Difference Between CFA Institute Investment Foundations Program and CFA
The CFA Institute offers the CFA Institute Investment Foundations Program. A candidate can choose to give the exam within six months from their registration. For the CFA exam, one can appear in June or December for the first level and once every year in June for the second and third levels.
The financial services sector has grown by leaps and bounds in the past few years and has increased in complexity. Today, there are thousands of job roles within the finance and investment industry requiring different levels of expertise in specialized areas of finance. For fulfilling the need and validating the capabilities of professionals, some financial certifications have thrived over the years. This article compares the much sought-after CFA Certification Exam with the newly introduced CFA Institute Investment Foundations Program.
However, it might seem difficult for a professional in the first instance to decide which certification would serve their purpose best. Here, we discuss two such certifications offered by the CFA® Institute, including CFA® Charter Holder and CFA Institute Investment Foundations Program, to compare their relative merits for professionals planning to pursue these certifications.
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What is the CFA Institute Investment Foundations Program?
CFA Institute Investment Foundations program is a foundation-level self-study program offered by the CFA® Institute. This program is designed to impart knowledge of investment industry fundamentals and help become acquainted with the professional responsibilities of those working in different areas of the financial services sectorServices SectorThe service sector or tertiary sector refers to one of the portions forming the three-sector model of the economic sector. The businesses in the service industry produce intangible goods in the form of service as output delivering to other businesses or consumers.read more. It primarily covers finance, ethics, and investment-related roles and is suitable for entry-level financial services professionals.
What is the CFA®?
The CFA Program focuses on investment management. The top employers of shareholdersShareholdersA shareholder is an individual or an institution that owns one or more shares of stock in a public or a private corporation and, therefore, are the legal owners of the company. The ownership percentage depends on the number of shares they hold against the company’s total shares.read more include the most respected financial corporations globally, e.g., JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo, to name a few.
Many of these are investment banks, but the CFA Program focuses on the knowledge and skills most relevant to the global investment management profession from a practitioner’s standpoint.
Investment professionals who hold the CFA designation (or CFA charter) meet rigorous educational, work experience, and ethical conduct requirements. Only those who complete three graduate-level examinations, four years of work experience, and annual membership renewal (including ethics and code of professional conduct attestation) are permitted to use the CFA designation. Complementary codes and standards (such as the Global Investment Performance Standards and Asset Manager Code) help enhance this professional distinction.
CFA Institute Investment Foundations Program vs. CFA Infographics
Let us understand the difference between CFA Institute Investment Foundations Program vs. CFA ® with infographics.
CFA Institute Investment Foundations Program vs. CFA Comparative Table
Role of CFA® Institute
Chartered Financial Analysts (CFA®) Institute is one of the most influential bodies working in the financial services sector to bring in greater accountability and transparency by defining standards of global practices in the investment industry. CFA® also offers some of the most prestigious financial certifications to help validate the knowledge and skills of professionals associated with the investment industry.
Industry Overview Industry Structure Industry Controls Ethics & Regulation Inputs & Tools Investment Instruments Serving Client Needs
Ethics & Professional Standards Economics Quantitative Methods Corporate Finance Portfolio Management Fixed Income & Derivatives Equity & Alternative Investment Financial Reporting & Analysis
Portfolio Manager Investment Consultant Wealth Manager Investment Analyst
Strategic Analyst Wealth Manager Portfolio Manager Investment Analyst Financial Consultant
Level I: 41% Level II: 44% Level III: 56% [Source: CFA Institute]
Level I: Feb 15-21, May 17-23, Aug 23-29 & Nov Level II: Feb 22-26, Aug 30-Sep 03, Nov Level III: May 24-26, Aug 30-Sep 06
Exam Requirements
For CFA Institute Investment Foundations Program You Need:
There is no special criterion for the CFA Institute Investment Foundations program regarding educational qualifications and work experience. Anyone can register for it.
For CFA® You Need:
To qualify for the CFA®, a candidate should have a Bachelor’s Degree (or they should be in the final year of a Bachelor’s Degree) or four years of professional work experience or four years of higher education and professional work experience taken together.
Why Pursue the CFA Institute Investment Foundations Program?
This learning program is best suited for entry-level financial services professionals and non-finance professionals planning to enter the investment industry. It also affords the knowledge of global industry standards for the investment industry, making it useful even for professionals working in IT, HR, operations, or sales and marketing roles.
No entry requirements make it less inconvenient for certification to pursue. Above all else, getting accredited from a highly reputed institution helps boost the confidence of a professional in their knowledge of industry practices and enhances their employability in the eyes of prospective employers.
Why Pursue the CFA® designation?
The differentiating benefits of earning the CFA designation include: –
- Real-world expertiseCareer recognitionEthical groundingGlobal communityEmployer demand
The sheer demand for the CFA charter indicates the difference it makes.
More than 160,000 CFA exam registrations were processed for the June 2015 exams (35% in the Americas, 22% in Europe, the Middle East, Africa, and 43% in the Asia Pacific).
For more information, refer to CFA Programs.
Conclusion
Without any entry requirements, it becomes a somewhat easier undertaking, but it is no use opting for the CFA Institute Investment Foundations program as a build-up to CFA®. Instead, it is much better to go in for CFA® Part I for those working in decision-making roles in the investment industry.
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