[Crash_test_dummy]

dude, you should be an education consultant. If you charged for all this advice, you'd make a killing!!

Originally Posted by Tumtum

CTD.

I make an educated guess in saying that CFA will be an overkill for the kind of jobs that you want to get into. However, just think ahead in time. Are these kinds of profiles the ones that you won't mind being into for the rest of your life? If the answer is yes, then you may well go for an FRM as your needs will be sufficiently met.

BUT BUT BUT, if the answer is NO, then I think you must go fo a CFA simply because it is wider in scope (vis-a-vis the FRM) and will only aid you better than an FRM if you want to get into equity research. (No matter what one argues but equity research is one of the key areas in which CFA has a dominant presence like no other designation).

Valid point. I've read a lot about trading and hedge funds as career options and many sources say that it isnt a career option that you can sustain life long...too stressful, too demanding, etc etc. and after a while you just get burned out and wanna settle down for something less painful, like equity analysis or accounting or something (or if you've been reasonably successful at it for 10 years, you wont need to work again at all ). I guess in that scenario, CFA is a good choice coz it opens up plenty of options for you to fall back on. But if thats the case, then i should go in for FRM to satisfy my short term goals and then go for CFA for my long term goals, right? Why do contingency planning 15 years in advance?!

Originally Posted by Tumtum

As far as overlapping of content is concerned, let me be very clear that it is in the areas of derivatives and some part of quantitative methods that you will find FRM and CFA curriculums to intersect, but rest of it is pretty different.
Also, CFA has a heavy basis (throughout the curriculum) in Accounting and FSA which is not the case with FRM. FRM is a bit more quant than CFA but then quants actually get a weightage of only 10% in the total FRM curriculum and hence FRM is a lot of reading with quant techniques interspersed into it.

Sounds tempting to me...coz im really irritated with the amount of FSA involved in CFA...i guess its only gonna get worse in l2 and l3, right? I honestly dont see myself doing accounting or statements later in my career. I like being closer to the money, like in trading and front office (am i sounding naive here?). Also, im quite comfortable with quant, so that isnt much of a threat to me. Derivatives happens to be my fav topic in all of finance.

Originally Posted by Tumtum

Frankly speaking, I will not advise you regarding going for FRM or CFA or dropping one for the other. I can only give you a bird's eye view of what lies on store for you if you pursue some option. The decision is yours but yes, an educated guess certainly points out to the fact that CFA for the kind of roles you want AS of NOW, is definitely an overkill and FRM is more relevant.
Hope that helps.

I guess i need to think really hard about my choices and make a decision quickly. Do you think with an engineering background, non-finance experience, familiarity with finance concepts (i have attepted the L1 once, u know!), and comfort with math will permit me to clear FRM this year if i start from scratch now? (Im willing to start studying immediately). Whats the expenses like?

[prasadhegde]

Hi I m planning to enroll for FRM(hopefully 1st deadline) can you please briefly tell me the career progression in India , i mean will the FRM certification add weightage to my resume so that I can market myself to mainstream risk mgmt career area.also do you think 6-7 months of prep is enough considering a consistent study time of 3-4 hrs everyday.

[Tumtum]

Originally Posted by Crash_test_dummy

Valid point. I've read a lot about trading and hedge funds as career options and many sources say that it isnt a career option that you can sustain life long...too stressful, too demanding, etc etc. and after a while you just get burned out and wanna settle down for something less painful, like equity analysis or accounting or something (or if you've been reasonably successful at it for 10 years, you wont need to work again at all ). I guess in that scenario, CFA is a good choice coz it opens up plenty of options for you to fall back on. But if thats the case, then i should go in for FRM to satisfy my short term goals and then go for CFA for my long term goals, right? Why do contingency planning 15 years in advance?!

My friend, why at all worry or even think of contingency planning 15 years down the line coz by then you will have the deadliest weapon in your aresnal- 15 years of work-experience. Isn't it? Frankly, its a choice you make now and then you have to reap the benefits. Pretty much like we study in "capital budgeting".

If you have been a derivatives trader for 15 years then you probably will be a derivatives strategist for some region (Asia, EMEA, NA etc) by then at Morgan Stanley, JP Morgan, Wachovia or you will be a really senior risk manager at some MF/Hedge Fund (why not think aggressively- you may be managing a private fund of yours through the contactss you develop in these years !). The possibilities are endless!
All the best !

[main_aisa_hoon]

HEY TUMTUM
APART FROM SCHWESER NOTES FOR FRM( AVAILABLIE AT MUMBAI AT LAXMI COPY CENTRE), WHAT OTHER BOOKS WOULD BE REQUIRED FOR CLEARING THE FRM EXAM. WILL hull SUFFICE ?dO YOU HAVE ANY IDEA ABOUT THE COST OF THESE XEROX NOTES?

MAH

[Tumtum]

Originally Posted by main_aisa_hoon

HEY TUMTUM
APART FROM SCHWESER NOTES FOR FRM( AVAILABLIE AT MUMBAI AT LAXMI COPY CENTRE), WHAT OTHER BOOKS WOULD BE REQUIRED FOR CLEARING THE FRM EXAM. WILL hull SUFFICE ?dO YOU HAVE ANY IDEA ABOUT THE COST OF THESE XEROX NOTES?

MAH

I think Schweser notes is the most complete material. Hull alone wont suffice. Cost for 2006 material was INR 1400 (zeroxed) at Laxmi Zerox. the 2007 material will be available at May'07-end. So I don't know its cost yet.

Regards.

[prasadhegde]

Originally Posted by Tumtum

My friend, why at all worry or even think of contingency planning 15 years down the line coz by then you will have the deadliest weapon in your aresnal- 15 years of work-experience. Isn't it? Frankly, its a choice you make now and then you have to reap the benefits. Pretty much like we study in "capital budgeting".

If you have been a derivatives trader for 15 years then you probably will be a derivatives strategist for some region (Asia, EMEA, NA etc) by then at Morgan Stanley, JP Morgan, Wachovia or you will be a really senior risk manager at some MF/Hedge Fund (why not think aggressively- you may be managing a private fund of yours through the contactss you develop in these years !). The possibilities are endless!
All the best !

Hi I am sorry if am replying to a wrong message.I have enrolled into securities market programme from IICM and I also want to take up FRM alongside I have 2.5 yrs of exp in Reinsurance industry,after completion of SMP i want to work for an yr in equity research and then i would pursue MBA from any top schools.So I wnated to ask whether taking up FRM along with smp would make sense? and is it practical? or should i do it once i complete my MBA?? please give me your opinion on this

[Tumtum]

Originally Posted by prasadhegde

Hi I am sorry if am replying to a wrong message.I have enrolled into securities market programme from IICM and I also want to take up FRM alongside I have 2.5 yrs of exp in Reinsurance industry,after completion of SMP i want to work for an yr in equity research and then i would pursue MBA from any top schools.So I wnated to ask whether taking up FRM along with smp would make sense? and is it practical? or should i do it once i complete my MBA?? please give me your opinion on this

Hi Prasad.

Now look, I do understand that you want to make it to the best of b-schools and if you have less work-ex, then one way to strengthen your CV is be having a good academic record and probably a foreign degree such as FRM. But more than anything, I would reiterate something that I told CTD also.

This is a specialised course, and if your aim is to add weight to your CV by having it as a suffix after your name then I don't think it will help you much because

1) You won't be able to use the designation until you have 2 years of relevant work-ex.
2) All that you study will be a waste since you hardly will use any of it.
3) As you get into the grind of an MBA program, you may feel later on that doing all this for the very sake of making it to an MBA was not worth the effort or was not required!
4) For a career in research (you said in your post above that you want to work in Equity Research for a year), the SMP is far better suited than an FRM (which is totally unrelated to ER).

Also, my friend, do not underestimate the importance of the SMP. UTIICM is one of the fine professional education institutes in this field and it will definitely get you a good job after you graduate from it.

My take is, that FRM should be taken one a person starts function in a risk management role and not just for adding weight to CVs or to get into b-schools or for other purposes.

[Anchal Jain]

Hi Tumtum,

Currently I am working in an IT company as a Business Analyst in Banking and capital markets domain. I am an MBA in finance and a B.com (hon). My current job is not at all finance oriented and I am planning to switch in near future. I have been thinking about doing either FRM or CFA.
Just wanted to know is an FRM certificate widely recognized in India or from an Indian perspective I should go for a CFA. The only problem with CFA is the time constraint.
I am looking for a certificate/degree which would help me in long term to secure a good profile and package in India.
Please suggest which one should for.

Thanks

[Crash_test_dummy]

Originally Posted by Anchal Jain

Hi Tumtum,
Just wanted to know is an FRM certificate widely recognized in India or from an Indian perspective I should go for a CFA. The only problem with CFA is the time constraint.
I am looking for a certificate/degree which would help me in long term to secure a good profile and package in India.
Please suggest which one should for.
Thanks

You asked the question to TumTum, but im tempted to post my view here:

If you are not clear about what domain within finance you want to work in, then go for CFA coz it'll give you a broad perspective and an option to choose any field you like later on in life. For a person who has little or no exposure to finance, or for someone who isnt sure about what career path to follow within finance, CFA is a good option. But since you've completed your MBA in finance, ideally you should know by now which field of finance you wish to enter. If that field happens to be risk management, go for FRM. If that field happens to be research or accounting, go for CFA. If you still dont know, the safer of the two options would be CFA coz it allows you to explore. FRM will restrict you to a narrow domain of risk and quant. If you go for FRM without thinking whether you want a career in risk, then you would be again stuck with a degree that leads you nowhere...you will be in the same position as you are now...doing work that is unrelated to your qualification. A person interviewing you for accounting or research will not be as impressed with your FRM as he would be with your CFA. So think about your career and then decide the degree needed, rather than earn a degree that is popular and then decide what career that degree will allow you to follow. As for your question, CFA is more widely recognized in india by the general headhunter crowd and FRM is well recognized by the risk management ppl. Basically, FRM is the equivalent of CFA in the risk-management world.


I found a good blog for FRM discussion..check it out:
frm exam prep

[Tumtum]

Hi all !!

I came to know from the Laxmi Zerox guys that the new updated 2007 material will be available only at the end of May’07, leaving just 5 months to study for the exam.
Hence, finally after a lot of introspection and comparison about the updated syllabus, I came to a conclusion that despite some differences in the syllabus of 06 and 07 exams, it all boils down to a few extra readings in the newer one and that neither the topic weightage has been changed nor any topic has been removed vis-à-vis the 2006 syllabus.
Hence I ordered the 2006 material from Laxmi and got it y’day itself. The cost is INR1400. The set consists of 6 books consisting of past exam and practice papers.

I will now begin reading for the exam tomorrow onwards. At the onset, I feel that the material covers many topics already known to me but the section on market risk measurement and management looks a toughie. Credit/Operational risk and Investment Management look manageable too. Let me get my hands fully dirty and then I will let you know soon what the game is like !

Keep posting and giving your updates junta !