There is a lot of debate and contest over CFA's significant role in corporate finance and its outcome will dictate the relevance of small business accounting outsourcing firms. The discussions are far-fetched because some individuals tend to rubbish the position of the substantial role CFA plays without a deeper understanding of what it is.
In simple terms, CFA is an acronym for a Chartered Financial Analyst. It’s an international professional course offered by the Institute of CFA, which certifies trainees who successfully pass the three levels of exams.
In its entirety, CFA remains an adorable title that individuals interested in the financial and investment sectors miss at their peril. It's equally important in the two sectors even though the candidate is sometimes advised to pursue Master's degree in Business Administration(MBA) or even the Chartered Alternative Investment Analyst(CAIA) as a supplementary to it.
Technically, it can demolish MBA easily considering its intensive financial background, and this explains why its exclusively best for mutual funds, hedge funds, management of assets as well as institutional investments such as retirement funds and pensions. Additionally, the much excited about MBA is only instrumental in business networking and recruitment of opportunities in the business. It never materializes anything more to the industry, and this is where the latter comes in and carry the day.
Sincerely speaking, MBA is a filter-like tool used in the recruitment of corporate jobs after which has no any other choice but to invite a CFA specialist to get things going in the business or company.
An analysis of the CFA curriculum reveals that the course majorly focuses on the valuation principles and techniques of financial securities. Minimal attention goes to the other fields related to finance. This only means that it focuses on its priorities, implying that trainees a fully charged on financial issues while half-baked on other matters related to finance.
Way forward for new entrants
For those who wish to join the corporate industry through job application, attaining Master's degree in Business Administration is the best choice one can consider. However, CFA is way cheaper and equips the student with intensive knowledge of finance; its specialization on its own!
For a long time, CFA has been the primary qualification for those seeking managerial positions and roles. Furthermore, additional career opportunities in the finance sector created the necessity of the CFA certification for applicants to get the jobs in the respective areas they apply for. There is proof enough that it will improve the corporate finance sector in the industry.
Management of Portfolios, Hedge Funds, and Equity Search
Professionally, taking the CFA career path never hurts. It’s a giant form of specializations in the corporate finance that entirely focuses on the management of capital, budgeting for the companies, leveraging as well as stock exchange.
Statistics at the CFA institute already show the excellent progress of the certified professionals. The data shows that the 22% of the global CFA professionals are portfolio managers and this figure rose slightly closer to America's CFA which stands at 23%.
Coming up second was the research analyst that garnered 15% in the entire world and 18% in the united states. However, it's quite unfortunate that the other specific career functions and duties didn't manage to garner percentages higher than 7. However, CFA professionals are instrumental tools that can't exit the stage because the financial industry can't allow it.
On the other hands, hedge analysts comfortable handle duties performed by equity searchers. They, therefore, can be used interchangeably. However, it's important to note that the CFA design defends the credentials of its professionals attempting to indulge into buy-side investing, a scenario which is not a corporate finance activity by default, depending on your origin. For instance, in the united states, corporate finance is a synonym of financial analysis, accounting, and planning while in the UK, it stretches to investment banking as well as hedge fund activities.
This explains the reason as to why these professionals still thrive and small businesses, through outsourcing firms, hire them whenever deemed necessary.