CFA vs CMA - Which is Better?

CMA is a corporate finance certification that helps students advance in their career as finance professionals. Meanwhile, CFA is a course for financial analysts and people interested in researching and managing stocks and assets.

Both the Chartered Financial Analyst (CFA) and Certified Management Accountant (CMA) are prestigious certifications that open doors to rewarding careers in finance. However, choosing the right one depends on aspirants specific career goals and interests.

Table of Contents

• CMA vs CFA Course Highlights
• CMA vs CFA Overview
• CMA vs CFA Eligibility
• CMA vs CFA Benefits of Pursuing
• CMA vs CFA Syllabus
• CMA vs CFA Career Prospects
• CFA or CMA Which One to Choose?

CMA vs CFA - Course Highlights

One of the essential courses in portfolio financial analysis is Chartered Financial Analyst. Chartered Financial Analyst (CFA) is a broad field of study that focuses on equipping students with investment and financial management skills and knowledge. Because CFA is a self-study programme, candidates are not required to attend regular courses.

CMA vs CFA - Overview

The CMA is a financial accounting and strategic management qualification. Certified Management Accountant (CMA) is a worldwide recognized certificate that focuses on corporate finance and management accounting. Students may expect to work in a variety of firms and have a highly fulfilling career. CMAs work in an organization's accounting, corporate finance, and strategy teams.

The CFA course is a globally recognized professional qualification that assesses and certifies financial analysts' competence and integrity. People interested in stock research, hedge funds, asset management, and other investment management should take this course. The CFA charter is widely regarded as the gold standard in financial analysis and is one of the most prestigious awards.

Read More: CFA Pass Percentage

CMA vs CFA - Eligibility

CFA and CMA are certifications that have rigorous courses, and students must fully understand if they are eligible to apply for these certifications before proceeding to study these courses. Both courses are generally pursued after graduation and have significant work experience, making them highly competitive and enriched with specialized knowledge.

CFA Eligibility Criteria

Students who wish to study CFA have to fulfil certain criteria to appear for the examination.

• Students must have graduated from a recognized university with at least 50% scores.
• Students can be graduates from any stream and field.
• Students must have gained at least four years of work experience before applying for the first level of examination.

Read More: How to Become CFA?

CMA Eligibility Criteria

• Students must have completed class 12 from a recognized board.
• Students must have gained at least two years of work experience before applying for the first level of examination.

Read More: CMA Eligibility Criteria

CMA vs CFA - Benefits of Pursuing

Both equally valuable certifications in finance, students may wonder which course is better for them: CFA or CMA? This makes it harder for students as they might not fully understand the scope of these courses and what students stand to gain from them. The courses that students take will affect their career path, and hence the benefits of each have been highlighted below.

Benefits of Pursuing CFA

Scope: The CFA Curriculum is a worldwide recognized programme that gives students a solid foundation in financial analysis. Asset management, equities research, investment management, hedge funds, and other topics are covered in the certification.

Opportunities: CFA is a tough course to crack, and the certification is not just a sign of knowledge but also of determination and great ability to work under pressure. The course opens more opportunities for certification holders and brings them a competitive edge over their peers.

Read More: CFA Study Material 2023

Benefits of Pursuing CMA

CMA is a certification that students can use to accelerate their career growth in the field of finance. This course is essential for students interested in building bigger careers in valuations, capital management, etc.

Scope: The CMA curriculum prepares students for careers in a variety of sectors and corporate responsibilities. The certification enhances one's knowledge of working capital management, financial statement analysis, and valuation concerns, among other topics.

Duration: CMA is a comparatively shorter course than CFA. Depending on the students' ability, it can be completed within six months or take up to 3 years. The IMA requires students to complete the course within three years after registration.

Exam Schedule: The CMA course allows students to take tests on any given day during the testing period. CMA examinations are accessible for testing six months of the year. Because the CMA tests are computerized, applicants may generally complete them on their own time, according to their own schedule. Exams are normally accessible in January/February, May/June, and September/October.

Read More: CMA Exam Pattern

CMA vs CFA - Syllabus

The syllabus of both programs differs due to the difference in the aims and objectives of the courses. Both certifications provide different levels of competency and knowledge on varying subjects that meet the certification objectives.

Subjects in CFA:

• Professional Ethics
• Investment Decisions
• Risk Management
• Decision Analysis
• Corporate Finance
• Financial Statement Analysis
• Internal Controls
• Cost Management
• Performance Management
• Planning, Budgeting, and Forecasting
• External Financial Reporting Decisions

Read more on CFA Syllabus and Subjects

Subjects in CMA:

• Portfolio Management and Wealth Planning
• Alternative investments
• Derivatives
• Fixed Income Investments
• Equity Investments
• Corporate Finance
• Financial Reporting and Analysis
• Economics
• Quantitative Methods
• Ethical and Professional Standards

Read more on CMA Syllabus and Subjects

CMA vs CFA - Career Prospects

CFA and CMA are highly specialized certifications that have many advantages in the job market. Students who complete this course have a great competitive advantage over other students in the field of finance.

CMA Job Profiles

Aspirants can bag a package of INR 12 to 20 LPA concerning the job and the candidate's qualifications. A few of the options are listed below in the given table

Read more on CFA Salary

CFA Job Profiles

The salaries for these jobs rises exponentially, with CFOs and CIOs expecting to earn over INR 1 Crore per annum by mid-careers. These fields are, thus, some of the best career options for students who are interested in the field of finance.

Read more on CFA Salary

CFA or CMA - Which One to Choose?

Students must consider the following factors before enrolling in CFA Course to understand its benefits.

Job Profile: If students want to work in equities research, investment banking, or portfolio management, they'll need a CFA. CMA certification is intended to help students enhance their capacity to make strategic business decisions based on the organization's financial status. The focus has been to learn about management accounting in particular.

Demand: Accounting is seen as a must in organizations. Therefore, the CMA certification is in high demand always and across different industries. The role of a CFA is an indispensable part of business management, and organizations in public and private sectors employ their services/

Students must analyze the pros and cons of each with care before deciding a career path that they are interested in and are passionate about. These factors have a heavy impact on the final decision, and students can find the best choices for them by studying the differences between CFA and CMA.

Read More: CMA vs MBA