CFA vs CWM

CFA is the abbreviation used for Chartered Financial Analyst. The CFA Institute offers this course to enhance aspirants’ in-depth knowledge of problematic areas of finance. In contrast, CWM is the short form for Chartered Wealth Manager provided by the AAFM (American Academy of Financial Management). It enables aspirants to learn the basics of wealth and asset management.

Which is better? Certification courses are abundant and a great deal of worry for many students who want to pursue them. On one side, we have the CFA exams, which are considered the gold standard among the finance certification exams. So if you have a keen interest in Portfolio Management, Investment Management, Equity Research, and Investment Banking, CFA is the right fit. On the other hand, Chartered Wealth Manager (CWM) is the best certification for wealth management, private banking, family offices, and financial advisory professionals. This article details the differences between the two and helps you clear the confusion.

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This certification program is conducted by the U.S.-based CFA Institute (formerly the Association for Investment Management and Research, or AIMR). It is an ideal path-breaking experience for finance and investment professionals seeking a career boost. The course provides a solid foundation in advanced investment analysis and real-world portfolio management, which industry insiders appreciate globally. The study format is designed to meet the demands of the growing investment industry, looking for sharp skills to accelerate market growth and the companies. Considering this aspect as a major factor in initiating this course, the CFA Institute pays utmost regard to ensure the syllabus is updated regularly and continuously meets the market demand. The course covers topics like investment management, financial analysis, stocks, bonds, and derivatives and provides a generalist knowledge of other areas of finance. The candidate is awarded a CFA charterholder on successful exam clearance and equipped to advise companies and institutions like banks, mutual funds, insurance companies, and other financial institutions.

The Chartered Wealth Manager is the best certification program for professionals in wealth management, private banking, family offices, and financial advisory. The American Academy of Financial Management conducts this international certification program based in the United States that marks excellence and is recognized worldwide in the finance industry, including the global wealth management industry and the private banking community.

The Chartered Wealth Manager (CWM) is the highest designation a professional can achieve in wealth management and private banking. The CWM’s core thrust is capital and financial markets theory, financial services organization principles, portfolio management, investment management, and other skills related to the field. A CWM designation is a benchmark for professionals to fulfill certain financial management responsibilities, allowing an employer to allocate the responsibility of assessing the value of companies, performing financial estate analysis, understanding portfolio management, time horizon, balancing risk and returns, identifying market opportunities, market products, handle asset allocation, and manage clients.

CFA exam requirements

A student is eligible to appear for the CFA exam if they have a bachelor’s (or equivalent) degree or are in the final year of a bachelor’s degree program (an update is required on attaining the degree to qualify for the Level II) or must have a minimum of four years of professional experience. In addition, a candidate successfully clearing the exam must fulfill a mandatory four years of experience to achieve the certificate of the CFA program.

CWM Exam Requirements

For the CWM exam, a candidate must have a graduate degree or education equivalent to a post-graduate, approved by the AAFM, and a minimum of three years of wealth management experience.

• The CFA program bridges the gap between market demand and a professional. The program ensures the candidate's aptitude is developed according to the industry's current practice.
• The difficulty level of the CFA exam assures students to put in quality efforts and study rigorously to be noticeable in the employer's eyes.
• The CFA hones a candidate's practical skills, thereby making them an asset for a company with a competitive edge, increasing chances of a hike in the future.
• The CFA program is cheaper than the other certifications, providing sound knowledge about the financial markets and increasing a candidate's expertise.

• The CWM designation commands the respect of the consumers and professionals of the industry.
• The CWM adds value to your resume-boosting your career prospects immensely.
• CWM opens the way to multiple opportunities, and among them is the confidence to start your own business.
• The CWM is the best qualification a professional can achieve in the wealth management industry. Therefore, this designation in a candidate's profile enhances accessibility to industry events and networking opportunities.

CFA exams are an ideal and path-breaking experience for finance and investment professionals. It provides a solid foundation in advanced investment analysis and real-world portfolio management, which industry insiders appreciate globally. However, CWM is the best qualification a professional can achieve in the wealth management industry. Though CWM is difficult, candidates can take at least four attempts to clear it, so they should spend quality time studying.

Choose the one that excites you the most!

This article is a guide to better career alternatives between CFA vs. CWM. We discuss job options, fees, pass percentage, and focus areas to help you decide. You may learn more from the following articles: -

• CFA vs. CQF
• CFP vs. CWM - Which is Better?
• CFA vs. CFQ Differences
• CFA Exams