CFA vs. CIPM: Which Certification Is Better?
- Kateryna Myrko
- Mar 15
- 4 min read
In the finance industry, professional designations serve as a key differentiator, equipping individuals with the expertise and credentials necessary to advance in their careers. Two highly regarded certifications offered by the CFA Institute are the Chartered Financial Analyst (CFA) and the Certificate in Investment Performance Measurement (CIPM). While both certifications are valuable, they cater to distinct career paths and professional needs. The question of which is better—CFA or CIPM—depends largely on an individual’s career objectives, expertise, and aspirations. CFA vs. CIPM: Which Certification Is Better , CFA , CIPM
Understanding the CFA and CIPM Certifications
Chartered Financial Analyst (CFA) CFA vs. CIPM: Which Certification Is Better , CFA , CIPM
The CFA designation is globally recognized and widely regarded as the gold standard in investment management. It focuses on investment analysis, portfolio management, ethics, and financial reporting. This program is ideal for individuals seeking careers in asset management, equity research, investment banking, and financial advisory roles. CFA vs. CIPM: Which Certification Is Better , CFA , CIPM
Structure and Curriculum
The CFA program consists of three levels:
Level I: Covers investment tools, financial reporting, and ethical and professional standards.
Level II: Focuses on asset valuation and advanced financial analysis.
Level III: Concentrates on portfolio management, wealth planning, and integrating investment concepts.
Exam Difficulty and Pass Rates
The CFA exams have a reputation for being among the most challenging in the finance sector.
Candidates typically spend over 300 hours per level in preparation.
Pass rates are low:
CFA Level I exam pass rate:
February 2024 CFA Level I exam pass rate: 44%
May 2024 CFA Level I exam pass rate: 46%;
CFA Level II exam pass rate:
May 2024 CFA Level II exam pass rate: 59%
August 2024 CFA Level II exam pass rate: 47%;
CFA Level III exam pass rate:
February 2024 CFA Level III exam pass rate:
49% August 2024 CFA Level III exam pass rate: 48%.
Certificate in Investment Performance Measurement (CIPM)
The CIPM certification specializes in investment performance evaluation, risk assessment, and attribution analysis. It is particularly valuable for professionals involved in performance measurement, portfolio evaluation, and reporting within asset management firms.
Structure and Curriculum
The CIPM program consists of two levels:
Level I: Covers foundational performance measurement concepts, attribution, and Global Investment Performance Standards (GIPS®).
Level II: Focuses on performance appraisal, risk management, and manager selection.
Exam Difficulty and Pass Rates
CIPM exams are easier than CFA exams, as they focus on a specialized domain rather than broad financial analysis.
Candidates typically study 150-200 hours per level.
Pass rates are higher than CFA exams, as of September 2024, the pass rates for the CIPM Level 1 is 35% and 52% for Level II. CFA vs. CIPM: Which Certification Is Better , CFA , CIPM
Career Prospects: CFA vs. CIPM
CFA Career Opportunities
The CFA charter is highly versatile and opens doors to various career opportunities across the financial industry. Common job roles for CFA charterholders include:
Portfolio Manager
Equity or Fixed Income Analyst
Investment Banker
Risk Analyst
Chief Investment Officer (CIO)
Financial Advisor
CFA charterholders often work in asset management, hedge funds, private equity, and investment banking, making it a preferred designation for professionals looking to build a broad financial career.
CIPM Career Opportunities
The CIPM designation is more specialized and is ideal for professionals working in investment performance analysis, risk measurement, and manager selection. Common roles for CIPM holders include:
Performance Analyst
Risk Manager
Compliance Officer
Investment Consultant
Performance Reporting Specialist
The CIPM certification is particularly valuable for those working in institutional investment firms, pension funds, and asset management companies, where accurate performance measurement and risk evaluation are critical.
Which Certification Should You Choose?
Choose CFA If:
You want a broad finance career: The CFA provides a solid foundation in financial analysis, portfolio management, and investment banking.
You aim for leadership roles: CFA charterholders often ascend to senior positions, such as Chief Investment Officer or Portfolio Manager.
You are prepared for a rigorous exam process: The CFA requires extensive study and commitment over several years.
Choose CIPM If:
You specialize in performance analysis: The CIPM is tailored for professionals involved in investment reporting, attribution analysis, and risk measurement.
You want a focused and shorter program: With only two levels, the CIPM requires less study time than the CFA.
You work in a compliance or risk role: If your career involves investment governance, risk management, or ensuring adherence to GIPS®, the CIPM is highly relevant.
Final Comparison Table
Feature | CFA | CIPM |
Number of Levels | 3 | 2 |
Primary Focus | Investment analysis & portfolio management | Performance measurement & risk assessment |
Study Hours per Level | 300+ | 150-200 |
Exam Pass Rates | ~40-50% per level | ~42% (Level I), ~44% (Level II) |
Career Relevance | Asset management, investment banking, research | Performance analysis, risk management, compliance |
Global Recognition | Highly recognized | Niche but respected |
Both the CFA and CIPM certifications hold significant value in the finance industry, but they serve different purposes. The CFA designation is best suited for those seeking a broad career in investment analysis, portfolio management, and financial advisory, while the CIPM certification is ideal for professionals specializing in investment performance evaluation and risk assessment.
Ultimately, the choice between the CFA and CIPM depends on your career aspirations. If you aim to work in investment management or financial analysis, the CFA is the better choice. However, if you are passionate about performance measurement, risk assessment, and compliance, then the CIPM may be the perfect fit for your career growth.
Are you preparing for the CIPM Exam ?
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