As a future finance professional, there is always a confusion about which certification you should do to upskill yourself. When it comes to risk management, Financial Risk Manager (FRM) sure tops the list but it is also one of the most time consuming certifications. So what are the other certifications one can do to gain skills that will help you boost your CV? Let’s discover those courses in this article.
CFA (Chartered Financial Analyst)
It is offered by CFA institute and has a reputation of being an exhaustive course. It tests a candidate’s ability in the areas of portfolio management, asset valuation, and investment tools. In order to get the charter, the candidate had to clear three of the exams. All three levels cover topics like time-value of money, accounting, ethics, derivatives, economics and statistics. Each level builds the foundation for the next one, shaping candidates ability to analyse investments and portfolios. Individuals who have successfully completed CFA are said to demonstrate competence, integrity and extensive knowledge in core finance areas.
-
- Structure: 3 levels of written exam and minimum 4000 hours of work experience to get the charter.
- Duration: It is advised to keep at least 6 months of preparation gap between each level. Expected amount of time to complete the course is 3-4 years.
- Eligibility: Candidates should be enrolled in an undergraduate course with at least two years remaining to register for Level I exam.
- Job Prospects: Major banking and financial institutions hire CFAs for roles like financial analyst, portfolio manager, investment banking analyst etc.
- Average Salary: As a complete fresher with CFA designation, starting salary ranges between INR 6 lakhs to 8 lakhs. With experience you earn up to INR 28 lakhs to 44 lakhs per annum.
- Major Companies you can get into: Goldman Sach, Morgan Stanley, Wells Fargo
More details on CFA, visit here.
Financial Modelling
Financial Modelling is one the highly demanded skills for any finance professional. It is the process of forecasting financial performance of the company. Different dynamic models like discounted cash flow model, mergers and acquisitions model, scenario and sensitivity analysis can be built using this skill. Anyone with a basic understanding of Microsoft Excel can do this course.
You can find many videos relating to Financial Modelling courses online. One such course is the Financial modelling and Valuation course of WallStreet School.
CMA (Certified Management Accounting)
It is for the candidates who are interested in planning, budgeting and forecasting decisions. It grooms the candidates in critical areas of financial planning, analysis, control, and decision making. Some of the topics in this course include: Management, Regulatory Framework, Strategy, and Financial Reporting.
-
- Structure: Consist of 3 levels: Foundation, Intermediate and Final
- Duration: 1- 3 years. Exams are held twice a year.
- Eligibility: Passed 10+2 and bachelor’s degree from a recognised university.
- Job Prospects: Major roles that you can get into are Internal Auditor, Cost Accountant, Finance Manager, Assistant Finance Manager
- Average Salary: it ranges from INR 5 – 12 lakhs per annum.
- Major Companies you can get into: L&T, Capgemini and Haier.
More details on CMA, visit here.
CIMA (Chartered Institute of Management Accountants)
CIMA is a global charter for management accounting which prepares the student to work in banks, audit firms, and e-commerce. CIMA designation holders often get to make a career in financial consulting firms with big and foreign clients.
-
- Structure: Has four levels: Certificate Level ,Operational Level ,Management Level, Strategic Level
- Duration: 2-3 years
- Eligibility: 3 years of experience in any of the following field- Strategic, Technical and Operational leadership
- Job Prospects: Major roles that you can get into are Finance Manager, Management Consultant, Management Accountant, Finance Business Partner, Financial Accountant, Business Analyst, Accounts Assistant
- Average Salary: it ranges from INR 5 – 10 lakhs per annum for freshers.
- Major Companies you can get into: A H Worth & Co Ltd, Abbott Ireland, AbbVie Ltd, Absa Bank, Accenture
For information, visit here.
CAIA
Alternative investments are the future of investments, hence the demand for CAIA is only going to increase.
-
- Structure: Candidates must pass 2 levels of examinations and have at least 4 years of work experience.
- Duration: Unlike FRM, you have unlimited time to pass Level 2.
- Eligibility: Hold bachelor’s degree or its equivalent.
- Job Prospects: You can find yourself in the roles of asset allocator, risk manager, fund administration and consultant.
- Average Salary: it ranges somewhere between INR 5 lakhs – INR 25 lakhs per annum.
- Major Companies you can get into: Merrill Lynch, Wellington Management, Morgan Stanley, UBS AG, BlackRock
There are plethora of finance certifications for you to explore. Finding your niche and interest is important when it comes to pursuing the right certification.
Hope this helps!
