Chartered Financial Analyst (CFA) and Chartered Accountant (CA) are the two most in-demand qualifications for commerce students. While both can be challenging and rewarding, learning the key difference between CFA and CA helps students choose the right one.
A CA focuses on auditing, taxation, and accounting, whereas a CFA focuses on investment management and financial analysis. In this blog, we will discuss the CFA vs CA difference, what they are, and help you decide which one to choose.
Table of Contents:
What is CFA?
A Chartered Financial Analyst (CFA) designation, offered by the CFA Institute, is meant for professionals in the finance and investment industry. The CFA Institute has about 2,00,000 members and charterholders in over 165 countries and provides finance education to investment professionals around the world. CFA charterholders build strong expertise in wealth management, portfolio management, asset valuation, investment analysis, and ethics.
Now, to become a CFA, students must pass all three CFA exams, complete 4000 hours of relevant work experience over a minimum of three years, and become a CFA Institute member. A student must provide professional references and pledge to adhere to the institute’s Code of Ethics and Standards of Professional Conduct.
What is CA?
A Chartered Accountant (CA) is a skilled professional who has a notable certification in auditing, accounting, taxation, and financial management. Institute of Chartered Accountants of India (ICAI) awards this qualification in India, after an individual completes a rigorous course of study, practical training, and a set of tough exams. To qualify as a CA, a student must clear three levels: CA Foundation, CA Intermediate, and CA Final, which usually takes 4-5 years.
Also, after clearing both the groups of the CA Intermediate exam and completing the four-week mandatory Integrated Course on Information Technology and Soft Skills (ICITSS), a student can start their CA articleship, which is a mandatory training period of two years (as per the new ICAI scheme), which must be completed before they are eligible to appear for the final exam.
CFA vs CA: Key Differences
CFA vs CA, which is better? Each qualification has different career paths and focuses. To understand the key difference between a Chartered Financial Analyst and Chartered Accountant, here is a quick comparison table summarizing their key features.
| Aspect |
Chartered Financial Analyst (CFA) |
Chartered Accountant (CA) |
| Primary Focus |
CFA mainly focuses on areas such as financial analysis, investment management, portfolio management, and global financial markets. |
CA primarily focuses on areas such as auditing, accounting, financial management, and taxation. |
| Duration |
2-4 years including exams and relevant work experience. |
4-5 years, including a mandatory 2 years’ articleship (under new ICAI scheme). |
| Eligibility |
To earn a CFA charter, one must have a bachelor’s degree and 4000 hours of relevant work experience. Students who are in their final year of a bachelor’s degree can also apply. |
One can register for the CA Foundation level right after completing 12th or directly enter into the CA Intermediate level through the Direct Entry Scheme, skipping the foundation level. |
| Global Recognition |
CFA is globally recognized in over 165 countries, especially in the investment and financial sectors. |
A CA’s global recognition varies. For example, a CA from India might need to clear additional exams to practice abroad. |
| Exam Format |
It also has three levels, each having a different exam pattern. Primarily computer-based exams, multiple-choice for Level 1 and 2, and essay-based for Level 3. |
It has 3 levels, each having a different exam pattern. Foundation exam is computer-based, Intermediate and Final exams are pen-paper based. |
| Fees |
Exam registration fees:
- Level 1 – ₹1,31,493.17 ($1490)
- Level 2 – ₹1,31,493.17 ($1490)
- Level 3 – ₹1,40,318.22 ($1590)
Coaching fees: ₹1,20,000 – ₹2,00,000
|
Exam registration fees:
- CA Foundation – ₹9,800
- CA Intermediate (Group 1 or 2) – ₹13,000
- CA Intermediate (Both Groups) – ₹18,000
- CA Final – ₹22,000
Coaching fees: ₹35,000 – ₹1,50,000
|
| Career Paths |
CFA charterholders can pursue diverse career options, including portfolio management, research analyst, private equity, investment banking, and wealth management. |
Career options after becoming a CA include tax consultant, auditor, corporate finance manager, financial controller, management consultant, and forensic auditor. |
| Difficulty |
CFA has higher pass rates of around 40-50% but it tests deeper analytical and conceptual skills. |
Clearing all CA exams is difficult due to their extensive syllabus and lower pass rates of approximately 10-20%. |
| Average Salary |
The average CFA salary in India ranges between ₹1.2-15 lakhs per year for 0-12 years of experience. |
The average Chartered Accountant salary in India ranges between ₹3.6-19 lakhs per year for 0-10 years of experience. |
| Recruiters |
Top recruiters for CFA charterholders include JPMorgan Chase, Morgan Stanley, Goldman Sachs, and asset management companies like HDFC AMC, SBI MF, and more. |
Large firms like PwC, Deloitte, Infosys, Capgemini, EY, and more. |
Now that you understand CA vs CFA in detail, the real question is which one fits your goals better.
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Which is Better for Your Career: CA or CFA?
Both CA and CFA are respected qualifications that open strong career paths in finance. A Chartered Accountant Qualification shows you are skilled in accounting, while a CFA qualification shows you are skilled in analyzing and managing money. So, which one you choose depends on your choice, personal interests and career goals.
Choose CA if:
- You are interested in auditing, accounting, taxation, and financial and general management.
- You prefer a stable, compliance-focused career path.
- Your goal is a career in financial reporting, corporate finance, or public accounting.
Choose CFA if:
- You are interested in investment management, portfolio management, and financial analysis.
- You are passionate about working for investment banks, asset management firms, or hedge funds.
- You want a globally recognized qualification in the finance industry.
Also, if you want, you can pursue both certifications to gain expertise in both fields. To succeed in any, you require dedication, hard work, commitment, and consistency.
The Bottom Line
CA and CFA are both different paths serving different purposes in the financial industry. The demand for CAs in auditing and compliance remains strong due to statutory needs. However, the growth of global investment markets and fintech is also driving significant demand for CFA charterholders. In the end, your career path is less about pursuing a static qualification and more about adjusting to industry changes.
If you are still deciding between accounting and finance, an Investment Banking Course can help you explore both. It covers valuation, financial modeling, venture capital, and mergers and acquisitions, all skills relevant to both CAs and CFAs. It is also a smart way to get practical exposure before committing to a long-term qualification.
CFA vs CA – FAQs
Q1. Can I do CA without doing CFA?
Yes, you can do Chartered Accountancy (CA) qualification without Chartered Financial Analyst (CFA) certification. Both are independent qualifications with different goals.
Q2. What is the salary of a CA with CFA?
The combination of a CA and a CFA is a valuable qualification that opens up high level roles in finance, and professionals with both certifications often earn higher salary than those with only one. Typically, a mid-level CA with CFA can expect a salary range of ₹15 – ₹30 lakhs per year or more, depending on experience and location.
Q3. Which qualification has better global recognition, CA or CFA?
The CFA is globally recognized and respected, making it ideal for careers in international finance and investment hubs. The CA qualification is primarily recognized within its country of origin (e.g., ICAI for Indian CAs), and additional exams may be needed to practice abroad.
Q4. Is CFA Level 3 harder than the CA Final?
There is no comparison between the two exams as both have their own difficulty level. CA Final has a broader, more voluminous syllabus covering a wider range of subjective topics, while the CFA Level 3 requires a high level of analytical and application skills for portfolio management.
Q5. What are the typical career paths for a CA vs CFA?
The common roles for a CA include Statutory Auditor, Internal Auditor, Tax Advisor, Financial Controller, Management Accountant, and CFO. And, the common roles for CFA include Risk Manager, Portfolio Manager, Equity Research Analyst, Investment Banker, and Wealth Manager.