cfa vs actuary This is a topic that many people are looking for. khurak.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, khurak.net would like to introduce to you CFA or Actuary? Which should I study? (Subscriber Question). Following along are instructions in the video below:
“Guys. It s mj. The students actually and what we re gonna do in this this video is answer. A student question which i ve actually seen quite a few and the question is should i study the cfa or should i study the financial route of actuarial science.
So what we re gonna be doing in this video is just focusing on comparing the financial actory. That s people who go to the fellowship with finance and not life. Health. Pensions or those other ones and just compare that one on its own to the cfa qualification.
So what a lot of people want to know first are the exams. And i think the exams for the cfa are much easier than that for the actuarial profession. The reason for that is with actuarial science. Your writing.
I think up to 15 exams. It is now where is what the cfa..
It s only three exams and not only do you have less exams for the cfa. But the exams are actually a little bit easier now why do i say that well if you look at the cfa exams. How they re structured is that they have been designed in such a way to cover every little aspect of the course. So.
Though actuaries and cfa s. Cover a lot of the same material. The cfa exam will make sure that each question covers one of the sections. Whereas with the actual exams.
It s a little bit like playing roulette you either get lucky and they ask you a question that you re very comfortable with or they don t in which case you you suffer through those exams. So the cfa exam structure is is lot well this is just my personal opinion. I do find it easier in the sense that they re asking you ten marks on each section. Whereas with the actual exams you could get 50 marks on one section and if you either know it or you don t.
There is a little bit of luck involved and we see that with the pass rates. I think cfa level three the pass rates are quite comfortably in the 60 whereas for actuarial science..
Sometimes it s below 10. We ve even seen some zero percent pass rate on the fellowship exams. So that is the exams out of the way what about the working environment and i think. This is where a little bit of confusion comes in is the financial actuary.
And the cfa are not actually doing the exact. Same job your financial actory is someone who s more involved in investment strategy and portfolio construction. Whereas your cfa is more involved in investment implementation and security selection. So how that works is it would be an actor ii who looks at the liabilities of an institution or does the whole you know looks at they hope profile and says okay we need so many bonds we need so many equities.
We need so many of us they would then contact a asset manager. Who would normally be ac of a person and say i want you to get me bonds with this profile and then that c of a gap will go to the market and try and find the best price securities that fit that criteria of course. There are different structures and setups and so that is just one example of how we can see it in the financial world also both students or recently qualified people of these degrees will basically start in the same place as financial analyst. So you could sort of as a cfa and work your way into investment strategy.
If while you re working you just realize that that s a better natural fit for you you can then go on to it. And i think that that s the one the one problem with studying actuarial science and going the finance route is that regulation doesn t stipulate that they need an actuary in that investment position..
What we have with life insurance and general insurance and pensions. Is that you need an actuary to to sign off you need that statutory role. Whereas with finance. You re not really seeing that role and that does limit the power of the the actuary.
So actuarial salaries in the financial sector are not as great as those in the life sector also another big disadvantage of the actual society or rather. I should say a massive advantage of the cfa is that the cfa is globally recognized. Most investment houses around the world. Know.
That the cfa is of a certain standard with the actuarial professions and especially the way that they fractured by you know their location. People don t know like if you re a company in singapore. You don t know if the south african fellow actuaries are any good whereas. You know a cfa designation is of a certain standard and i think that makes people a lot more comfortable hiring cfas rather than actuaries in finance especially.
When you re playing at that international job market. But look these are just my my thoughts..
My opinions. I am biased towards the actuarial profession. Because that s the one i chose and before you make this decision. It s very very important that you consider alternative sources.
Read up on this. Ask questions and figure out what is the best career path for you. But whatever you do i wish you best of luck. And if you have any other questions.
Please feel free to put them in the comment section. Below. And let me know as i ll try make a video to answer them. ” .
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