1. The CFA® designation is recognized around the globe as one of the most respected designations for analysts and portfolio managers in the investment management industry. The signaling effect from completing this 3 year challenging self-study program successfully is very strong. Having obtained the CFA® designation will often give your CV the edge over non-CFA® charterholders that otherwise have a similar background.
2. The fact that it is a self-study program makes it extremely flexible. You decide when, how and how much effort you want to put into it at each level. (There is obviously a lower limit to how much effort you need to put in, to avoid a retake). You can study towards the CFA® program while you build on your practical investment skills in your day time job. This combination of on the job and “academic” learning is very effective. At the same time completing the CFA® program is also relatively cheap compared to most master’s degrees and MBA programs.
3. Often overlooked but equally importantly, becoming a candidate in the program will enable you to become a member of your local society, providing you some of the best continued learning and networking opportunities in the industry.
4. The CFA® exam curriculum is tailored specifically to teach the key skill set and knowledge required in managing assets and depending on your background it will refresh and/or expand your knowledge about portfolio management and related topics. While opinions may differ on the relevance of some of the curriculum, the designation will definitely ensure that you have a deep and thorough understanding of the products in the financial markets.
5. The CFA® designation is not a guaranteed ticket to become a successful asset manager, but not having one could set you back in competition with the increasing number of CFA® charterholders out there. Also the CFA® designation can be used as a lever in persuading your employer to help you transitioning into a new role that better fits your skills and interests, e.g. if you want to move from a more passive into a more active role on the investment side. The fact that you have completed the CFA® program adds to your credibility, and credibility and trust is everything in the asset management industry.
As you can see there are plenty of good reasons to study towards the CFA® designation. However, given the tremendous commitment of time and effort necessary to complete the program successfully, you should definitely do a bit of soul searching to get clear about your motives before you dive in. This posts walks through some of the key things to consider before signing up.