CA vs CFA: Which is Better? Eligibility, Difficulty, Salary

As a commerce student, by now you’d obviously have asked yourself – What do I choose between CA and CFA?

With both fields being equally appealing, promising, and in demand, there’s a lot to consider before you choose either.

By 2023, on average, more than 1 Lac students appear for the Chartered Accountancy (or CA) exam by the Institute of Chartered Accountants of India (ICAI). It’s considered one of the best careers in India because of its demand and growth.

On the other hand, becoming a Chartered Financial Analyst (CFA) opens you up to unique and global opportunities.

So what do you choose?

Let’s take a closer look at both CA and CFA in this post.

CA vs CFA - An Overview

CA is one of the most popular charters in India. The course of learning demands a lot of training, education, and hard work. CAs are expected to be involved in:

Accounting and auditing
Taxation
Financial Planning
Consultancy

Indian businesses rely a lot on CAs which explains why this field is so sought upon by candidates.CFA, on the other side, has a higher learning curve as it requires candidates to put in a lot of hard work to complete all 3 levels. CFA is a professional designation that includes:

Financial Analysis
Securities Valuation
Investment analysis
Portfolio management
M&A and Consulting

Both CA and CFA hold a lot of value and regard in the Indian finance industry. Seeking a career in both these domains will provide a lot of career opportunities for you.Now to help you choose the right domain for your career, here’s a detailed analysis of both these fields.

Perimeter	CA	CFA
Areas	Accounting, Taxation, Financial Planning, and Consultancy	Financial Analysis, Equity Credit, M&A, Portfolio Management, Consulting
Organizer	Institute of Chartered Accountants of India	CFA Institute (USA)
Duration	3 to 5 years (Avg)	2-4 years (Avg)
Subjects	20 subjects in 3 groups in total	A total of 10 subjects repeated over 3 levels
Exam Pattern	Subjective	Objective and Essay (L3)
Average pass percentage in India	More than 11% in 2022	Level 1: 37% Level 2: 40% Level 3: 48% in 2022
Difficulty level	With an average pass rate of 20%, it can roughly take 4 years	Over 37% pass rate for Level 1 CFA
Career Options	Auditing, Taxation, Bookkeeping, Accounting & Finance, etc.	Financial Analysis, Equity and Credit, Portfolio Management, Private Wealth Management
Hiring firms	All firms across all industries	MNCs, Banks, Investment companies, Research & Consulting firms

CA vs CFA - Eligibility Criteria

As both fields have their respective parameters, there are also different eligibility criteria for each. Here’s a breakdown:

CFA

Undergraduate students need to have cleared their 10+2 exams.

At least 50% aggregate in class 12 exams.

Commerce graduates need a minimum of 50% aggregate.

Non-commerce graduates need a minimum of 60% aggregate.

Candidates should take the mandatory exams for the course such as CPT.

The CFA program has no upper age limit.

Candidates need to have a minimum of four years of work experience.

CA vs CFA - Responsibilities and Salary

CA	CFA
Provide accounting services to clients. Prepare and file tax returns for clients or businesses. Conduct auditing for companies. Manage financial records and statements for clients. Assist businesses and clients to obtain and manage funds. Keep clients up to date with tax laws and accounting standards.	Conduct research and analysis of financial data. Provide investment recommendations to clients. Manage investment portfolios for clients and companies. Help companies and clients understand their financial objectives and other factors like risk tolerance.

Salaries

Since Chartered Accountants branch into different domains, the approximate salaries across these domains also vary.

Accountant – 6 to 8 LPA
Consultant – 6 to 9 LPA
Tax Auditor – 6 to 9 LPA
Investment Banker – 5 to 9 LPA
Management Accountant – 9 LPA

Much like CA, Chartered Financial Analysts also have multiple career directions with different salary ranges. Here’s an approximate breakdown of CFA salaries:

Research Analysts – 7 to 12 LPA
Finance Analyst – 6 to 12 LPA
Credit Analyst – 6 to 12 LPA
Portfolio Manager – 7 to 15 LPA
Equity Research Associate – 5 LPA

CA vs CFA - Training and Certifications

Both CA and CFA can open multiple career options for you in the future.

However, both require rigorous hard work, practice, and necessary training.

In fact, when it comes to training for both domains, there are certain similar ways to give yourself a headstart:

Start preparing early
Create a personalized learning roadmap
Keep on practicing mock exams and interviews
Consult professionals and join learning groups
Build your skills with certifications and training programs

To build your skills in both of these career options, you need to work on building your skills and knowledge as part of your preparation.

A good understanding of your preferred field can give you a lot of advantages when it comes to landing a job or applying to different companies.

At CFI, we have curated a comprehensive CFA Level 1 Certification for you to get a deeper understanding of CFA and understand what it takes to clear the CFA Level 1 Exam.