Are the CFA Exams Worth It? (A Charterholder Responds)

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Is the CFA Program worth the effort?
The CFA Exams, Level 1, Level 2, and Level 3, can require over 1000 hours of study time.
Many people end up passing these exams and still struggle to find jobs in the investment management industry.
The CFA Program does not have many job search tools built into it. You still have to network, learn financial modeling, learn about current events and investing, and be able to interview well for the job. The CFA is not the golden ticket some people make it out to be, and people should go into the program knowing this.
The number of charterholders is increasing faster than the number of jobs in asset management. Passive investing, fee compression, and consolidation in the industry are further eliminating jobs. So the bottom line is you have more Charterholders competing for fewer jobs.
Does this actually mean the CFA Charter is losing value? Not necessarily
I think It’s a similar trend to college degrees. 50 years ago, very few people went to college, so if you did, it guaranteed you a good job. Now, not so much, the number of people going to college has increase much faster than the supply of jobs that require a degree. So many people who went to college are in jobs that don’t require a degree.
So if you want a traditional job in the investing industry, the CFA is becoming more of a bare minimum requirement. You could argue this is making the Charter more valuable for certain careers like portfolio manager, because you basically have to have it.
This also means even if you pass all 3 exams, you might end up in a role that doesn’t necessarily require the charter. Roles like Investment banking, commercial banking, some consulting roles, risk management, wealth management, Corporate finance, sales. These fields usually don’t require the Charter.
But even if you do pursue these other paths, the CFA can still help you a lot, because it’s less likely your competition will have taken the CFA, you’ll stand out out more in that group. Is the 1000 hours worth it for everyone in these other fields? Maybe not. It depends on how much you intrinsically value the knowledge gained in the CFA. If you’re only in it for the job and the money, probably not. If you’re genuinely curious about investing, it very well might be.
Here are the 3 biggest benefits of the CFA Program
1) It’s a structured program to broadly learn about investing. Is the most comprehensive program out there on this topic, you will learn a lot.
2) It’s a Signaling device - you are signaling to employers that you are passionate about investing, and that you have the discipline required to pass these tests. It still is the strongest credential in the investments industry, it does make your resume stronger
3) You join the network of Charterholders, charter holders may be more willing to talk to you help you out if you also have the charter.
But the absolute best reason to do the program is you want to genuinely want to learn the nuts and bolts of investing. You want the tools to figure out how much Stocks, bonds are worth, and how to manage money. While mixing in some economics, and data analysis.
So Ask yourself, Are you genuinely interested in the financial markets? Do you read the Wall Street Journal for fun? Do you talk about investing with your friends for fun? This exam is brutal, and if you hate every minute of studying, ask yourself, if learning this stuff is so painful, are you actually going to enjoy a job that requires this knowledge?
If you really do enjoy investing, I think generally it usually is worth it. For me I think the material was worth learning no matter what. I’m more comfortable managing my own money because of what I learned, I understand current events much better, I like to talk about stocks, so I’m glad I did it. Any career benefit is just the cherry on top. But that’s just me
#cfa
- TIMESTAMPS -
0:00 Intro
0:26 Concern #1
1:57 Concern #2
4:33 CFA Program Benefits

[@JoeMaule]

Do you feel the CFA is worth it for you?

[@jirensama1622]

I'm a level 2 candidate and i really feel CFA has had a huge impact on who I, am. It has changed me so much in terms of persistence and hardwork determination. I really hope I'll be blessed with being a charterholder. I'm really grateful for finding it.

[@JoeMaule]

Thank you for sharing. I agree, the program can help candidates develop a strong work ethic and bring a real sense of accomplishment.

[@shaheryarhabib5865]

have you passed the cfa level 2 exam....

[@MSupreme7]

I agree with your take 100%. knowledge is its own reward, career opportunities the charter may yield are an added bonus.

[@raj1838]

Great video mate

[@TriggeringOpinionsandFacts]

About to fail level 2 tomorrow morning (48-58% mock scores lol) but the CFA if anything should show your persistence. You have to be able to sell your story. Level 2 gives you all the information you need to really intelligently speak about markets. Of course you have to watch the news but still. I’d argue it’s worth it. After I fail tomorrow I have my first ever regression forecasting project because statistics doesn’t scare me anymore. There’s asset management, research, all sorts of roles to get into. Do this for yourself first more than anything. Otherwise just study equity and fixed income valuation maybe some quant and sell it in your interviews and you’ll be fine

[@alexhachey1806]

Did you end up failing?

[@rohan722]

Did you pass

[@abhishekbal399]

Nice vid Joseph. You made the point succinctly. - Abhishek Bal, FRM, CFA

[@janreichenbach265]

In the job market, it's a classical supply / demand situation. The Wall street top employers like Goldman Sachs have much more applicants than open positions, and no matter what the educational background, many applicants will be rejected. Sad but true.

[@samuellen1212]

Just subscribed to your Channel. Thank you for keeping it real. I am new to this and I have no background or knowledge whatsoever about Finance. If that's the case, where do I start? Have a great day!

[@JoeMaule]

Thanks Samuel! Websites like Wall Street Oasis are helpful for learning the basics. There are also communities on Reddit for different finance career paths you may find interesting.

[@kirandeepatwal6280]

World is changing very fast and no degree or certification can guarantee life long job security. The only trait that can ensure job security is the habit of lifelong learning.

[@massimot2007]

Do you think I can do the CFA While working full time ? And how many hours should I study per week for level 1 for example any insight would help thank you . Great video !

[@JoeMaule]

Most people complete the program while working full time. So it's definitely possible but it's a major commitment. The usual estimate is about 300 hours of total studying per level to have a good chance at passing.

[@dees900]

I'm a data scientist. I see investment firms recruiting data scientists. Would a CFA makes sense for someone with an engineering and computing background?

[@JoeMaule]

It could make sense. It also might be possible to join an investment firm without it. If you are focusing on giving the investment team support with your knowledge of data and analytics, the CFA might not be needed. If you want to make the investment decisions yourself, the CFA might make more sense. I’d try speaking with more people at these firms to get a few different perspectives.

[@SabbirHossain-nw4zz]

Hello I'd like to know Is it worth in job market having completed just CFA level 1?

[@ivornevin4687]

Why would there be a further two levels if CFA 1 is satisfactory?

[@georgepolanco]

Thanks! now i confirm that i don’t want to do it.

[@nicolasdominguez6019]

Good less people with more demand for those have it lol this guy has clue what he is talking about

[@user-sd4ke9ob5i]

I am a college grad and planning to get CFA 1. I am a finance major and I want to land an entry level analyst job. Will CFA 1 necessary or goof to have? What can I do in addition or other than that?

[@snooz2158]

Not much if you dont do lvl 2,3 , also, of your in canada do the cim

[@user-sd4ke9ob5i]

@@snooz2158 what’s CIM? Also thanks for the reply 🤝

[@snooz2158]

@@user-sd4ke9ob5i chartered investment manager, a csi course for portfolio management, not really back office analyst type course but gives you discrtionary rights after 4 years, where you from brother?

[@user-sd4ke9ob5i]

@@snooz2158 great! Thanks for the suggestions brother. I live the USA. doing Finance undergrad

[@ewocn]

I'm into market trading(Equity F/O) and thinking about perusing CFA... will it benefit me or should i try something else ? All I'm wishing is for to learn the depth of the market ...Hoping for your answer...

[@JoeMaule]

The CFA Program will help you understand the theories behind how different financial assets are valued based on fundamentals. I'd say level one covers everything you'd find in an undergraduate finance degree, level 2 is like a masters in finance, and level 3 is about wealth management / asset allocation / financial planning. It's a structured program to learn about all kinds of investments. It should help with trading, but if you're looking at a specific career path, I'd ask people in those roles if they personally think it's worth the work. The program does take a lot of time and mental energy.

[@ewocn]

@@JoeMaule Thank you for the quick reply Surely your explanation helped me...I guess I'll go with it alongside... because it's very much what I'm looking for...😊

[@rishiverma920]

is the CFA + MBA WORTH it?

[@jobanpreetsingh1630]

in the indian scenario with a PGP from IIM A or C, it is 🔥🔥🔥

[@majidareef3555]

Is CFA a good qualification for Investment banking role? Or do you need a MBA?

[@JoeMaule]

For Investment Banking, I believe an MBA is the better option because it comes with a more structured recruiting program. The CFA can definitely help too, but if you only have time for one, I think the MBA offers a more direct path. For picking an MBA program, I'd look at employment statistics from your target schools to see how many graduates get into Investment Banking upon graduation.

[@majidareef3555]

@@JoeMaule thanks for your response

[@Nanix1991]

CFA is not worth it whatsoever, rarely any employer write it in their job requirements...

[@Al-dj3wp]

Let me guess, you are not a charterholder.

[@Nanix1991]

@@Al-dj3wp I passed the 3 levels. I even know a loser (fired from accounting from a big4 ) who spent every hour of his free time to study and pass level 3 so it is shit

[@Al-dj3wp]

@@Nanix1991 There's no degree or charter that can guarantee a job. CFAI is the first to tell you that. When somebody isn't bright or have all the other tools to succeed, a charter is not going to change anything to his situation. I think it's just absolutely wrong to say the CFA is worth nothing. And yes, there are plenty of employers who list the CFA/FRM/PRM as nice to have in their job descriptions.