CFA vs CAT | Full Form, Course Details, Fees, Duration, Jobs etc. | Reality of Both Courses

Most of the time, students have a dilemma in selecting between Chartered Financial Analyst program (CFA) and Common Admission Test (CAT) as both cater the need of building a strong career nexus in finance or management. Although CFA is a global financial & investment qualification, CAT provides entry to MBA courses in India with broad base management career opportunities. This exhaustive guide actually decodes each detail of CFA vs CAT so you will be able to make an informed choice.

What is CFA?

The CFA (Chartered Financial Analyst) designation, offered by the CFA Institute, focuses on investment management and financial analysis. It is ideal for people looking to specialise in Finance and enter roles like portfolio management, equity research, risk analysis etc.

CFA Course Details

• Structure and Curriculum:

  The CFA program has three levels, each covering advanced topics in finance:

  • Level I — Basic subjects such as gold standard, quantitative methods and infrastructural accounting
  • Level II: Practical usage of financial instruments in complex situations.
  • Level III: Portfolio management & wealth planning.

• Core Subjects Across All Levels:

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

Fees for the CFA Program:

CFA fees vary depending on the registration timing and level:

Level I Exam Fees (2024):

• One-Time Enrollment Fee: $350
• Early Registration: $940
• Standard Registration: $1,250
• Rescheduling Fee: $250

Exam Fee Changes (2025 onwards):

• Level I: Early: $990 | Standard: $1,290
• Level II: Early: $990 | Standard: $1,290
• Level III: Early: $1,090 | Standard: $1,390

Training Fee:

The CFA Coaching Fees ranges around ₹50,000 to ₹1 Lakh, depending upon various factors based on location, mode of learning, CFA level, coaching provider’s reputation etc.

Want To Know About Proschool’s CFA Coaching Fees?

Duration Of The CFA Course

With appropriate planning and scheduling, it typically takes candidates 2–4 years to complete all the levels.

Also Read – Is CFA Worth It To Get A Good Finance Job? Backed By Data | Ask The Proschool Experts

What is CAT?

The Common Admission Test (CAT) is a management entrance exam conducted by IIMs (Indian Institutes of Management) every year for admission to consequent management programmes. Looking to get admission into MBA programs, it tests candidates on their quantitative, logical and verbal abilities.

CAT Course Details

• Subjects and Structure:

  CAT tests three key areas over a 2-hour computer-based exam:

  • Verbal Ability and Reading Comprehension (VARC)
  • Data Interpretation and Logical Reasoning (DILR)
  • Quantitative Ability (QA)

• Scoring and Admission Process:

  When it comes to admissions in IIMs and more than 1,000 b–schools in India, percentiles matter as it accepts the scores that CAT provides.

Fees for CAT

• General Category: ₹2,400
• SC/ST/PwD: ₹1,200
  Extra preparation charges (for coaching, mock tests) – ₹20,000 to ₹1,50,000.

Duration Of The CAT Course

It takes about 6 months to a year for CAT preparation with its annual date every November.

Also Read – CFA or MBA in Finance? Decide the Best Course for Global Career Opportunities

Detailed Comparison: CFA vs CAT

Course Focus

• CFA: CFA program curriculum is aimed at giving professionals with advanced technical skills required for roles like a portfolio manager, investment banker and financial analyst. Curriculum is highly finance/economics focused with in-depth coverage including equity analysis, derivatives and alternative investments
• CAT: CAT is an entrance exam for MBA, giving a broad base education on business and managerial skills. An MBA is a versatile degree and will be teaching candidates about multiple subjects like finance, marketing, operations, human resources, entrepreneurship etc. It allows aspirants to take up leadership positions and strategic decision making roles across sectors, a responsibility that CAT and the MBA education itself prepare you for.

Course Designed For

• CFA: The CFA program is designed for those who possess a strong interest towards finance and investment management, especially if they are seeking to specialise in niches focused on financial analysis, risk management and equity research. It is also suitable for professionals who want to deeply study and work in roles demanding technical knowledge of financial markets. CFAs frequently pursue professions in investment banking, asset management and hedge funds.
• CAT: CAT is for students who want to work in higher positions eventually and enter diverse fields like consulting, IT, FMCG, and healthcare. The MBA pathway caters to generalists seeking an overview of various facets of business and the subsequent versatility needed to move between marketing, operations, strategy, etc. This path also helps to prepare you for management or a career in entrepreneurship.

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

Job Market Demand

• CFA: Investment banking, asset management, private equity and corporate finance are a few of many domains that consistently seek CFA charter holders. The technical level of CFA as well as its global applicability and recognition makes it appealing to companies in these areas. Leading employers like Goldman Sachs, JP Morgan Chase, and BlackRock hire CFAs. These require typically solid analytical skills, experience of financial modelling, and profound knowledge of financial markets.
• CAT: Consulting, IT, Marketing, Operations and finance are some of the industries most likely to show a demand for MBA graduates; specifically those from premier institutes like the IIMs. This adaptability and supervisory potential is attractive to employers across both traditional and emerging sectors. Some of the key recruiters are McKinsey & Company, Deloitte, Google and Amazon. Although finance roles are there for MBA grads, the non-finance range of opportunities helps bring flexibility to career options.

Fees and ROI: CFA vs CAT

CFA Fees Breakdown

Total estimated cost: $2,700–$5,000 (₹2–₹4 lakh), depending on registration timing and training.

CAT + MBA Fees Breakdown

• CAT Exam Fees: ₹2,400
• CAT Coaching Fees: ₹60,000 – ₹80,000
• MBA Program Fees: ₹10–₹25 lakh, depending on the institution (IIMs being the costliest).
• Total: ₹10–₹25+ lakh.

ROI for CFA vs CAT

• CFA Salary Expectations:
  • Entry-level roles: ₹6–₹12 lakh per annum
  • Experienced roles: ₹15–₹35 lakh per annum.
• CAT/MBA Salary Expectations:
  • Graduates from top IIMs: ₹20–₹35 lakh per annum
  • Mid-tier B-schools: ₹6–₹12 lakh per annum.

Also Read – Breaking Down CFA Pass Rates by Levels and Years

Skills Required to Excel

CFA

• Analytical and quantitative skills.
• Commitment to ethical financial practices.
• Problem-solving under real-world constraints.

CAT

• Proficiency in verbal, quantitative, and reasoning skills.
• Ability to adapt and perform under pressure.
• Networking and interpersonal skills for MBA programs.

Career Opportunities After CFA

Roles and Industries

• Investment Analyst
• Portfolio Manager
• Equity Research Analyst
• Risk Manager
• Financial Consultant

Top Employers for CFA Charterholders

• JPMorgan Chase
• Morgan Stanley
• Goldman Sachs

Salary Benchmarks

The average salary of a Chartered Financial Analyst (CFA) in India ranges around ₹617,546 annually.

This number can differ depending on experience, location, and specific job functions.

Entry-Level Salaries:

At an entry-level, the average total compensation for a CFA with less than one year of work experience is approximately ₹602,506 each year.

Mid-Level to Senior Positions:

As CFAs gain experience, their earning potential increases:

• Early Career (1–4 years): Average total compensation of ₹630,000 per year.
• Mid-Career (5–9 years): Average total compensation of ₹800,000 per year.
• Experienced (10–19 years): Average total compensation of ₹1,200,000 per year.
• Late Career (20+ years): Average total compensation of ₹1,500,000 per year.

Factors Influencing Salaries:

A few factors help to sway these numbers:

• Location: Salaries differ by city of employment. For example, a CFA in Mumbai draws an average annual salary of ₹580,650, whereas a CFA in New Delhi earns ₹704,693 per annum.
• Employer: Salary also depends on the organisation one works for. For example, J.P. Morgan Chase & Co. (JPMCC) offers an average salary of ₹1,567,875 per year to its employees in India.
• Role and Responsibilities: Specific job roles, such as portfolio manager or risk analyst, may offer higher compensation compared to general financial analyst positions.

These figures provide a general overview. Actual salaries can vary based on individual qualifications, specific job roles, and the employing organisation.

(Source: Payscale)

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

Career Opportunities After CAT/MBA

Roles and Industries

• Business Analyst
• Marketing Manager
• HR Manager
• Operations Head

Top Recruiters

• McKinsey & Company
• Google
• Deloitte

Salary Benchmarks

In India, MBA salaries depend on where you get your degree from: top institutes bring in the big bucks, while Shoddy schools see much lower pay scales.

IIM Graduates:

Owing to the prestigious nature of these institutes and a very rigorous selection process, graduates from Indian Institutes of Management or IIMs typically get higher salary packages. As per the available data in AmbitionBox, the average salary for IIM graduates is between ₹20 to ₹35 LPA.

Non-IIM MBA Graduates:

Salary packages for MBA graduates from non-IIM institutes are good, but they are on a lower side when compared to that of the IIM graduates. According to AmbitionBox, a non—IIM MBA graduate earns generally between ₹6 lakh and ₹15 lakhs per annum depending upon the colleges and their performances.

Salary Differences Based on Reasons:

The difference between the salary packages of IIM and non-IIM MBA graduates is owed to a few factors.

• Reputation of the Institution: IIMs are well-known for their academic excellence and good industry relations hence the graduates from IIMs get better salary offers. Alumni are a strong alumni network who help get jobs with various high-paying companies such as Microsoft and Google.
• Company Perception: Companies place a much higher regard and quality for IIMs as compared to other colleges down the ladder which leads to them quoting inflated pay packages.

While these numbers paint a broad picture, salaries generally depend upon individual performance within the industry and economic conditions.

Also Read – CFA Exam and Investment Banking. How to become an investment banker.

CFA Vs CAT — How To Decide Which One Is Better?

Career Aspirations

• If you have an inclination toward finance and investments, cuddle up with CFA.
• Opt for CAT — a multidimensional MBA that leads to a multidimensional leadership role in any industry.

Cost and Time

• CFA is cheaper and targeted but demanding over multi-years.
• CAT paves the way for an MBA, which is more expensive but has a wider career scope.

Long-Term Vision

• At the same time, if you’re going into any type of niche finance, CFA is going to be good for you.
• CAT/MBA is good for a career in Leadership and Entrepreneurship.

CFA Prep Course by IMS Proschool

If you’re considering CFA as the next step in your career, IMS Proschool can guide you every step of the way with its industry-leading training programs. Recognized for its student-focused approach, IMS Proschool offers a structured CFA Prep course that ensure you’re well-prepared for the challenges of the CFA exams.

Reasons for Selecting IMS Proschool for CFA Training

• Expert Faculty – Study with industry professionals who have practical experience. The Faculty at IMS Proschool are themselves CFA charterholders, which means getting inputs from the people, who have successfully done it and guide you along the way in the similar path.
• Comprehensive Study Material – IMS Proschool offers crisp and quality study material which is in accordance to CFA Institute’s curriculum. They simplify the complex concepts and help you focus on the topics that are most relevant to your exams.
• Mock Exams and Practice Tests – IMS Proschool provides just the rigorous practice that you need to ace the CFA exams. Through a series of 5 mock tests and 2,000+ practice sessions, you will gauge your progress, recognize weaker areas and sharpen your preparation strategy.
• Personalised Mentorship – The paths of individual students differ. State your specific learning needs and challenges, and IMS Proschool offers customised mentorship to help you tackle them. The mentors can help you with time management, conceptual clarity, or confidence building, whatever it may be.
• Flexible Learning Options – IMS Proschool offers classroom-based & live online classes making it suitable for both working professionals and full-time students.
• Evidence of Past Success – 84% of our students have recommended that you join Proschool for your CFA Prep.

What Sets IMS Proschool Apart?

• Focused doubt-clearing sessions to ensure no query goes unanswered.
• Real-world examples and case studies that make learning practical and engaging.
• Community support through discussion forums where you can interact with peers and experts.

Conclusion

CFA and CAT both provide ample career opportunities, but you must choose as per your aim. CFA is meant for niche finance roles, whereas CAT/MBA caters to a generalist audience who wants managerial and leadership positions. Consider your likes, skills and willingness to invest money and time so that you can choose wisely for the future.

FAQs

What are the main differences between CFA and CAT?

CFA is a finance-specific credential focusing on investment management and financial analysis. CAT is an entrance exam for MBA programs, covering diverse management topics and preparing candidates for leadership roles across industries.

Which is better for finance careers?

CFA is ideal for specialised finance roles such as investment analyst or portfolio manager. CAT + MBA offers broader opportunities, including finance leadership and management positions in diverse fields.

What is the cost difference between CFA vs CAT?

The CFA program costs ₹2–₹4 lakh, including enrollment, exam, and training fees. CAT exam fees are lower (~₹2,400), but MBA tuition fees range from ₹10–₹25 lakh at IIMs, making CAT + MBA a costlier option.

How long does it take to complete CFA vs CAT?

CFA typically takes 2–4 years to complete, requiring significant preparation for each of the three levels. CAT + MBA spans around 3 years, including 1 year of preparation and a 2-year MBA program.

How can IMS Proschool assist you with your CFA preparation?

IMS Proschool offers a clearly defined roadmap of courses, mock exams, and mentor-oriented support, which leaves no stone unturned for students appearing for CFA exams. Learning modes are flexible, and personalised support is provided to address each individual’s unique learning needs.