Which Is Better: CFA or FRM?

Which Is Better: CFA or FRM? To boost your career in the Finance industry, the best way out is to obtain a professional certification like CFA or FRM. Often, aspiring finance professionals get confused deciding which is the best career option for them - FRM or CFA. If you are among them, then read on to get all the information related to the two courses, which will help you make an informed decision. It would also be a good idea to approach a CFA expert to guide you in the decision-making.

Comparing CFA and FRM First, let us understand what the CFA and FRM programs are.

What is the CFA Program?

It is a professional master's degree offered by the CFA Institute. To get the CFA certification, you need to pass its three exam levels, get the relevant work experience, and then apply to the CFA institute to become a charter holder or member. As the exams are tough, most students join CFA Online Coaching to get guidance on how to pass them. Aspirants need to invest at least 300 hours of study time for each exam.

Skills CFA offers It provides expertise in investment analysis, financial reporting, quantitative methods, portfolio management, and many other skills.

Scope of CFA The CFA program offers a high level of global recognition in the finance sector in India and abroad. After you become a CFA holder, you can apply for respectable positions like Investment Banker, Portfolio Manager, or Market Research Analyst.

Earning Potential The earning potential is excellent, and positions like Risk Manager can get you a salary of INR 10 LPA, while an Investment Banker with around one year of experience can expect to earn INR 8 to 10 LPA.

What is the FRM program?

The Financial Risk Manager (FRM) certification is offered by the GARP (Global Association of Risk Professionals), which is recognized worldwide. To earn an FRM certification, you are required to clear two levels of exams and obtain two years of relevant work experience.

Skills FRM offers It provides expertise in identifying, analyzing, and mitigating risks.

Scope of FRM The demand for Financial risk managers is on the rise, especially in banks, consulting firms, and asset management, insurance, and technological companies, to name a few. After getting the certification, you can get apply for Enterprise Risk Analyst, Credit Risk Analyst, Risk Management Consultant, and other respectable positions.

Earning Potential On average, an FRM certification can fetch you a salary of INR 6 to 20 lacs.

Final words If you compare the two, both have the same difficulty levels comparable to a Master’s degree course. Both require students to devote at least 300 hours to each exam. It is worth noting that 55%of FRM part 1 and 15% of FRM part 2 is covered in the CFA syllabus.

From your career perspective, both CFA and FRM are excellent options since both are globally recognized and offer ample job opportunities. As discussed before, FRM focuses more on risk management, while CFA covers broader subjects related to investment and financial analysis.

It is entirely up to you to decide which is your career preference. If risk management is your field of interest, then go for FRM. However, if you want to go for a broader finance base, CFA is the right option. To clear all your doubts, seek the help of the Best CFA Coaching Classes in Mumbai. Their expert faculty members will assess your interests and guide you in the proper direction.