Benefits of a CFA®? Debating taking the exams
In my first year out of school and currently working as a research analyst. looking to as i gain more experience, work as an analyst in a hedge/mutual fund. Debating going after the CFA® and was wondering if anyone had any feedback on how it may have impacted them following earning the charter? jobs, salary? what benefits you might have realized from it? Thank you
If you are debating taking the exams before sitting level 1, I would probably recommend skipping it. Haven't seen many people complete the program if they weren't fully committed to it going in.
I see what you’re saying but I’m not sure I totally agree with that advice. This is all just my opinion, but I personally think there are real pros and cons you have to weigh and that it is not a no brainer for many people in HF analyst roles at least. In my experience, it is much more valued on the sell side overall and on the buyside in IR/marketing and in asset managers. It also tends to help a little with pedigree with certain investors as you get more senior because of the difficulty of the program and the ethical component.
In terms of actual knowledge, it is a lot more helpful if you didn’t major in finance in undergrad. If you did, L1 is basically like a review of undergrad and 2/3 go beyond into senior elective/grad school type of stuff. However, there will be a lot of shit in there that you’ll memorize and then never look at again in many roles. The overlap is a double edged sword, because you’ll need to allocate less time to it, but it will get repetitive at times.
However, you have to ask yourself whether learning this and getting this brand on your resume is worth ~700-900 hours of your time (and do the math on what that implies before you start because most people don’t seem to fully think that through). That is probably not something anyone on an anonymous forum can tell you. Alternatively, think about if you allocated that time to your job and other parts of your life. Would you be better off? Maybe/maybe not.
Full disclosure: semi-jaded charterholder who passed on first attempts
This sums up the major decision points very well. It definitely isn't an easy decision and the amount of time required makes it necessary to weigh both options carefully. The opportunity cost is an important aspect to consider, especially if it isn't significantly additive to your current career track.
One potential benefit i'd add is added career flexibility as a junior. CFA would likely make a switch to other areas of the investment world (AM, E&F, Family Office, etc) a bit smoother if you're coming from a hedge fund (moreso if its a smaller unknown shop). The diversity of curriculum and the overall brand is valuable earlier in your career, which could be useful to you if your fund blows up and you need to make a quick switch, or you have an interest in changing environments in the next few years.
If you are at an asset manager/mutual fund and want to stay in that lane, I highly recommend it. At my firm (large active equity manager), about 50% of the analysts/PMs are charterholders and that % would be higher if you strip out the older generation who established their careers decades ago and have no need for it.
Disclosure: Charterholder, 4 years in AM
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