The CFA, or Chartered Financial Analyst, is a professional certification offered by the CFA Institute to investment and financial professionals. It is a globally recognized professional designation that measures the competence and integrity of financial professionals. To earn the CFA charter, candidates must pass a series of three exams that test the fundamentals of investment tools, valuing assets, portfolio management, and wealth planning. The CFA designation is designed to demonstrate a strong foundation in advanced investment analysis and portfolio management, accompanied by a strict emphasis on ethical practice.
The CFA Institute was established in 1947 as a service organization for investment professionals, and the Institute of Chartered Financial Analysts was founded in 1962. The CFA charter is one of the most respected designations in finance and is widely considered to be the gold standard in the field of investment analysis. The CFA charter is a mark of distinction, and investment firms know it represents a higher standard.
The CFA charter is highly sought after by finance professionals and the companies they work for. It is often a requirement for becoming a chief investment officer at an investment firm or public company, engaging in credit analysis, corporate accounting and auditing, or doing financial planning for high net-worth individuals. The CFA charter is not a guaranteed path to riches and glory, however, as earning it requires a significant investment in time, money, and effort.