely necessary for my line of work if you want to move up the ladder," shares Kazi Ajwad Ahmed, a charter holder currently working as a deputy manager at LafargeHolcim Bangladesh Limited.

Analysts involved in evaluating investments, mergers and acquisitions, or capital projects can apply CFA knowledge to assess the financial viability of business decisions and growth initiatives. For these professionals, the CFA adds depth to their financial modelling and analysis skills, though some may consider alternatives like an MBA if their focus is broader.

Equity and credit analysts

The CFA is almost a must-have for analysts who specialise in assessing companies' stock or creditworthiness. Equity analysts use CFA-based skills to conduct in-depth valuations of public companies, while credit analysts assess the risk and profitability of lending or investing in businesses. "Preparing for CFA exams provided me with a solid foundation for my roles in corporate finance and sell-side equity research. Having a deeper dive into finance and adjacent areas such as economics and statistics were incredibly helpful in doing a better job at my work," shares Tanvir Ahmed, a former investment professional who is currently an MBA candidate at Kelley School of Business. 

Bankers with a focus on financial markets

Investment banking analysts and associates who aspire to specialise in financial markets and trading may find the CFA valuable. "It has significantly enhanced my knowledge and understanding of financial markets. In my specialisation, retail product management, this deeper understanding has improved my decision-making abilities and allowed me to provide more informed and valuable advice in business strategy formulation,"​ explains Fahad Bin Sultan, Head of Customer Value Management at HSBC. The designation provides a deeper insight into securities markets, derivatives, fixed income, and other assets. This knowledge can complement on-the-job learning, especially for those who want to move into buy-side roles, such as private equity or hedge funds, where a CFA can add value to their profile. 

While the CFA is highly respected, it is not the only path to a successful career in finance. For example, if you are more interested in accounting, auditing, or tax roles, the Certified Public Accountant (CPA) is often more relevant. It is a strong credential for roles in accounting firms, corporate finance departments, or regulatory bodies. Alternatively, if you are interested in hedge funds, private equity, or other alternative investments, the Chartered Alternative Investment Analyst (CAIA) is designed to provide specialised knowledge in these areas. Lastly, those focused on corporate finance, managerial roles, or accounting may find more value in qualifications like an MBA.

The CFA's investment focus might not align with the needs of professionals interested in broader business leadership, strategic planning, or specific finance functions. Additionally, for professionals who prioritise networking and soft skills, an MBA may offer more immediate benefits, providing access to alumni networks, management training, and a broader business perspective.

Choosing to pursue the CFA is a big decision, one that could impact your career for years to come. For those with a clear interest in investment management or financial analysis, the CFA can be a career-defining credential. But if your aspirations lie outside these areas, another credential may provide a better return on investment.

Before making the final decision, make sure you take time to carefully weigh your goals, consult with mentors, and speak to charter holders to get a realistic understanding of what the journey entails. With the right preparation and a clear alignment between the CFA's benefits and your career ambitions, the designation could be the key to unlocking new opportunities in finance. But remember, there is no single path to success, and the best choice is the one that fits your unique goals and strengths.