Is it worth taking up the CFA exam?

Gunjan thakurMarch 30, 2022

Are you wondering whether to take up the CFA exams? Well, you are not alone then. Hundreds and thousands of professionals think about this each year. The Chartered Financial Analyst (CFA) designation is one of the most valuable credentials, particularly for investment professionals. However, the journey to becoming a CFA holder is pretty long because it not only tests knowledge of the subject but also endurance, diligence, and will along with it.

The CFA program comprises three exams: the CFA Level I, Level II, and Level III. All CFA candidates need to pass each of these levels as well as meet certain work requirements set by the CFA Institute. CFA Institute describes the current program as a self-study and a distance-learning program having a generalist approach to valuation, investment analysis, and portfolio management, thus emphasizing the highest professional and ethical standards.

However, while evaluating the benefits of the CFA charter, you may often end up in the discussion on whether CFA is a good return on investment. First, you must be willing to know the CFA Level I cost so that you can have a better estimate of the total budget for the other two levels of CFA exams. So, here’s a proper guide on all the relevant information about the CFA exam – benefits and types of CFA exam costs.

Benefits of the CFA Program

If you’re still on the fence and willing to know more about CFA, use the below-mentioned information to make a strong decision on whether this challenging set of exams is worth the investment and effort.

• Enhances Career Path – With advancements in globalization and expansion in the financial services sector, there has been a remarkable rise in the demand for CFA professionals. Many renowned asset managers, investment banks, and even accounting firms have started using the CFA designation as a quality indicator in hiring decisions. The CFA designation is extremely useful for industry professionals and non-investment professionals. Not only that, even students can benefit from CFA, if they are keen on a banking career.
• Provides graduate-level knowledge in finance – Perhaps CFA exams are quite challenging as well as tough to pass as they provide strong financial knowledge and credential. The syllabus is constantly updated based on recent innovations and events. The CFA program can also help you get exemptions from other professional certifications such as GMAT/GRE.
• Global Recognition – CFA is one of the most recognized and valuable professional qualifications in finance across the globe. The best thing about this recognized qualification is that CFA holders enjoy better international career mobility.

Now that we have discussed some of the essential benefits of taking up the CFA program, let’s have a look at the type of costs involved with the course, starting with the CFA Level I cost.

Components of CFA Exam Fees

• CFA Enrollment Fees and Registration Fees – While enrollment fees need to be paid only once during CFA level I registration, registration fees need to be paid on every level.
• Price of CFA Calculator – Although it holds a relatively small amount, still the prices of CFA-approved calculators should be considered in the overall cost of the CFA program.
• Cost of CFA Study Materials – This cost depends upon two factors, that is, whether you’re using a CFA curriculum or third-party study materials as the source of learning.
• Additional Costs – Taking up a CFA program can add some miscellaneous costs to your budget that may include travel costs, retake fees, and rescheduling fees.
• Annual Membership – Once you have passed all the levels of the CFA exams, you will have to pay the CFA Institute’s annual dues and apply for regular membership to obtain your CFA Charter.

Conclusion

Hope this guide has helped you learn important information about the CFA program. To conclude, regardless of the CFA Level I cost, acquiring a CFA designation can open up a wide range of opportunities in finance and offer higher salary compensation. As a result, you can consider the CFA program as a good return on investment.