CFA vs CFP
CFA and CFP are both related to finance. It can be a bit confusing looking at the two terms. CFP stands for Certified Financial Planner, and CFA stands for Certified Financial Analyst. Well, one can see that there is a difference, as one is a planner and the other is an analyst.
First of all, let us see how one gets a CFP and a CFA title. A person gets a CFP title after he passes an examination conducted by the International Board of Standards and Practices For Certified Financial Planners. On the other hand, for getting a CFA title, one would have to take three examinations, which cover subjects like economics, accounting, money management, ethics and security analysis. The Association for Investment Management and Research confers the title.
The Certified Financial Planners mainly give advise to individuals. On the other hand, the Certified Financial Analysts give advise to various institutions, like banks, mutual funds, pension funds, insurance companies and security firms.
Certified Financial Planners help with retirement planning, stock investing and other financial planning. On the contrary, Certified Financial Analysts focus on stocks and market analysis, helping the various companies and institutions to make the correct investment decisions.
Where the CFP is considered to be a generalist, the CFA is considered to be a specialist.
While the Certified Financial Planners deal more with comprehensive financial planning, Certified Financial Analysts deal more with investment portfolios.
Another thing that has to be mentioned is, is that a Certified Financial Planner should always keep his knowledge up-to-date, although, this does not mean that a Certified Financial Analyst should not be up to date.
Summary
1. CFP stands for Certified Financial Planner, and CFA stands for Certified Financial Analyst.
2. The Certified Financial Planners mainly give advise to individuals. On the other hand, the Certified Financial Analysts give advise to various institutions, like banks, mutual funds, pension funds, insurance companies and security firms.
3. A person gets a CFP title after he passes an examination conducted by the International Board of Standards and Practices For Certified Financial Planners.
4. To get a CFA title, one would have to take three examinations, which cover subjects like economics, accounting, money management, ethics and security analysis. The Association for Investment Management and Research confers the title.
5. CFP is considered to be a generalist, and the CFA is considered to be a specialist.
6. While the Certified Financial Planners deal more with comprehensive financial planning, Certified Financial Analysts deal more with investment portfolios.