CFA in India: Rising Demand, Lucrative Careers, and Top Employers | Your Guide to CFA Success

CFA as a course has grown in popularity over the years, particularly in India. For the previous seven years, the number of applicants registering for CFA has increased by 30% year on year, and India is now the third largest market for CFA after China and the United States.

This increases competitiveness among candidates, both in terms of passing the exams and landing a job. It is safe to conclude that the number of job seekers in the industry has increased, but finance companies have only just begun to flourish in India.

According to the NSE (National Stock Exchange), only 2.3% of the Indian population has invested in capital markets, whereas the ratio in the United States is close to 78%. Imagine the amount of capital that will flow into capital markets when the Indian people gradually shift their money from savings and other asset classes to capital markets.

As a result of all of these data points, it is easy to deduce that there will be a high demand for qualified finance specialists in the near future.

What after CFA?

After completing the CFA, you will be able to work in a number of financial job categories. Investment banking and stockbroking are two of the most popular careers for CFA charter holders. 

A CFA's beginning salary ranges between INR 6 to 8 LPA on average. With adequate expertise in asset management and portfolio management, you may become a Hedge Fund Manager, earning INR 15 lakh per annum. 

There are various advantages to becoming a CFA. A CFA can work in India as well as other nations such as the United States, United Kingdom, Singapore, Hong Kong, and the United Arab Emirates. Indian firms such as Motilal Oswal and ICICI Securities compete with foreign firms such as Goldman Sachs, Morgan Stanley, and the Big 4 (KPMG, Deloitte, EY, and PwC). 

CFA Salary in India

We all know how well the banking sector pays; it is one of the highest-paying industries. In the United States, the average pay for a banker with a reasonable amount of experience working for any large conglomerate corporation is far beyond USD $ 200,000.

In India, a CFA charter holder with 15+ years of experience normally earns a minimum of INR 50,00,000 per year. The nicest aspect of CFA is that recognition begins at level 1 and you can begin working while studying for levels 2 and 3.

Salaries rise in lockstep with advancement up the corporate ladder. In tabular style, the following data shows the wages that a CFA Candidate receives after passing various levels of examination.
 

CFA Institute Compensation Study in India

Key Points from the Estimations and Insights:

1. Around 25,000 individuals take the CFA Level 1 exam annually, with approximately 45% passing, resulting in roughly 11,000 successful candidates.

2. These candidates continue to the Level 2 exam, where about 40% pass, resulting in 4,400 progressing to Level 3.

3. Approximately 40% clear the Level 3 exam, leading to around 1,800 new CFAs each year.

4. Many CFAs aim for roles in Research (Buy Side or Sell Side) and Investment Banking (IB).

5. In India, there are approximately 42 Mutual Fund buy-side companies, each with around 20-25 analysts, totaling around 1,000 professionals.

6. There are roughly 100 Sell-Side Brokers or companies in India, with 20-25 analysts each, equating to about 2,500 people.

7. India has about 100 notable IB firms with 15-20 analysts each, totaling around 2,000 professionals.

8. The entire industry consists of roughly 5,000 professionals, with minimal attrition.

9. Annually, around 2,000 individuals pass Level 3, adding to the talent pool. This doesn't include MBAs without Level 3, those with 0-2 years of experience, FRMs, CAs, and graduates from prestigious institutions like IITs and NITs.

10. The job market is favorable for employers, leading to potential lower salary offers, typically in the range of 6 to 10 LPA (Lakhs Per Annum).

11. Candidates should be well-prepared for interviews and aim to secure positions for the valuable exposure they offer, rather than focusing solely on salary considerations.

12. It's advisable to seek opportunities wherever they arise, including live projects, courses, and competitions that allow you to work on market-related tasks and modeling without being overly concerned about initial salaries.

Companies in India Actively Seeking CFA Professionals

This information has been compiled from multiple sources, including the CFA Institute career website, as well as popular job platforms like Indeed, Monster, Naukri, Glassdoor, LinkedIn, and others.

Prominent Employers Actively Seeking CFA Qualifications Include:

1. JP Morgan Chase and Co. (JPMC)

2. United Bank of Scotland (UBS)

3. Royal Bank of Scotland (RBS)

4. HSBC

5. Wells Fargo

6. Citi Group

7. Morgan Stanley

8. Leading Indian banks such as HDFC, Kotak Mahindra, and ICICI

9. Barclays

10. Bloomberg

11. Carlyle Group

12. Blackstone

13. Goldman Sachs

14. Fidelity

15. Major consulting firms like Deloitte, EY, KPMG, and PWC

16. Standard Chartered

17. Jefferies

18. Bluecrest Capital

19. General Atlantic

20. Deutsche Bank

21. Bank of America

22. Merrill Lynch

23. BNP Paribas

24. Bajaj Finance

25. Nomura

These prestigious firms actively recruit CFA Charterholders, with CFA professionals making up a significant portion of their workforce, ranging from 1% to 6%.

Key Roles Offered by Top Employers:

These roles primarily revolve around the capital markets and span various asset classes within the financial market. Candidates typically start in entry-level positions early in their careers and, upon attaining their CFA Charter, can progress to mid-level and executive-level positions.

It is highly recommended to pursue internship opportunities in these roles at the outset of your career. This hands-on experience is crucial for gaining a comprehensive understanding of the roles, their associated responsibilities, and the industry as a whole.

Some of the Most Sought-After Roles Include:

Buy-Side Equity Research, Research Analyst, Portfolio Management, Risk Management, Financial Advisory, Consultancy, Trading in various asset classes,  Investment Banking, Accounting/Auditing, Corporate Finance, Private Equity/Venture Capital, Merchant Banking

These roles also happen to have a substantial number of CFA professionals currently active within them.