Difference Between NCFM and CFA

You are free to use this image on you website, templates, etc., Please provide us with an attribution linkHow to Provide Attribution?Article Link to be HyperlinkedFor eg:Source: NCFM vs CFA (wallstreetmojo.com)

Appearing for CFA Level 1 examCFA Level 1 ExamThe CFA exam is regarded as one of the most difficult to crack. Your preparation, time management, and sequence plays will all play an important role in your journey.read more? – Do have a look at these awesome 70+ hours of CFA level 1 Tutorials

The article is articulated in this order:

  • NCFM vs CFA® InfographicsWhat is NSE’s Certification in Financial Markets (NCFM)?What is the Chartered Financial Analyst® (CFA®) charter?NCFM vs CFA® Exam RequirementsWhy pursue NCFM?Why pursue the CFA® designation?

NCFM vs CFA Infographics

Reading time: 90 seconds

Let us understand the difference between these two streams with the help of the NCFM vs. CFA® infographics.

NCFM vs CFA – Comparative Table

What is NSE’s Certification in Financial Markets (NCFM)?

The NCFM is a certification program for individuals who desire to learn the fundamentals of the capital markets to make their career in India’s financial markets. According to the industry’s regulations, a certified course is necessary if one is keen to participate in the financial markets. The program provides a basic understanding of the concepts related to the different sections of the investment segment, the primary and the secondary marketsSecondary MarketsA secondary market is a platform where investors can easily buy or sell securities once issued by the original issuer, be it a bank, corporation, or government entity. Also referred to as an aftermarket, it allows investors to trade securities freely without interference from those who issue them.read more, the derivatives market, and the financial statementFinancial StatementFinancial statements are written reports prepared by a company’s management to present the company’s financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels.read more analysis. In addition, the course comprises theory and practical application lessons with a wide range of perspectives. The NCFM program training is conducted by the in-house faculty of reliance Leap /IDBI INteq / PIFM/. The qualified candidates require about 30 hours of intervention before giving an online test of the National Stock Exchange and getting the NCFM certificate.

  • Foundation model intermediate moduleAdvanced module

  • Level ILevel IILevel III

  • Financial MarketsFinancial MarketsThe term “financial market” refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. It provides a platform for sellers and buyers to interact and trade at a price determined by market forces.read more Mutual Funds & Debt Market Derivative Instruments Commercial Banking in India Banking & Capital Markets- International Investment Analysis & Portfolio ManagementFundamental & Technical AnalysisOptions TradingOperations and Market RiskBanking Sector & InsuranceTreasury ManagementDepository OperationsCommodities MarketProject Finance and Mergers & AcquisitionsWealth ManagementVenture Capital & Private EquityAlgorithmic Trading

  • Economics Ethics & Professional Standards Quantitative Methods Financial Reporting and Analysis Corporate Finance Portfolio Management [wsm-tooltip header=“Equity Investments” description=“Equity investment is the amount pooled in by the investors in the shares of the companies listed on the stock exchange for trading. The shareholders make gain from such holdings in the form of returns or increase in stock value.” url=“https://www.wallstreetmojo.com/equity-investment/"]Equity InvestmentsCapital MarketsA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets.read more Fixed Income Alternative Investments Derivatives

  • Investment AnalystInvestment AnalystAn investment analyst is an individual or firm that excels in the financial and investment research and have a keen knowledge of financial instruments and models. Such financial professionals include portfolio managers, investment advisors, brokerage firms, mutual fund companies, investment banks, etc.read more Strategist Consultant Portfolio ManagerPortfolio ManagerA portfolio manager is a financial market expert who strategically designs investment portfolios.read more Wealth Manager

  • Level I: Feb 15-21, May 17-23, Aug 23-29, Nov Level II: Feb 22-26, Aug 30 – Sep 03, Nov Level III: May 24-26, Aug 30 – Sep 06

What is the Chartered Financial Analyst® (CFA) charter?

The CFA® Program focuses on investment management. The top employers of shareholders Shareholders A shareholder is an individual or an institution that owns one or more shares of stock in a public or a private corporation and, therefore, are the legal owners of the company. The ownership percentage depends on the number of shares they hold against the company’s total shares.read moreinclude the most respected financial corporations globally, e.g., JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo, to name a few.

Many of these are investment banks, but the CFA® Program focuses on the knowledge and skills most relevant to the global investment management profession from a practitioner’s standpoint.

Investment professionals who hold the CFA® designation (or CFA® charter) meet rigorous educational, work experience, and ethical conduct requirements.

Only those who complete three graduate-level examinations, four years of work experience, and annual membership renewal (including ethics and code of professional conduct attestation) are permitted to use the CFA® designation. In addition, complementary codes and standards (such as the Global Investment Performance Standards and Asset Manager Code) help enhance this professional distinction.

NCFM vs CFA Exam Requirements

NCFM-

No specific age or qualification is required for taking the certification examination. However, computer literacy will be advantageous, considering the test is completely online-based. The following persons are eligible to take the NCFM certification examination:

  1. All approved users and sales personnel of recognized stock exchangesStock ExchangesStock exchange refers to a market that facilitates the buying and selling of listed securities such as public company stocks, exchange-traded funds, debt instruments, options, etc., as per the standard regulations and guidelines—for instance, NYSE and NASDAQ.read more trading members.

  2. Interested students/professionals

  3. Any other individuals

Once registered in the NCFM program, a candidate can take as many modules and several attempts as desired by paying the enrollment fees for every effort.

CFA®-

To qualify for the CFA® program, a candidate must have a bachelor’s (or equivalent) degree or be in the final year of his bachelor’s degree program (an update is required on attaining the degree to qualify for the Level II) or a minimum of four years of professional experience. The CFA® certificate is only awarded after a candidate achieves four years of experience, even after clearing the exam.

Why pursue NCFM?

The NCFM is considered a minimum benchmark course for serious individuals pursuing their careers in the financial industry. Employers ensure that the candidates who apply for jobs relevant to them have passed out of the NCFM program. It provides basic knowledge and understanding of the financial marketsUnderstanding Of The Financial MarketsThe term “financial market” refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. It provides a platform for sellers and buyers to interact and trade at a price determined by market forces.read more. The NCFM is a straightforward exam to be clear and cost-effective; achieving it only adds merit to the resume. The certificate also depicts the candidate’s keenness to lap information and knowledge related to their field despite not favoring employers, unlike the reputed certificate programs like CFA (Chartered Financial Analyst) certification exam prepares you well for careers in Investment Banking, Portfolio Management, Financial Research, whereas FRM (Financial risk management) certification exam is suited for those who want to make a career in Risk management in Banks, Treasury Department or in Risk Assessments.read moreCFA® and FRM.

Why pursue the CFA designation?

The differentiating benefits of earning the CFA® designation include: –

  • Real-world expertiseCareer recognitionEthical groundingGlobal communityEmployer demand

The sheer demand for the CFA® charter shows the difference. More than 2,45,000 global candidates registered for the June 2020 CFA® exams scheduled to be held in 193 cities across 95 different countries.

For more information, refer to CFA® Programs.

Other key comparisons

  • NCFM vs NISM – Which is Better?NCFM vs CPA – Which is better?NCFM vs CFP – Essential DifferencesCFA vs CIPM

Conclusion

The NCFM vs. CFA educational program and module help a candidate develop his aptitude according to the industry’s current practice. Achieving the certificate requires rigorous studying and hard work and, therefore, a chance to loom in the eyes of your employer. Your practical skills would be an asset, provide you with a competitive edge, and boost the possibility of a hike in the future.

Both NCFM is more about financial markets, whereas CFA® gives you a good grounding base about the investment industry. Choose your interest wisely! All the Best.

This article has been a guide to NCFM vs. CFA. Here, we have discussed the differences between NCFM and CFA, infographics, and why to pursue them. You may also look at the following articles for more information: –

  • NCFM CertificationCompare NCFM vs CPACompare NCFM vs NISMCFA Examination Tips and Guide