CFA® vs CFP – What’s right for you? There are many finance certifications available these days. These certifications help students get through the hurdles of knowing specifically one particular topic. However, most students do get confused about what to pick and what to let go of as on the surface, everything looks pretty similar.
In this article, we will simply outline about CFP and CFA® so that after going through these, you’ve an idea about what to pick and what not to. This article is especially for students who are evaluating between CFA® and CFP and don’t have much idea about what to choose from the two.
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The article will flow in this order:
- CFA® vs CFP Infographics
- What is Chartered Financial Analyst (CFA® )?
- What is Certified Financial Planner (CFP)?
- Why pursue CFA® ?
- Why pursue CFP?
Without much ado, let’s get started.
CFA® vs CFP Infographics
Reading time : 90 seconds
Lets understand the difference between these two streams with the help of this CFA® vs CFP Infographics.
What is the Chartered Financial Analyst® (CFA® ) charter?
The CFA® Program focuses on investment management. The top employers of charterholders include the most respected financial corporations in the world, e.g., JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo, to name a few.
Many of these are investment banking firms, but the CFA® Program focuses on the knowledge and skills most relevant to the global investment management profession from the standpoint of a practitioner.
Investment professionals who hold the CFA® designation (or CFA® charter) meet rigorous educational, work experience, and ethical conduct requirements.
Only those who complete three graduate-level examinations, four years of work experience, and annual membership renewal (including an ethics and code of professional conduct attestation) are permitted to use the CFA® designation. Complementary codes and standards (such as the Global Investment Performance Standards and Asset Manager Code) help enhance this professional distinction. Do checkout the CFA Exam dates and schedules for further information.
What is Certified Financial Planner (CFP)?
- Once you become a CFP, you will be a trusted advisor for people who need help in financial planning. You will not only be able to help them in their personal finances, you will also help them save taxes and create personal savings.
- It’s a great career option as people are looking for experts who have authority in budgeting, retirement planning, insurance coverage planning and taxation. Financial corporations are looking for experts like CFP everywhere, but very few certifications can offer the benefits which only CFP can.
- There are many financial planners in the market, but very few can trust them on the grounds of ethical responsibility. But CFPs are different as CFP board takes particular care to train the students with rigorous and strict ethical standards.
Why pursue the CFA® designation?
The differentiating benefits of earning the CFA® designation include:
- Real-world expertise
- Career recognition
- Ethical grounding
- Global community
- Employer demand
The sheer demand for the CFA® charter speaks to the difference it makes.
More than 160,000 CFA® exam registrations were processed for the June 2015 exams (35% in the Americas, 22% in Europe, Middle East, and Africa, and 43% in Asia Pacific).
For more information, refer to- CFA® Program
- You can also read Complete Beginners guide to CFA® Examination for detailed understanding.
Why pursue CFP?
Pursuing CFP has many benefits –
- If you don’t need to incur much cost for being a CFP professional. It’s within the range of US $400 and will be valid for 1 year.
- CFP allows you to help a lot of people along with getting a career which will only increase in potential over time. Thus, organizations are only looking for CFPs when they want to recruit someone as a financial planner or financial advisor.
- CFP takes care of your education, examination, training and ethical standards. Even if you are a novice, you can learn everything only from this one course.
If you wish to evaluate other financial certifications, you can also checkout –
CFA® vs CFP,whatever your end choice may be, let it be an informed one. This decision is for your career and hence keep in mind all these pros and cons in mind. I hope i could help in whatever little i could. All the very best 🙂
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