My CFA Story

Hi all, I am posting in AF for the first time. Just wanted to share my story and hope it could be helpful for others. I completed L3 in 2011 and finished all three levels on my first attempt. My story(I am posting this in L1 forum as well): After completing my undergrad degree in commerce (from a college in India), I worked in trading operations for a big investment bank’s India operations for 2 years. However, I realized that a higher qualification is a requirement for better opportunities in Finance. I chose CFA over MBA since it was more specific to finance and investments and I also did not want to burden my family with expenses related to MBA. I took the decision to quit my job a few months before giving my Level 1 exams in June 2009 since 60+ hours at work was taking a toll on me and I could not focus on my CFA studies. For the next 2.5 years I worked at a local firm in my hometown where I was a financial advisor. I spend very less time at office and dedicated this period for CFA, staying at home. Apart from CFA studies, I also spent time watching movies, hanging out with friends and travelling to avoid the fatigue associated with full-time studying. In spite of having a lot of time to study, I chose schweser over CFA since I found CFA books long and not focused on the exam. Studying from Schweser gave me time to complete a couple of rounds of revision before exam-day. But I made it a point to do all end-of-chapter and blue-box problems from CFA books. I also made notes on my laptop while studying which was very useful towards the exam-day. Attempting sample exams were critical for L3 but not so much for L1 and L2. Looking for a job in August 2011 after passing Level 3 was a difficult task due to the economic crisis and recession fears. I did not get any interview calls from the big banks or money managers. My experience-gap of 2.5 years did not help either. But I managed to find a job as an equity analyst for a KPO firm (Knowledge Process Outsourcing) in India. We prepare equity research reports, financial models, market updates etc. for investment banks and money managers across the world. Just to give you folks an idea, I make around $1000 a month, working 45 hours a week. This is not my dream job but it is better than my trading ops job which was $500/month working 60+ hours per week. I would eventually like to do something more interesting and rewarding, like working for an asset manager. Please let me know your thoughts and comments on my story. Thank You!

you mention an issue in finding a job was the 2.5 year gap? How could being a financial advisor be considered a ‘gap’…it’s relevant work experience isn’t it? For anyone reading this story, I would highly advise against quitting a job to study for CFA exams…it definitely defeats the purpose of doing the exams, because as he talked about, experience is very important…Then again, if you’re doing some horrible job then hey maybe that’s a different story lol Overall, gl293 I am very pleased to hear your sucess story. Glad you finally ended up with an equity research role…I can’t ever imagine making that kind of money, but obviously the cost of living must be very small there so it’s all relative I’m sure. Keep up the hard work, and you’ll do great. Congrats again on passing level 3. I’m also going to be writing level 3 in June, and am currently working in a buy-side investment management firm…My role is nothing spectacular though, so I’m hoping if I pass level 3 it will give me a potential ability to transition into an analyst role (or at least a role that counts towards the CFA work experience requirements)

My role as financial adviser did not count as relevant experience for the jobs I was applying for- equity research, portfolio management etc. As a financial adviser, I was only buying//selling for clients on the basis of research reports and recommendation from brokers. However, I think it should count as CFA experience since I was involved in investment decision-making. I agree with you that quitting my job and doing CFA almost full-time was not the most ideal thing to do. But there are so many people out there who wants to pass these exams so desperately. I am sure most of you agree that CFA is considered more valuable than MBA for investment-specific jobs. So I just wanted to express my point of view that doing 2 years CFA instead of MBA may be worthwhile for some people. IMO managing stress levels at work or while studying is very important. So CFA studies along with 60+ hour job was not my cup of tea…

Understandable! That’s the largest reason why I’m happy with my current role because there is zero stress and very short work week… it’s a great position to maximize time to study without the stress and still being able to enjoy some free time. I hope the CFA is valuable - I think the most value that’s added is when you actually become a Charterholder (have 4 years of relevant work exp)…many people complain about how the designation hasn’t helped blablabal BUT they are only actually referring to having passed some of the exams and not actually receiving the designation.

I have not got the charter yet…i need more work exp before i can apply. But yes, passing all 3 exams does add a lot of value. As we studied in Ethics- CFA does not prove that you are smarter than anyone, but it definitely shows your commitment to the profession. Also, the broad(and sometimes deep) understanding of accounting and investment concepts will be useful at work. I have realized that people at my equity research firm respects me for having passed all three levels in spite of the fact that I am not superior to them in any way. Good luck with your studies BuySideWannabe…I am sure you will pass with a consistent, determined effort and a cramfest towards the end!

“I spend very less time at office and dedicated this period for CFA, staying at home. Apart from CFA studies, I also spent time watching movies, hanging out with friends and travelling to avoid the fatigue associated with full-time studying.” I suggest you don’t tell your future potential employer that. Part of the exam that makes it tough is that people have to study while working. It’s not really meant to be taken full time. That’s what makes it more valuable in many ways compared to an MBA as you are getting full time experience and shows your dedication studying on the side. Studying for this June exam for a full year!? and 50 hours a week is not practical.

Hi Guys,

Just wanted to post an update on my life - (a) I quit my equity research job and has now joined my family business (b) I got my CFA charter

Takeaway - maybe it’s not such a good idea to quit a job and do full-time CFA studies! However, i am very proud of my CFA badge and the knowlede I have gained. If you are in finance, I would recommend it over anything other than top-10 MBA.

Regards.

Congratulations gl293. Keep the family fires burning…

Quite obvious there

Aye - some advice to other prospective candidates. Do not quit your job for the CFA - its benefit over an MBA is that you can continue working, and frankly its very possible to study for this while working a full time (80+ hrs/week) job. Remember that your scores are not reported, so getting 70+% in every category is meaningless apart from internal satisfaction - you just need to pass for it to add something to your resume. Very strong recommendation to not put the CFA *above* your job.

Agree, no one should ever quit a job to study for the CFA

Just wanted to post an update after almost 3 years. I am now managing my family business. I think the CFA course has really helped me get a few things done.

My dad’s business was speeding down a slope when i joined 3 years back - he was making a profit of about $40,000 a year but had debts of $800,000 (@14% interest). So I took the intiative to to sell some non-productive assets (land) and also increase the business income.

Now we earn a profit of around $65,000 a year on debt of $400,000. That’s not great, but good improvement compared to 3 years back. I am looking to sell off some more non-productive assets to bring down debt.

So I want to say that CFA may or may not get you a great career. But it sure drills in a few rules of finance which can be useful in any business.

Hi there,

I am MBA Finance (2009 passout) from NMIMS (supposedly one of the Top B school in India)

I joined a o. in Corp. Finance Dept. of a MNC after my MBA and was soon trf. to Corp. Strategy and later to FP&A

My job sucks and even after clearing CFA L2 and FRM Part I , i have not managed to get even a single interview call for an entry level job.

I have just given L3, and am starting to wonder whether it was worth the effort i took. So I am not sure whether CFA / FRM without relevent experience is useful. I could not get any investment related entry level job even after MBA

No one should expect to get a job just because you have the CFA Charter. The same goes for an MBA. The CFA Charter shows an employer that: A. You know Finance Pretty Well and, B. You’re not a dumbass and can pass hard exams.

Those two facts still don’t necessarily make you an ideal candidate for a particular job. Especially if you have no experience. Now, if you have some experience in a related field AND a CFA Charter, the CFA is a nice supplement and would likely increase your chances of getting the position in question.

In any event, you guys are all talking about positions in India anyways which I’m entirely unfamiliar with. But expecting an employer to see that you have the CFA and say ‘You’re Hired!’ is unrealistic regardless of where you reside.

I thought that four years of experience were required before getting one’s charter.

What takes you too long- 4 years and posting your story?!

Interesting story… you quit your first job because it took you from studying for your CFA and then you worked as a financial adivsor while you spend less time at office…

I meant experience in the specific field of finance. Like applying to go to work for a hedge fund on the street when you’ve been a financial advisor for Ray J for the past 4 years. That type of thing.

All i want to say is that, degrees won’t help you unless you have solid contacts in India, these degrees (partial certifications) have not helped me get a single interview call so far.

Did PGDM from tier 2 college…FRM passed and CFAL3 candidate…Partial ACCA complete…had no problems in geting interviews or job offers…interviewed with Credit suisse/JP morgan/GS/HSBC etc…and got decent Risk managemnet job…Never went out of my way to look for jobs…just posted my resume on job portals…I have even started to invest in equity/options in Indian markets…No body is stopping you from starting investing…Rakesh Jhunjhumwala did it…