CFA vs CFP: Which certification should you choose?
Bengaluru-based Abhinav Jain (34) completed his B Tech and started working as a chemical engineer in 2012. But his passion lay elsewhere – in the financial services industry. He heard about the chartered financial analyst (CFA) certification, which comprises three levels (exams), and took the first one in 2018. He then found out it would only get him entry-level jobs and that he would need to complete an MBA in finance, too. He couldn't start afresh, so he continued with his old job, eventually quitting in 2022 to become a mutual fund distributor.
«Thanks to my engineering background I had a great network of working professionals with decent salaries who could invest a significant amount each month. I could build a decent SIP (systematic investment plan) book in no time,» he said.
In 2023, Jain discovered certified financial planner (CFP) certification. The curriculum appealed to him. «I could get an in-depth understanding of how to do financial planning. I have completed three modules and I expect to finish all my exams by March 2025. I'll be certified only after I have three years of experience in financial services,» he said. “CFP certification will add value to my profile and boost my existing practice. I will complete my CFA, too, but the eventual plan is to become a Sebi-registered investment advisor," he added.
Like Jain, many people are confused about whether CFA or CFP is right for them. Both certifications have different objectives, which we’ll now explore.
Mumbai-based Animesh Hardia (34), a mechanical engineer, worked as a technical consultant in a supply chain company before changing his career by taking the CFA exams in his early twenties. «I decided to do it because I could see it would give me a wider
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