Four high-paying career opportunities for Chartered Financial Analysts (CFA)
If you peek into the world of finance or investment, you’ll find that a chartered financial analyst is widely recognized and respected.
If you have the skills, knowledge, and most importantly, interest in making money and name in the finance market, CFA is your go-to career choice.
Though several choices are available to boost your career in finance professionally, the necessary certifications are crucial.
Therefore, CFA is a viable option that offers every individual cost-effective certification, global recognition, expertise in quantitative methods, and economic or financial reporting.
Aside from getting an advanced degree, working as a chartered financial analyst makes you qualified enough to look over investment management and financial analysis.
Though nothing on a resume guarantees a job, becoming a chartered financial analyst boosts your financial credentials.
Professionals in the industry are well aware of the time and skills required to become a competent CFA. Earning and putting forth hard work demonstrates several qualities like analytical abilities, understanding of work ethics, and financial dynamics.
A CFA with skills and knowledge can secure a job with some of the most prominent players in the finance field.
According to the CFA Institute, there are more than 167,000 CFA charter holders worldwide, and the figures only keep growing.
So, if you want to make a high and respectable income as a CFA, the first step is to take the CFA exam.
Several companies like Wiley CFA can help you ace your exams by teaming you up with experienced instructors, providing study material, and regularly conducting practice exams.
Once qualified, several doors lead you to high-paying jobs and help set up your career. A few options are listed as such.
- Credit Analyst
A credit analyst evaluates the loan applicant’s financial health based on whether their application is approved or rejected.
As a credit analyst, you work for insurance companies, credit agencies, and investment companies to ascertain the financial stability of loan applicants.
Professionals thoroughly review the loan applicant’s past payment history, including if they have missed any payments or have pending debts to clear. Aside from applicants, credit analysts also review different companies’ lending policies.
A loan is granted based on a few protocols which a credit analyst ensures that a qualified applicant is granted a loan.
An expert credit analyst knows how to maintain the best interests of the company they work for and of the customers.
The job’s nature requires you to spend countless hours in front of the computer screen to collect and analyze every customer’s financial data.
A company only extends credit to the customers if it is viable; this is where a credit analyst plays their role by also analyzing the company’s cash flow.
The average salary of a credit analyst depends on the number of experience, clients, the employer they are working under, and the job location.
- Investment Banker
The responsibilities of an investment banker are numerous. An investment banker’s primary responsibility is raising capital for businesses by issuing debt and selling equity.
The charm of a high salary and copious reputation encourages young minds to opt for a career in investment banking.
These highly qualified professionals oversee mergers, conduct thorough research, and prepare every mandatory financial document.
One of the biggest misconceptions about investment banking is that anyone skilled in numbers is suitable for the job.
Some accountants don’t understand that this is only one requirement among several others, including excellent work insight, persuasion capability, hard work, and quick-wittedness.
Issuing debt means selling bonds to investors who after buying a bond, lend money to the issuing company for a determined number of years at a fixed interest rate.
The crux of investment banking is raising money for clients, as discussed earlier. However, let’s have a look at how it works.
Investment bankers additionally help brokers by lending their expertise and assisting them in choosing the best investment opportunity.
Becoming an investment banker isn’t challenging; an MBA is an initial requirement, but a bachelor’s degree or years of experience, depending on the company’s condition, is also considered.
Apart from being a high-paying profession, the salary of an investment banker depends on location and years of experience.
The chances of a salary increase are high considering the bonus and the work performance.
- Portfolio Manager
An individual working as a portfolio manager devises investment strategies for institutional investors. Portfolio managers also go by the job title of wealth managers, financial advisors, and asset managers but focus only on the analytical aspect of investment.
Other than institutions, portfolio managers also work with families that fall under the private client category and are simultaneously responsible for managing investment allocation.
The asset manager follows a pre-determined pathway regulated by an investment policy statement that helps meet the client’s investment goals.
Some portfolio managers create an investment package, whereas others only oversee the client’s transactions.
Based on factors like the client’s risk preference, market condition, and return expectation, a portfolio manager deduces the levels of risk involved in an investment.
To become a qualified portfolio manager, you must understand the market trends and overall economic outlook.
Since portfolio managers must have substantial training, certification, and former higher education, the salary is market competitive. On average, the wages of a portfolio manager are $90,744/year.
- Hedge Fund Manager
Working as a hedge fund manager, you are assigned the role of making investment decisions or placing investments on behalf of clients by incorporating different strategies.
These individuals also work alongside investors in liquidating needs, managing fee structures, and accomplishing investment objectives.
Hedging means reducing risks; for that reason, a hedge fund manager reduces the risk in portfolios without compromising the returns.
With leverage, hedge fund managers increase the return on investment. A hedge fund employs various investment techniques across multiple asset classes to generate a higher return on investment for the pre-determined level of risks.
Among the duties, hedge fund managers routinely conduct market research and analyze trends. To pursue a career as a hedge fund manager, you must have skills like an in-depth understanding of portfolio construction and financial instruments, strong communication skills, and high intellect.
The salary of hedge fund managers ranges from $20,239 to $541,382 a year. The wages are based on experience, knowledge, work performance, and skills.
Conclusion
As a chartered financial analyst, you have access to doors that lead to several opportunities that are high-paying and equip you with the skills to tackle the hurdles in the finance market.
Individuals working as chartered financial analysts apply their expertise in different areas within the global finance industry.
The way to the top is by working on your skill and gaining experience. Investing time and effort pays off when you understand financial topics, stocks, and ethics.
The benefit of all this is that you can apply the knowledge further in different finance professions such as credit analyst, portfolio manager, and investment banker.
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