Is getting a CFA certificate really helpful for an IITian to start a career in finance? Do suggest what are the various other options that one can explore during his stay at IIT campus so as to make a better profile for finance/ Investment banking.

CFA is an excellent educational milestone for current and future finance/investment professionals. It can be helpful in getting a job in this industry.

Hi, CFA is now becoming a rite of passage for almost everyone who wants to pursue a career in Finance. It is certainly a very good examination. There are six books that you will have to read and all six are extremely well written. Preparing for it takes time and if you have the time, it is a fantastic experience to labor through the six books. You specifically asked if CFA will help you start a career in Finance once you're out of IIT. I think the answer is yes. There are some qualifiers which I will later come to, but to summarize, the answer is Yes. It is helpful for the following reasons: CFA is mainly an exam for people who would like to become equity analysts or portfolio managers. It has very little focus on derivatives and risk management. But if you are en Engineer who does not have a basic understanding of investments and valuation, CFA is a great start. It will help you master these basics. I also think it is helpful, because it opens the world of finance before you. At the end of it, you might infact realize that finance is not for you. :) To decide this, you first need to udnerstand what finance is, so again, CFA is helpful. And finally, the fact that you have given CFA demonstrates to your employers that you are interested in the field and that you've proactively taken the initiative to write a difficult examination. I spoke of qualifiers earlier. I just wanted to add that CFA will not ensure employment. If you do it right and master the basics, it will make your interviews and selection process easier. It is also a costly examination. So be really sure about the time you have to prepare for it. Hope this helps.

My opinion is that CFA would be really helpful to an IITian interested in pursuing a career in Finance. I would say that you should closely watch the companies that are coming for recruitment at IIT. That would give you a good understanding of how to get into those cos. I think the following would be useful: Get a GREAT CGPA: Cos. love to recruit people who work diligently and seriously. Your CGPA is a reflection of your hard work (or the lack of it!). It is absolutely going to be one of most important deciding factor. So concentrate on studies (Specially your Quant, Stats and Computer Science subjects). Research on the companies: Cos. really love students who know a lot about them. Understand what they are looking for (Speak to people whom they have shortlisted). If you name a few alumni in your interview, they just love it. Closely look at their websites. Remember their core values (Yes this is very important from clearing the HR Round). Create a full story on WHY you want to join that particular company. Understand the Job Profiles completely: When you are applying to a company for a particular job your app has to completely customized. At that point of time, if you fully understand the job profile, and show your fit for the same - it really helps. So try and understand the profiles. You can use wetfeet guides (https://www.wetfeet.com/) or Vault Guides (http://www.vault.com/wps/portal/usa) to know more about the profiles. Get differentiators on your resume: As freshers out of IIT, all resumes look similar. It is important to differentiate yours. CGPA is usually the first such differentiator plus you can pursue certifications that help you establish your strong interest in Finance. Out here, I would say that the following would be helpful: CFA (http://cfainstitute.org/): If you want to pursue a career in Equity Research/ IB/ PE. CFA is the gold certificate in the area of Finance and would definitely be very helpful in general. It establishes your strong interest and knowledge in Basics of Finance. As an IITian, covering some aspects like Quant, Corporate Finance should be easy. You might face some difficulty in FRA, Ethics etc. To know more about the Exam Pattern and the CFA Exam, take a look at http://www.edupristine.com/ca/courses/cfa/ If you want to sample the kind of content you need to prepare, you can view 10 free video tutorials on CFA at http://www.edupristine.com/ca/free-10-day-course/ and more sample material on: http://www.edupristine.com/ca/downloads/cfa/ FRM (http://www.garp.org): This is a Quant oriented course and covers niche topics like Risk Management, Derivatives, Value at Risk. It is useful if you are looking to get into mid office job. Typically all banks, hedge funds, trading houses etc. have mid office departments that manage various kinds of risk (Market, Credit and Op Risk). The Risk Management field has evolved into a real quant field. IITians definitely have an edge in this (though eventually this field is dominated by PHDs in Quant). You can view some sample content to know more about the exam on http://www.edupristine.com/ca/downloads/financial-risk-manager-downloads/ and details regarding the course on http://www.edupristine.com/ca/courses/frm-program/ PRM (http://prmia.org): This is similar to FRM. The only difference is that the exam is more conceptual (As compared to FRM where a lot of case studies are asked). Also you can give module wise test in GRE/ GMAT fashion, scheduling it as per your convenience. You can get the details fromhttp://www.edupristine.com/ca/courses/professional-risk-manager/ and some sample content from: http://www.edupristine.com/ca/downloads/professional-risk-manager-downloads/ CFA is more general in nature and when you are just passing out of IIT, you want your options to remain open. So pursuing CFA might make more sense. However you can just give CFA Level I in your final year at IIT, whereas you can complete FRM and PRM while in IIT, which can be a good plus.

As the devil's advocate with the noble intention of providing you with a totally different perspective .... When a company sends its HR guy to IIT, it is interested in recruiting the best engineer in the market. When the HR guy meets a bright IIT engineer who instead of concentrating his attention on studying engineering has spend his precious time studying finance, does he really get impressed and offer him/her a job? Even if he is personally impressed, its highly unlikely that companies will be searching for Finance Aspirants in an Engineering campus, and not recruiting CAs and CFAs with economics or commerce background. The whole paradigm shifts when the same company visits a Management Institute and meets an Engineer with MBA in Finance, or a CA/CFA with MBA in Marketing. When a company require employees with multi functional background, they search among the MBAs, not in an engineering college or any other graduate level courses.

A slightly contrarian view based upon my own experience of job hunting and later interviewing and recruiting students from IITs: 1. Upgrade your soft skills - written, spoken and presentation- these are crucial for making an impact during interviews and later in your career. 2. Look to gain some practical experience through internships/industry projects. Experiment at an early stage where your downside is limited and you can identify a niche that best suits your skills & personality - e.g. trading, equities research, M&A etc. This will allow you to be more credible during the application/interview stages. 3.Try and marry the strong quantitative skills that come with your IIT pedigree to the real world - for example, run a small or model portfolio, experiment with quantitative trading strategies, play poker, found a start up, etc. There are far too many applicants who look great on paper with all the relevant qualifications and grades but fall short at the interview stage. Hope this helped.

I feel for an IIT aspiring to join a financial services or an MBA, should show finance focus on their resume. FRM , CFP are too specific. You should have a more broad based certifications.  FLIP certifications (http://www.learnwithflip.com) are short term certifications with good coverage and acceptance by the industry.

Unless and untill you are looking for a niche career as a Financial Analyst - courses such as CFA and FRM (for risk management), would be of less importance. They wouldn't harm you, but benefits are less. 1. If you are aiming for Corporate Banking, Investment Banking etc., go for relevant certifications that might help you in adding relevant value to your CV. 2. Get relevant experience through summers etc. This will show that you are focused in you objectives, and you have the skills as well as the knowledge.

While everyone is suggesting to get a certificate and i am not against it, but it will far better if you get into the real trading world, with real money, build a portfolio, show your returns over a period of time (the same time you would take to get your certificate) and email that trading history to the company you want to work in. You will be sent a term sheet rather than an offer letter or a ready portfolio to work upon with far better negotiating terms for yourself. I know few such people (not IITians, but arts graduates and under graduates, trying to get a degree through IGNOU) who are trading on a 5/50 arrangement for a few million quid. Think from the point of view of the company owner, rather than the HR rep who has come and is just another jobber. They cant and dont understand the urgency which investors have to get their money throwing up returns. ANYONE giving that is great - rest are all liabilities, degrees and certificates included. PS - I run a quant services firm for HNIs.