In India, both of the certification bodies have started to garner popularity because of the increasing demand for qualified finance professionals. Globalization, foreign investment, and the expansion of multinational corporations have created a need for such professionals to manage finances across borders. On the other hand, while ACCA becomes more inclined toward auditing, accounting, and taxation, CFA acquires a specialization in investment management, equity research, and financial analysis. Both qualify for international opportunities and flexibility in patterns of study, but the bottom line is to identify which one best caters to career goals and finance.
What is ACCA?
The Association of Chartered Certified Accountants is known worldwide as ACCA. As such, this particular global qualification fuses considerable knowledge in accounting and auditing, financial management, and taxation. ACCA members are in great demand by multinational companies, Big Four accounting firms, and leading Indian corporations.
Key Features of ACCA
- Worldwide Recognition: ACCA is accepted in more than 180 countries such as India, the UK, Singapore, Canada, and Australia among many others. In the Indian context, ACCA more recognition means increasing job prospects in both domestic and international firms.
- Diversity of Topics: The ACCA certification entails a wide range of subjects such as Financial Management, Governance, Audit, Dental Law, Income Tax, Management Accounting, and Business Ethics. This makes ACCA perfect for students who want to have a comprehensive view of finance.
- Linked with Flexibility of Learning and Examinations: ACCA has a flexible study policy. Students can schedule their examinations whenever they are ready and achieve the qualification while working or taking another course for example a B.Com or MBA.
- Practical Experience Requirement (PER): To achieve ACCA membership, students must finish relevant work for at least three years. This field experience is essential in narrowing the gap between theory and practice.
Advantages of ACCA for Indian Students
- The ACCA course considers that students should be allowed to work as they study professional qualifications. This advantage in the labor market opens up employment opportunities such as financial accountants, tax consultants, auditors, and finance managers amongst others.
- The worldwide reach of the ACCA allows Indian professionals who have completed the ACCA qualification to seek jobs in other countries, especially in the UK, the Middle East, and South-East Asia.
- Most of the big Four accounting Firms (Deloitte, PwC, EY, and KPMG) services actively seek out members of A.C.C.Since these companies are all present in India providing many job opportunities for those willing to register with A.C.C.A.
What is CFA?
The Chartered Financial Analyst (CFA) qualification is the foremost respected credential for professionals who are involved in investment management and financial analysis. It is most suitable for people who aspire to be investment bankers, equity analysts, portfolio managers or strategists. CFA addresses such subjects as portfolio management, financial analysis, asset valuation, and ethical standards of practice.
Key Features of CFA
- Purposeful Investment Orientation: The CFA syllabus is primarily based on financial markets overview, investment techniques, portfolio principles, and code of conduct. Hence, CFA comes as the best option for individuals who want to pursue careers in investment banking and asset management.
- International Appreciation: CFA is appreciated across global financial institutions. In India’s financial services sector, interest among recruiters for CFA holders is increasing in private equity, venture capital, hedge funds, and mutual funds.
- CFA Program Outline: The CFA program also comprises three levels of examination, which tend to become more complex as a candidate progresses. Each level ascertains one’s understanding of ethical conduct, quantitative techniques, macroeconomics, financial statement analysis, and investment management.
- Experience Requirement: The chartering process involves a work experience requirement of four years just like in the case of ACCA.
Advantages of CFA for Indian Students
- CFA is one of the most recognized qualifications in the financial services sector in India, especially among individuals working in equities, asset management companies, and investment banks that are into acquisitions, mergers, and other corporate finance.
- For students planning to go into investments with financial giants like JP Morgan, Goldman Sachs, or Morgan Stanley, pursuing a CFA qualification can improve their chances a great deal.
- CFA’s strident emphasis on investment analysis and portfolio management differentiates it from other flat finance qualifications thus making it suitable for specific jobs in finance.
Key Differences Between ACCA and CFA
There are several key differences between ACCA and CFA, as both are so knowledgeable courses about Finance. Both Courses have high demand in the Industry of Finance and Accounting.
| Factor | ACCA | CFA |
| Primary Focus | Accounting, auditing, taxation | Investment management, financial analysis |
| Number of Exams | 13 exams, across 3 Levels | 3 levels |
| Exam Frequency | Exams held four times a year | Exams held twice a year (except Level 1, held four times) |
| Duration | 3-4 years | 2.5-4 years |
| Cost | INR ₹2- ₹3 lakhs (approx.) | INR ₹2- ₹5 lakhs (approx.) |
| Global Recognition | Over 180 countries | Globally accepted in finance and investment |
| Ideal Career Path | Accounting, auditing, taxation, finance management | Investment banking, portfolio management, equity research |
Eligibility Criteria for ACCA: In India, candidates wanting to earn the ACCA must have fulfilled the ACCA Eligibility that is completed at least Class 12 (10+2) schooling from any board with a minimum of 65% in mathematics or accounting and one other subject and 50% in the rest. Certain papers may be exempted by the ACCA qualification depending on the candidate’s prequalifying credentials such as Chartered Accountancy (CA) or graduation. Besides, a candidate is required to undergo three years of practical training and take 13 examinations to become an ACCA member.
Eligibility Criteria for CFA: In India, to register for the CFA program, every candidate must hold a bachelor’s degree or must either be in the last year of their bachelor’s degree or have professional work experience of 4 years. The education and work experience of the candidate combined should be four years as well. Candidates must finish this degree completion before attempting Level 2. In addition to the above, the completion of the CFA charter also requires a candidate to have four years of work experience involved in decisions about investments.
Salary Expectations in India
The salaries of ACCA and CFA degree holders are fair and competitive in India, although the extent of variance is based on job title, geography, and experience.
- ACCA Salary in India: The average salary of fresh ACCA associates in India is between INR ₹5- ₹8 lakhs per year. However, it can go much higher, with senior ACCA members earning as much as INR 15-₹25 lakhs and above in huge multinationals, banks, and consultancies.
- CFA Salary in India: Fresh CFA graduates can earn salaries in the range of INR 6- 12 lakhs per annum. However, for mid-level to senior positions such as portfolio manager or investment analyst, the salaries tend to be between INR 20- 30 lakhs or above in the case of top investment firms such as hedge funds, investment banks, and asset management companies.
Difficulty Level
- ACCA: The ACCA membership merits consideration because it is quite difficult but not impossible, and the ACCA syllabus covers a wider variety of topics & Concepts. The option of when to sit for the examinations also aids in the attainment of their academic goals by the students. Most ACCA examination sessions have a higher success rate as opposed to CFA.
- CFA: CFA has earned a reputation as a professional qualification due to its demands and the depth of financial analysis it entails. Results and particularly pass rates for the CFA levels are quite disappointing with level 2 and level 3 pass rates being the lowest, making it among the hardest professional qualifications in finance. Any successful candidate who achieves this must have a good background in finance and investments.
Which One Should You Choose?
The choice between ACCA or CFA mainly rests on your career objectives:
- ACCA is ideal for someone who wishes to take up financial roles in auditing, taxation, and financial management, among others. This is because the profession offers, flexibility, a broad spectrum of career opportunities, and international scope making it appropriate for individuals who do not want to be limited in terms of their career prospects.
- On the other hand, it is the other way around for those who enjoy the financial markets, investment banking, and asset management. In this case, CFA is the better option. Its relevant syllabus and its standing in the investment world make it possible for the candidate to have a focused career in finance.
In India, the above qualifications are recognized and seen as an asset but they cater to different industries. While ACCA suits candidates seeking positions in corporate finance, audit, and management, CFA is the recommended qualification for those interested in investment and financial services.
Conclusion
Global finance is growing by leaps and bounds, especially for Indian students with ACCA or CFA qualifications. While ACCA career progression has limited availability only in finance accounting or management, it is appropriate for those desiring cross borders career opportunities in any of the other fields. In contrast, CFA is the standard of excellence among investment practitioners, particularly for those seeking careers in asset management, portfolio analysis, and investment banking. Before choosing a designation to pursue, evaluate your career aspirations, areas of interest, and the skills you possess.
