CFA vs CWM – Which is Better? Certification courses are in abundance and the great deal of worry for many students is which one to pursue. On one side we have the CFA exams are considered to be gold standard among the finance certification exams. If you have keen interest in Portfolio Management, Investment Management, equity research and Investment Banking, then CFA suits you more. However, Chartered Wealth Manager (CWM) is a certification suited best for professionals in the field of Wealth Management, Private Banking, Family Offices and Financial Advisory. In this article, we details the differences between the two and help you clear the confusion.
The structure of the article is as per below –
- CFA vs CWM Infographics
- What is CFA?
- What is CWM?
- CFA vs CWM Exam Requirements
- Why pursue CFA?
- Why pursue CWM?
CFA vs CWM Infographics
Reading time : 90 seconds
Lets understand the difference between these two streams with the help of this CFA vs CWM Infographics.
CFA vs CWM Summary
|Certification Organised By||CFA Institute||American Academy of Financial Management|
|Exam/Window||CFA Level I exam is held in the month of June and December every year.|
Level II and Level III is held in the month of June every year
|Bookings made as per your convenience however the examination dates fall between 10th and the 20th of every month|
|Subjects||These 10 modules consist of:|
*Ethics and Professional Standards
*Financial Reporting and Analysis
|Level 1 Foundation Level
UNIT 1 — OVERVIEW OF INDIAN AND GLOBAL FINANCIAL SYSTEM
UNIT 2 — CONCEPT OF WEALTH MANAGEMENT
UNIT 3 — LIFE CYCLE MANAGEMENT
UNIT 4 — MEASURING INVESTMENT RETURNS IN WEALTH MANAGEMENT
UNIT 5 — INVESTMENT VEHICLES OF WEALTH MANAGEMENT
UNIT 6 — MANAGING INVESTMENT RISK IN WEALTH MANAGEMENT
UNIT 7 — INDIAN TAX LAWS
UNIT 8 — LEGALITIES IN WEALTH MANAGEMENT
UNIT 9 — ROLE OF WEALTH MANAGEMENT IN BANKING
UNIT 10 — INTERGENERATIONAL WEALTH TRANSFER & TAX PLANNING
Level – 2 Advanced Level
UNIT 1 — EQUITY ANALYSIS
UNIT 2 — USE OF ALTERNATIVE PRODUCTS IN WEALTH MANAGEMENT
UNIT 3 — USE OF BEHAVIORAL FINANCE IN WEALTH MANAGEMENT
UNIT 4 — REAL ESTATE VALUATION AND ANALYSIS
UNIT 5 — LOAN & DEBT MANAGEMENT
UNIT 6 — PORTFOLIO MANAGEMENT STRATEGIES
UNIT 7 — RELATIONSHIP MANAGEMENT BY A WEALTH MANAGER
UNIT 8 — INTERNATIONAL TAXATION AND TRUST PLANNING
UNIT 9 — WEALTH MANAGEMENT PLANNING
UNIT 10 — ADVANCED WEALTH MANAGEMENT
|Pass percentage||CFA 2016 you need CFA Level 1 43%, CFA level 2 46% and for CFA level 3 54%.||50% marks in all subjects with no negative marking|
|Fees||CFA fee is approximately $650 - $1380 including registration and examination||The registration fee is 400 $ which includes access to the study material.|
|Job opportunities||Investment banking, portfolio management and equity research||Portfolio and asset manager,
Wealth manager, broker and market analyst, heads of financial accounts, financial controller, private banker
What is CFA?
The certification program is conducted by the American based CFA Institute (formerly the Association for Investment Management and Research, or AIMR). This course is an ideal path breaking experience for finance and investment professionals looking for a career boost. The course provides a solid foundation in advanced investment analysis and real-world portfolio management which is appreciated by industry insiders on a global level. The study format is designed to meet the demands of the growing investment industry looking for sharp skills to accelerate the market growth as well as the company’s. Considering this aspect to be a major factor in initiating this course the CFA institute pays utmost regards to ensure the syllabus is updated regularly and continuously meets the demand of the market. The course covers topics like investment management, financial analysis, stocks, bonds and derivatives, and provides a generalist knowledge on other areas of finance. On successful clearance of the exam the candidate is awarded the right to be a CFA chart holder and is equipped to give advice to companies and institutions like banks, mutual funds, insurance companies and other financial institutions.
What is CWM?
The Chartered Wealth Manager is a certification problem suited best for professionals in the field of Wealth Management, Private Banking, Family Offices and Financial Advisory. This international certification program is conducted by the American Academy of Financial Management based in the United States. The certificate program marks an achievement of excellence and is recognized and accepted worldwide in the finance industry including the Global Wealth Management Industry and the Private Banking Community.
The Chartered Wealth Manager (CWM) is the highest Designation that a professional can achieve in the field of Wealth Management & Private Banking. The CWM’s core thrust is on capital and financial markets theory, financial services organization principles, portfolio management, investment management and other skills related to the field. A CWM designation is a benchmark for professionals to fulfill certain financial management responsibilities and it allows an employer to entrust him with the responsibility of assessing the value of companies, perform financial estate analysis, understand portfolio management time horizon, balance risk and returns, identify market opportunities, market products, handle asset allocation and manage clients.
CFA vs CWM Exam Requirements
CFA exam requirements
A student is eligible to sit for the CFA exam only if he has a bachelor’s (or equivalent) degree or is in the final year of his bachelor’s degree program (an update is required on attaining the degree to qualify for the Level II) or he has a minimum of four years of professional experience. A candidate on successfully clearing the exam requires fulfilling the mandate of four years of experience to achieve the certificate of the CFA program.
CWM Exam Requirements
To be eligible for the CWM exam a candidate is required to have a graduate degree or education equivalent to of a post-graduate which is approved by the AAFM and minimum of three years of wealth management experience.
Why Pursue CFA?
- The CFA program bridges the gap between the market demand and a professional. The program ensures the candidate’s aptitude is developed according to the current practice of the industry.
- The difficulty level of the CFA exam ensures students put in quality effort and rigorously study to standout in the eyes of the employer.
- The CFA hones a candidate’s practical skills thereby making him an asset for his company, providing him with a competitive edge and increasing his chances of a hike in the future.
- The CFA program is cheaper than the other certifications and provides a sound knowledge about the financial markets, increasing a candidate’s expertise level and knowledge on the same.
Why Pursue CWM?
- The CWM designation commands the respect of the consumers as well as professionals of the industry.
- The CWM adds a value to your resume boosting your career prospects immensely.
- CWM opens up doors of multiple opportunities and among them is the confidence to start your own business.
- The CWM is the best qualification a professional can achieve in the Wealth Management Industry and therefore this designation in a candidate’s profile increases his access to the industry events and networking opportunities.
CFA exams are ideal path breaking experience for finance and investment professionals as it provides solid foundation in advanced investment analysis and real-world portfolio management which is appreciated by industry insiders on a global level. However, CWM is the best qualification a professional can achieve in the Wealth Management Industry. CWM is a difficult exam. Candidates have taken at least four attempts to clear it so it is advisable that quality amount is spent studying.
Choose the one that excites you the most!