Career Options in Finance : CFA (Chartered Financial Analyst)

What is CFA

The Chartered Financial Analyst (CFA) Program is a professional credential offered internationally by the American-based CFA Institute (formerly the Association for Investment Management and Research, or AIMR) to investment and financial professionals. A candidate who successfully completes the program and meets other professional requirements is awarded the "CFA charter" and becomes a "CFA charterholder". As of July 2014, there are approximately 120,000 CFA members in 35 countries. The top employers of CFA Charterholders globally are UBS, JP Morgan, Citigroup, Morgan Stanley, and BlackRock.

The CFA exams are widely considered to be difficult, with historical pass rates as low as 32%, and pass rates generally below 50% for the first two levels of the test. Successful candidates take an average of four years to earn their CFA charter. The program covers a broad range of topics relating to investment management, financial analysis, stocks, bonds and derivatives, and provides a generalist knowledge of other areas of finance.
 For more information visit official website:

https://www.cfainstitute.org/programs/cfaprogram/Pages/index.aspx

Eligibility criteria for CFA

You must have a bachelor's (or equivalent) degree or be in the final year of your bachelor's degree program at the time of registration or have four years of qualified, professional work experience (does not have to be investment related) or a combination of work and college experience that totals at least four years.
Part-time positions do not qualify, and the four-year total must be accrued prior to exam enrolment

You must also meet the professional conduct admission criteria (during the application process, you will be asked to sign statements of Professional Conduct and Candidate Responsibility) and have a valid international travel passport (required for enrolment and exam registration)

CFA Course Structure

Chartered financial Analyst program is structured into three levels (Level 1, Level 2, and Level 3). For most of the students CFA course duration takes 2 to 5 years to complete the chartered financial analyst course. There is no limit to number of times you can attempt the course.


CFA Level 1: Focuses more on the basic knowledge of investment tools with some analysis.


CFA Level 2: Focuses more on application of investment tools and concepts along with improving analysis.


CFA Level 3: Focuses more on concepts and analytical methods for effective portfolio management and wealth.

 For more information visit official website:
https://www.cfainstitute.org/programs/cfaprogram/courseofstudy/Pages/index.aspx

CFA Course Duration:

To earn a CFA Charter, one has to give a series of sequential exams Level I, Level II, and Level III. The minimum duration to clear all three exams takes about 2 years.

CFA SYLLABUS

 The CFA Level 1 syllabus focuses on a basic knowledge of the ten topic areas and simple analysis using investment tools.

The syllabus for CFA Level 1 is designed to introduce the candidate to the various concepts of the finance and investment world.

The topic areas covered in the CFA Level 1 syllabus and their weightage is as follows:

Topic	Sub topics
Quantitative analysis(12%)
	Time value of money
	Discounted cash flow applications
	Statistical concepts and market returns
	Probability concepts
	Common probability distributions
	Sampling and estimation
	Hypothesis testing
	Technical analysis
Corporate finance(7%)
	Capital budgeting
	Cost of capital
	Measure of leverage
	Dividend and share repurchase
	Working capital management
	Corporate governance
Financial reporting analysis(20%)
	Introduction
	Financial reporting mechanics & Standards
	Understanding income statements
	Understanding balance sheet
	Understanding cash flow statements
	Financial analysis techniques
	Inventories
	Long lived assets
	Income taxes
	Non-current liabilities and leases
	Financial reporting quality
	Financial statement analysis: Application
Fixed income analysis(10%)
	Fixed income securities
	Fixed income markets
	Introduction to fixed income valuation
	Introduction to Asset backed securities
	Understanding fixed income risk and return
	Fundamentals of credit analysis
Derivatives(5%)
	Derivatives market and instruments
	Basics of derivative pricing and valuation
	Risk management applications of option strategies
Portfolio management and wealth planning(7%)
	Portfolio management: An overview
	Portfolio risk and return part I
	Portfolio risk and return part II
	Basics of portfolio planning and construction
Alternative investment(4%)
	Introduction to Alternative investment
	Mutual funds
	Exchange traded funds
	Real Estate
	Private equity
	Hedge funds
	Commodities
Equity Investment(10%)
	Market organisation and structure
	Security market indices
	Market efficiency
	Overview of equity securities
	Introduction to Industry and Company analysis
	Equity valuation- Concepts and Basic tools
	Dividend and share repurchases
Economics(10%)
	Demand & supply analysis: Introduction
	Demand & supply analysis: Consumer demand
	Demand & supply analysis: The firm
	The Firm & market structures
	Aggregate output, Prices, Economic growth
	Understanding business cycles
	Monetary and Fiscal policy
	International trade and Capital flows
	Currency exchange rates
	Demand & supply analysis: The firm
Ethics(15%)
	Standards of professional conduct
	Global Investment Performance standard

TOPICS & STRUCTURE

Topic Area	Level I	Level II	Level III
Ethical and Professional Standards	15	10-15	10-15
Quantitative Methods	12	5-10	0
Economics	10	5-10	5-15
Financial Reporting and Analysis	20	15-20	0
Corporate Finance	7	5-15	0
Equity Investments	10	15-25	5-15
Fixed Income	10	10-20	10-20
Derivatives	5	5-15	5-15
Alternative Investments	4	5-10	5-15
Portfolio Management	7	5-10	40-55
Total	100	100	100

Check out below documents for elaborated syllabus and study material:

StudySessions_CFA_L1

Schweser's Secret Sauce for CFA Level 1

CFA Course Fees

Payment Deadlines	Program Enrollment (New Candidates Only)	Exam Registration	Total Cost
23 September 2015	$450 (One Time Charge)	$650	$1,100
17 February 2016		$860	$1,310
16 March 2016		$1,280	$1,730

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