CFA vs NISM | Full Form, Course Details, Fees, Duration, Jobs | Reality of Both Finance Courses

Many college students who are graduating and want to make a career in finance often ask whether they should pursue the CFA, NISM, or both. This is a common question for anyone considering a future in finance.

Both the CFA and NISM require a significant amount of time and financial investment. While these two certifications are highly respected in the finance industry, they focus on different areas. The CFA is one of the most popular courses among students from finance and accounting backgrounds, and it is often compared to the CA certification.

This topic is a hot debate among college students and has been for a long time. Before you choose between the CFA vs NISM, it’s important to understand what each course involves and which one would be the best fit for your career.

Let’s take a detailed look at each course to help you decide which one suits you best.

What is CFA?

The Chartered Financial Analyst (CFA) is a highly recognized international course in finance, covering a wide range of financial topics in great detail. The CFA focuses on investment banking and portfolio management.

As a CFA, you would be responsible for analyzing your clients’ financial performance and developing and implementing tools for managing portfolios. To complete the CFA program, candidates must pass Level I, II, and III exams and have 3-4 years of relevant work experience.

This course covers everything in financial analysis, modeling, reporting, portfolio management, capital markets, currency, and financial markets in-depth and at an advanced level. The knowledge it provides is much more comprehensive than what you get from basic Research Analyst or other foundation-level certifications in the NISM certification.

Organizing Body: CFA Institute, USA

The CFA certification is conferred by the CFA Institute, headquartered in the USA. This organization sets the standards and conducts the examinations for the Chartered Financial Analyst designation globally. Founded in 1947, the CFA Institute is renowned for its rigorous curriculum and ethical standards in the field of investment management. It offers a pathway for finance professionals seeking to enhance their knowledge and credentials in financial analysis and portfolio management, ensuring they meet high standards of competence and integrity recognized worldwide.

Levels of the CFA Program

• Level I: Focuses on basic knowledge of asset valuation, financial reporting and analysis, and portfolio management techniques.
• Level II: Emphasizes application and analysis of asset valuation and includes more complex topics such as equity investments, fixed income, derivatives, and alternative investments.
• Level III: Focuses on the synthesis and application of all the concepts and analytical methods in asset management and portfolio planning. It includes topics like portfolio management and wealth planning strategies.

Each level requires 300+ hrs of significant preparation and commitment from candidates.

Also Read – CFA Scholarships – Types, Eligibility & Application Process

Duration and Exam Structure of the Course

Exam Level	Morning Session	Afternoon Session	Duration	Question Type	Exam Months
CFA Level I	90 Questions	90 Questions	2 hours, 15 minutes each	Multiple choice questions	February, May, August, November
CFA Level II	44 questions in 11 case studies	44 questions in 11 case studies	2 hours and 12 minutes each	Vignette-supported multiple-choice questions	May, August, Nov
CFA Level III	Item sets with vignettes and essay questions	Item sets with vignettes and essay questions	2 hours and 12 minutes each	Vignette-supported essay questions and multiple-choice questions	Feb & August

Syllabus Of The CFA Course

CFA Syllabus Subjects and Topics	Aim of Study
Ethical and Professional Standards	Understand ethics and challenges in ethical behavior in the investment industry.
Financial Statement Analysis	Thorough explanation of financial reporting procedures and standards.
Equity Investments	Analysis of equity securities, markets, and basic valuation models.
Fixed Income	Understanding fixed-income securities, markets, risk factors, and valuation measures.
Corporate Issuers/Finance	Knowledge of corporate structures, governance, financing decisions, and ESG considerations.
Quantitative Methods	Learn quantitative concepts and techniques for financial analysis and decision-making.
Economics	Analysis of economic concepts, market forces, business cycles, and macroeconomic principles.
Portfolio Management and Wealth Planning	Fundamentals of portfolio management, asset allocation, risk management, and ESG investing.
Derivatives	Valuation and applications of derivative instruments in portfolio management.
Alternative Investments	Overview of hedge funds, real estate, private equity, commodities, and alternative investment strategies.

Difficulty Of The CFA Course

CFA Level	Difficulty Level
Level I	Generally considered the foundational level, covering broad concepts with less depth.
Level II	Increases in complexity, focusing on the application of concepts with more detailed analysis.
Level III	Integrates all concepts from Levels I and II into practical portfolio management scenarios.

Each level builds upon the previous one, with Level I being more about understanding fundamental concepts, Level II requiring deeper analysis and application, and Level III focusing on synthesis and practical application in real-world scenarios.

Get 200+ hrs of CFA Level 1 Coaching In Your City + Exam Pass Commitment 

Fees and Overall Cost

Particulars	Fees
CFA Enrollment Fee	USD 350
Early Registration Fee	USD 940
Standard Registration Fee	USD 1250
Rescheduling Fee	USD 250

Candidates need to pay these fees to register for the CFA exam, with options for early registration at a discount and a rescheduling fee if they need to change their exam date.

Also Read – Breaking Down the Cost of CFA in 2024 + Essential Budgeting Tips

Job Prospects and Career Path

Here’s an in-depth look at the job prospects, salary expectations, and top employers for Chartered Financial Analysts (CFA) in India:

Common Job Roles

CFA certification opens doors to a variety of prestigious roles in both private and government sectors. Common job titles include:

• Investment Manager: Responsible for managing investment portfolios and making strategic investment decisions.
• Portfolio Manager: Oversees investment portfolios, ensuring optimal asset allocation and risk management.
• Risk Manager: Identifies and mitigates financial risks, ensuring the stability and profitability of investments.
• Chief Financial Officer (CFO): Provides strategic financial leadership and oversees financial planning and reporting.
• Financial Planner: Collaborates with clients to plan and manage their financial goals, including wealth management and retirement planning.
• Equity Research Associate: Analyzes financial data to provide insights on equity investments, contributing to investment strategies.
• Zonal Sales Manager: Manages sales activities and strategies within a specific region, achieving revenue targets and building client relationships.
• Equity Dealer/Trader: Executes equity trades for high net-worth clients, monitoring market trends and providing investment advice.

Salary Expectations

Salaries for CFA professionals in India vary based on experience and role:

Job Role	Experience	Salary (INR, PA)	Job Description
Financial Planner	5-10 Years	4-4.5 Lacs	Financial planning, wealth management, and retirement planning for clients.
Equity Research Associate	1-2 Years	3.5-4.5 Lacs	Analysis of financial and market data to provide insights on equity investments.
Zonal Sales Manager	15-24 Years	30-40 Lacs	Strategic sales management, revenue generation, and client relationship building in the South India region.
Equity Dealer/Trader	4-9 Years	5-10 Lacs	Execution of equity trades for HNI clients, market analysis, and investment advisory services.

Also Read – CFA Jobs & Salaries In India After CFA Level 1, Level 2 & Level 3

Top Employers

Leading companies and organizations that actively recruit CFA professionals in India include:

• JP Morgan and Co
• HSBC
• Credit Suisse
• Deloitte
• PwC (PricewaterhouseCoopers)
• Ernst and Young (EY)
• Hindustan Unilever Ltd
• The Goldman Sachs Group Inc.

These companies offer competitive salaries and comprehensive benefits packages, making them highly desirable employers for CFA-certified professionals.

Career Growth and Opportunities

The CFA certification is highly regarded globally, providing substantial opportunities for career advancement and professional growth:

• Career Advancement: CFA Level I serves as a foundational step, leading to specialized roles and increased responsibilities in investment management and financial analysis.
• Entrepreneurial Ventures: CFA certification empowers professionals to start their own ventures in finance or consultancy.
• Global Recognition: With recognition in over 165 countries, CFA-certified professionals have access to international job markets and networking opportunities.
• Advanced Roles: Completion of CFA Level II and Level III opens doors to senior-level positions such as Chief Investment Officer (CIO) and Director of Portfolio Management.
• Skill Development: Skills acquired through the CFA program, including financial modeling, risk management, and ethical leadership, are highly valued in the finance industry.

This comprehensive approach underscores the diverse career paths and lucrative prospects available to CFA professionals in India’s dynamic finance industry.

What is NISM?

NISM means National Institute of Securities Markets Certification. SEBI’s education division is called the National Institute of Securities Markets (NISM). It provides various courses to improve the knowledge and skills of financial professionals. The goal of NISM is to professionalize and standardize India’s securities markets.

One notable feature of the NISM 8 certification is its accessibility. Professionals, employees, and learners from diverse educational backgrounds can access it. NISM offers certification exams for different Securities Market Participants and Intermediaries as required by SEBI. It is open to anyone interested in learning more about the Indian Securities Markets. Importantly, there are no age or minimum educational requirements to take the NISM tests.

Organizing Body: National Institute of Securities Markets, India

The organizing body for certifications such as Mutual Fund Distributors Exam (NISM Series V) and Portfolio Management Services offered in India is the National Institute of Securities Markets (NISM). The Securities and Exchange Board of India (SEBI) recognizes and regulates these certifications. They provide fundamental knowledge about financial markets and are highly valued by recruiters for roles such as analysts, researchers, trainees, and distributors in the financial sector. While these certifications offer recognition from SEBI and can facilitate job placements, they primarily cover foundational concepts and may not provide the same professional standing as more specialized certifications in the competitive job market.

Various Modules and Certifications Offered

The National Institute of Securities Markets (NISM) offers various certification exams covering different themes divided into modules. These certifications are recognized by SEBI and cater to different career paths in the financial industry.

1. NISM-Series-I: Currency Derivatives Certification Examination:

   • For those interested in currency markets and exchange-traded currency derivatives.
   • Ideal for Currency Derivatives Traders and careers in Forex and international trade.

2. NISM-Series-II: Registrars to an Issue and Share Transfer Agents Certificate Examination:

   • Focuses on Registrars and Transfer Agents (RTA) firms.
   • Suitable for careers at firms like CAMS and Karvy.

3. NISM-Series-III: Securities Intermediaries Compliance Certificate Examination:

   • Compulsory for non-fund compliance for intermediaries (Exam III-A).
   • Voluntary for compliance officers (Exam III-B).

4. NISM-Series-IV: Interest Rate Derivatives Certification Examination:

   • Covers interest-rate derivatives and fixed-income securities.
   • Designed for traders in Debt Markets.

5. NISM-Series-V: Mutual-Funds-Related Certification Examination:

   • This is essential for those entering the mutual fund industry as agents or distributors.

6. NISM Series VI: Depository Operations Certification Examination:

   • Mandatory for individuals working with depository participants (DPs) in India.

7. NISM-Series-VII: Securities Operations and Risk Management Certification Examination:

   • Provides knowledge of stock exchange operations and products.
   • Required for roles in stock brokerage, clearing, and settlement.

8. NISM-Series-VIII: Equity Derivatives Certification Examination:

   • Mandatory for personnel in equity derivatives firms.
   • Suitable for roles in stock trading and derivatives.

9. NISM Series-IX: Merchant Banking Certification Examination:

   • For professionals involved in merchant banking, IPOs, and buybacks.

10. NISM-Series-X: Investment Adviser Certification Examination:

    • Essential for those in investment advisory roles, including financial planners.

11. NISM Series-XII: Securities Markets Foundation Certification Examination:

    • Entry-level exam for beginners aiming to start a career in the stock market.

12. NISM-Series-XIII: Common Derivatives Certification Examination:

    • Beginner course for those entering the derivatives segment.

13. NISM Series-XIV: Internal Auditors for Stock Brokers Certification Examination:

    • Voluntary for auditors and professionals in internal auditing for stock market firms.

14. NISM-Series-XV: Research Analyst Certification Examination:

    • Mandatory for those pursuing careers as research analysts in equity markets.

15. NISM-Series-XVI: Commodity Derivatives Certification Examination:

    • Mandatory for understanding commodity derivatives and market regulations.

16. NISM-Series-XVII: Retirement Adviser Certification Examination:

    • For retirement advisers under PFRDA regulations in the stock market.

17. NISM-Series-XVIII: Financial Education Certification Examination:

    • Voluntary exam assessing financial literacy and planning basics.

18. NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors:

    • For those interested in alternative investment funds and distribution.

These certifications cover diverse aspects of the financial industry, providing pathways for career growth and specialization.

Duration and Structure of the Course

Duration: 1-year, full-time program.

Eligibility:

• Postgraduate in any discipline from a recognized University.
• Graduate in any discipline with a minimum of 55% marks from a recognized university in India.

Certificate	Total Questions	Total Marks
NISM-Series-I	100	100 (1 mark per question)
NISM-Series-II-A	100	100 (1 mark per question)
NISM-Series-II-B	100	100 (1 mark per question)
NISM-Series-V-B	50	50 (1 mark per question)
NISM-Series-V-C	75 MCQs	100 (1 mark per question)
		(50 MCQs)
		(25 MCQs – 2 marks each)
NISM-Series-VI	100	100 (1 mark per question)
NISM-Series-X-A	135 questions	150
		(90 marks for 9 case-based
		questions)
		(90 marks for MCQs – 1 mark per
		MCQ)
NISM Series-X-B	120	150
		(90 questions – 1 mark per
		question)
		(30 case-based questions –
		2 marks each)
NISM-Series-XIII	150	150 (1 mark per question)
NISM-Series-XX	75	100
		(50 MCQs – 1 mark per question)
		(25 MCQs – 2 marks per question)
NISM-Series-XXI-B	135	150
		(60 MCQs – 1 mark per question)
		(45 case-based questions –
		2 marks each)
NISM-Series-XXII	85 MCQs	100
		(70 MCQs – 1 mark per question)
		(15 MCQs – 2 marks per question)

Fees and Overall Cost

• Enrollment fee: USD 400 (one-time)
• Early bird exam fee (Part 1 and Part 2): USD 600 each
• Standard exam fee (Part 1 and Part 2): USD 800 each

Total registration cost ranges from USD 1,000 to USD 1,200 for both exam parts.

Job Prospects and Career Path

Adding this certification to your resume can significantly enhance your appeal to recruiters when applying for positions such as Financial Analyst, Research Analyst, Business Analyst, Associate Analyst, Financial Crime Analyst, and other related Analyst roles.

Salary Expectations

The average salary for NISM-certified professionals varies significantly across roles, ranging from approximately ₹3,00,791 per year (estimated) for an Equity Research Analyst to ₹15,02,378 per year (estimated) for a Project Manager.

Let’s Compare CFA vs NISM

Criteria	CFA	NISM
Organizing Body	Managed by the CFA Institute, USA	Managed by the National Institute of Securities Markets, India
Course Structure and Duration	Divided into three levels; typically takes 4 years	Various modules; completion time varies from weeks to months
Syllabus Comparison	Comprehensive coverage of investment management and financial analysis	Broad range of topics including financial markets, mutual funds, derivatives, and more
Exam Fees and Costs	Higher overall cost ($2,550 – $3,450)	Lower overall cost ($1,500 – $1,700)
Job Prospects and Career Opportunities	Investment Analyst, Portfolio Manager, Consultant, etc.	Broker, Risk Manager, Research Analyst, etc.
Difficulty Level	High difficulty with lower pass rates	Moderate difficulty with higher pass rates
Global Recognition and Demand	Globally recognized with high employer demand	Recognized within India, particularly in the Indian financial markets

CFA vs NISM Salary – Average & Charter Holder Salary

Certification	CFA (INR)	NISM (INR)
Level 1 / Part 1	3 – 4+ Lakhs P.A.	3 – 4+ Lakhs P.A.
Level 2 / Part 2	6 – 10+ Lakhs P.A.	6 – 10+ Lakhs P.A.
Level 3	12+ Lakhs P.A.	–
Charter Holder	12 – 18+ Lakhs P.A.	12 – 16+ Lakhs P.A.

 

Certification	Average Salary (Freshers)	Average Salary (Experienced)
CFA	Rs 6 – 9 lakhs per annum	Doubles with experience
NISM	Rs 5 – 8 lakhs per annum	Increases with experience and risk profile

CFA vs NISM – Let’s Do A Reality Check!

Reality Of CFA Course:

• Global Recognition: The CFA charter is internationally recognized and highly respected, especially for careers in investment management and analysis.
• Comprehensive Curriculum: Covers a wide range of finance topics, providing deep insights and expertise.
• High Demand: Employers globally seek CFA charter holders for their rigorous training and ethical grounding.

Reality Of NISM Course:

• Local Relevance: NISM certifications are more focused on the Indian financial markets and regulatory environment, making them ideal for professionals working in or with Indian financial institutions.
• Flexibility and Accessibility: Easier to pursue due to lower costs and flexible exam schedules.
• Specialization: Offers targeted knowledge in specific areas like mutual funds, derivatives, and market risk, which can be beneficial for niche roles within India.

CFA vs NISM – What Should You Pursue?

Who Should Pursue CFA?

Anyone Interested In A Career In Finance:

• The CFA® Program’s course material is thorough, extensive, and constantly updated, making it suitable for industry professionals and fresh graduates alike.
• Candidates interested in various roles within the finance sector, from investment to portfolio management, financial modeling, and beyond, can benefit from the wide range of topics covered.

Those Looking To Work For Major Investment Firms:

• CFA is highly respected in the finance sector, with major investment firms often prefer CFA candidates for high-paying positions due to their vast knowledge base.
• Having a CFA qualification on your resume enhances your chances of being hired by major investment firms, demonstrating your commitment and expertise in finance.

Individuals Seeking Greater Job Stability And Better Job Prospects:

• The CFA charter strengthens your background in finance and is a valuable addition to your resume, providing greater job stability and better prospects in the finance industry.
• While it doesn’t guarantee a job, the CFA charter enhances your credentials and increases your competitiveness in the job market.

Those Seeking a Cost-Effective Globally Recognized Certificate:

• Compared to an MBA, which is time-consuming and expensive, the CFA Program offers a cost-effective way to gain a globally recognized certificate in finance.
• For individuals unable to pursue an MBA due to cost or time constraints, the CFA Program provides an accessible pathway into the investment and finance world.

Individuals Wanting to Gain In-depth Practical Knowledge in Finance:

• The CFA curriculum covers financial concepts in detail, offering practical knowledge and enhancing both technical and soft skills.
• If your goal is to gain in-depth practical knowledge of the finance world, the CFA Program provides a comprehensive and rigorous education in finance.

Who Should Pursue NISM?

Aspiring Professionals in Indian Financial Markets:

• NISM certifications are tailored to the Indian financial markets and regulatory environment, making them ideal for individuals aspiring to work in roles specific to the Indian financial industry.

Regulatory Compliance Officers and Risk Managers:

• Professionals responsible for regulatory compliance and risk management within Indian financial institutions can benefit from NISM certifications, which provide specialised knowledge in areas like derivatives, market risk, and compliance.

Entry-Level Candidates in Finance:

• Recent graduates or individuals new to the finance industry who want to start their careers in India can gain foundational knowledge of financial markets and regulations through NISM certifications.

Individuals Seeking Specialisation in Niche Roles:

• NISM offers certifications covering a broad range of topics, including financial markets, mutual funds, derivatives, and more, allowing individuals to specialize in niche roles within the Indian financial sector.

Professionals Seeking Cost-Effective Certification:

• NISM certifications offer a cost-effective way to gain recognition and expertise in the Indian financial markets compared to other more expensive certification programs.

Candidates Seeking Flexibility and Accessibility:

• NISM certifications typically have shorter durations and flexible exam schedules, making them accessible to individuals with busy schedules or those looking to complement their existing qualifications with specialised knowledge.

IMS Proschool’s CFA & NISM Prep Course

IMS Proschool’s Options Trading Course offers a practical learning experience suitable for beginners alongside their ongoing education. With a focus on core derivatives concepts and hands-on trading using Sensibull, the course equips learners with essential skills for roles such as Derivatives Trader or Equity Derivatives Analyst. Completion of the course prepares you for the NISM Series 8 Derivatives Exam and provides access to numerous job opportunities through IMS Proschool’s job portal, making it an ideal choice for those seeking to enter the investment and brokerage sectors.

IMS Proschool’s CFA Prep Course offers a comprehensive pathway for aspiring Chartered Financial Analysts (CFA), providing industry-experienced faculty, personalized study plans, and robust preparation with mock exams and practice questions. With classes starting monthly across 10+ centers in India, ProSchool ensures students are well-prepared for each level of the CFA Program, enhancing their prospects for employment post-Level 1 certification. For anyone aiming to excel in the finance sector with a globally recognized CFA designation, IMS Proschool stands out as a reliable choice to achieve career aspirations in investment and finance.

FAQs

1. CFA vs NISM –Which certification is better for a career in investment banking?

The CFA certification is generally more suitable for a career in investment banking due to its in-depth focus on investment management, financial analysis, and portfolio management, which are crucial for investment banking roles. NISM, on the other hand, is more oriented towards the Indian financial markets and regulatory requirements.

2. Can I pursue both CFA and NISM certifications simultaneously?

Yes, it is possible to pursue both certifications simultaneously, although it can be demanding in terms of time and effort. Balancing both courses can provide a comprehensive understanding of both global and Indian financial markets, enhancing your career prospects.

3. How long does it typically take to complete the NISM certification compared to the CFA?

The NISM certification can be completed in a much shorter time frame, often within a few weeks to a few months, depending on the specific module. In contrast, the CFA certification typically takes around 4 years to complete if all exams are passed on the first attempt.

4. What are the prerequisites for enrolling in the CFA and NISM programs?

For the CFA program, candidates must have a bachelor’s degree be in the final year of their bachelor’s degree program, or have four years of professional work experience. NISM certifications do not have specific prerequisites, making them accessible to a broader range of candidates, including students and professionals.

5. How do the exam fees for CFA and NISM compare?

The CFA program has a higher overall cost, ranging from $2,550 to $3,450, which includes an enrollment fee and exam fees. The NISM certification is more cost-effective, with the total expenditure for the various modules ranging from $1,500 to $1,700. Each NISM module typically costs around $30.

6. Is NISM easy to crack?

The difficulty of cracking NISM exams depends on your preparation and understanding of the subject matter. With dedicated study and practice, many candidates find NISM exams manageable.

7. Is the NISM certificate valuable?

Yes, the NISM certificate is valuable in the financial industry. It indicates proficiency in specific areas of financial markets and securities operations, enhancing job prospects and credibility in the field.