Chartered financial analyst is the full form of CFA, it is one of the top designations in the investment management and financial management field. This is an excellent career option for candidates who are interested in investment and financial fields. The CFA Institute provides the CFA course to train students in this field. This job role is globally recognized and offers a lucrative career to candidates who pursue the CFA course. Moreover, the CFA course is one of the most recognized courses in the field of investment management.
The course provides deeper knowledge of the investment industry to the students so that they can get high-paying jobs in the same field. The candidates can also get job opportunities in the international market. The CFA course in India has three levels, and one must clear all these three levels to become a CFA.
Candidates who pursue the CFA course will learn investment and financial management skills. It offers a practical overview of the investment market to students so that they can understand the subject properly. On the other hand, many people believe that this is one of the most difficult courses in the world. However, here we have listed all the aspects of the CFA course that you need to know.
Scope of The CFA Course
The chartered financial analyst course has many benefits for the candidates. Those who pursue this course can get plenty of job opportunities in different companies.After completing the CFA course successfully, students can apply for various job profiles in the finance and investment management field.
After completing the CFA course, the graduates can work in numerous job profiles as per their choices. Some of the major areas in which the CFA graduates can work include auditing, taxation, accounting, financial services, etc. This is why one can easily get a job in the financial field after successful completion of the CFA course. Also, the candidates can earn higher salaries after completing the CFA course.
Skills Required for The CFA Course
CFA course is one of the tough courses in India. So,clearing the exams of the course is not sufficient to become a CFA professional. One should have some additional skills as mentioned below to perform the tasks in a specific job profile properly.
- Attention to details
- Communication skills
- Time management
Course Fee for CFA Course
The fee for this course varies depending on the institute. The average course fee for this course ranges from 30,000 to 1.5 lakh rupees.
Eligibility Criteria for The CFA Course
Those who want to pursue the CFA course need to meet the eligibility criteria of this course. The eligibility for the CFA course is as follows:
- Candidates who want to pursue the CFA course should have a bachelor’s degree in any stream. However, students from financial backgrounds can understand this course very well.
- Also, those who are in the last year of their bachelor’s degree program can apply for the CFA course. But the candidates need to complete the bachelor’s degree program before the CFA level 2 exam.
- The candidates should also have at least four years of work experience to apply for this course.
Exams for Chartered Financial Analyst Course
Those who want to pursue the CFA course will need to clear three levels of the exam that are conducted by the CFA Institute. These exams are usually conducted in the month of June and December in different exam centers in the country. One needs to clear these exams one by one to complete the chartered financial analyst course. The results of the level 1 and level 2 exams will be declared within 60 days of the exam. The result of the level 3 exam will be declared within 90 days of the exam.
CFA Level 1 Exam
In the first step, the students need to complete the registration process for the level 1 exam by visiting the official website of the CFA Institute. There you can give the necessary information and select an exam center. In case you are eligible for any scholarship, then you can register for it and avail of this benefit. Otherwise, you will need to pay the exam fee online by selecting the appropriate payment method.
The level 1 exam contains 240 MCQ questions from different topics like ethical professional standards, fixed income derivatives, quantitative methods, equity investments, and many more. This exam is divided into two parts, morning session and afternoon session. Each session consists of 120 questions and lasts for 3 hours. This exam is usually conducted in the first week of June and December, and the minimum pass mark of this exam is 43%.
CFA Level 2 Exam
The registration process for the CFA level 2 exam is similar to the CFA level 1 exam. So, you should follow the instructions and complete the registration process as you did in the level 1 exam.
The level 2 exam of the chartered financial analyst course has 120 MCQ questions from the same topics as the level 1. The exam is conducted in two sessions one is in the morning session, and the other one is in the evening session. Each session has a duration of three hours and includes 60 MCQ questions. The level 2 exam is conducted in the first week of June. One should score at least 45% marks in this exam to clear it.
CFA Level 3 Exam
The registration process for the level 3 exam includes several steps. You will need to visit the official website of the CFA institute and fill the registration form online. In the registration process, you also need to select the eligibility criteria, profession, employer, and education level. Read the candidate agreement carefully and accept it. Lastly, you will need to pay the fee online by selecting the appropriate payment method.
The exam pattern of the CFA level 3 exam is different than the level 1 and level 2 exams. The exam includes essay and case study questions in the morning and afternoon sessions, respectively. There are 8 to 12 essay questions in the morning session with a maximum of 180 marks. In the afternoon session, there are 60 questions in 10 case studies. Each exam session has a duration of 3 hours. The CFA level 3 exam is usually conducted in the first week of June, and one should score at least 56% marks in the level 3 exam of the chartered financial analyst.
Exam Centers of The CFA Exams
There are numerous exam centers for the CFA exams in India. You can select any of the following exam centers to give the CFA exams.
The exam centers for the June exam are Ahmedabad, Chennai, Hyderabad, New Delhi, Mumbai, Bangalore, Bhopal, Kolkata, Lucknow, And Pune.
The exam centers for the December exam are Kolkata, Mumbai, Lucknow, Bangalore, And New Delhi.
Syllabus for The CFA Course
The level 1, level 2, and level 3 exams of the CFA course usually includeten major topics. One should know the in-depth syllabus of the CFA course in order to study well and score good marks at each level. Also, the syllabus of this course is designed in such a way that the difficulty level increases with the level of the exam. The following are the subjects that you are going to study in the CFA course.
CFA Level 1 Syllabus
The level 1 syllabus includes topics related to various concepts of financial and investment management. The topics covered in this level are as follows:
- Quantitative analysis
- Fixed income analysis
- Financial reporting analysis
- Equity investment
- Corporate finance
- Alternative investment
- Portfolio management and wealth planning
CFA Level 2 Syllabus
The topics taught in the level 2 exam of the chartered financial analyst course are as follows:
- Quantitative methods
- Equity investments
- Fixed income
- Ethical and professional standards
- Corporate finance
- Alternative investments
- Financial reporting and analysis
- Portfolio management
CFA Level 3 Syllabus
The level 3 syllabus mainly focuses on wealth planning and portfolio management. Apart from that, the syllabus also includes many other topics, as mentioned below.
- Investment tools
- Asset classes
- Ethical and professional standards
- Portfolio management and wealth planning
Career Opportunities for The CFA Course Graduates
After successful completion of the CFA course, candidates can get jobs in various departments in the government and private sectors. The following are some of the top job profiles for the candidates of the CFA course.
- Business Consultant
A business consultant in any company analyses the financial statements of the company and advises to meet future goals. The individual in this job profile deals with various business problems and gives possible solutions for the specific problems. The average salary of a business consultant is 9.6 lakh rupees per year.
- Portfolio Manager
The main role of a portfolio manager is to monitor the investment and financial status of private clients. Portfolio managers usually follow the predetermined strategies for investment and work with individuals as well as families. Some managers also work with financial institutes and corporate investors. The average annual salary of a portfolio manager is 8 lakh rupees.
- Risk Manager
A risk manager usually analyses the risk in the market and prepares a specified plan for this. He/she also executes the plan to reduce the risk. They also focus on developing risk models and provide research and analytical support to the clients. This role demands some special skills like quantitative and analytical skills for smooth operations. A risk manager can earn an average salary of 10 lakh rupees per year.
- Chartered Financial Analyst
This is the most popular job profile for the graduates of the CFA course. The role of a chartered financial analyst is to analyze the financial portfolios and provide suggestions as per the analysis report. The individuals in this job role also set financial goals and plan step by step process to achieve those goals.
- Private Bankers
Private bankers usually provide banking services to the clients of the bank and ensure to fulfill their needs. They provide various banking solutions to the clients and manage their money. They also work with the wealth management team to manage the wealth of the clients. A private banker can earn an average annual salary of 8.6 lakh rupees.
CFA Institutes in India:
The following are the top CFA institutes available in the country.
- International College of Financial Planning, [ICOFP] New Delhi
- Shri Chimanbhai Patel Institute of Professional Training, [CPIPT] Ahmedabad
- Shri Ram College of Commerce, Delhi
- HR College of Commerce and Economics, Mumbai
- Central India Institute of Management Studies, [CIIMS] Jabalpur
- Narayan Business School, Ahmedabad
CFA Course Frequently Asked Questions
- How can I enroll for CFA?
Those wishing to obtain the Chartered Financial Financial Analyst (CFA) certification must pass all 3 levels of the CFA Exam administered by the CFA Institute. Candidates who meet the eligibility requirements established by the institute are eligible to apply for level 1 of its examination.
In contrast, only candidates who pass the CFA level 1 exam are eligible to give the CFA level 2 exams, and only candidates who pass the CFA level 2 test are eligible to sit for the CFA level 3 examination.
- What is the structure of the Level I examination?
A total of 180 MCQs are included in the CFA Level I exam, which is split into 2 sessions of 135 minutes each.
- What is the format of the Level II examination?
Level 2 of a CFA exam consists of 88 multiple-choice questions based on a set of items. Candidates must complete all of the answers within two-time limits of 132 minutes each.
- Can you tell me about the framework of Level III?
A: The CFA level 3 exam consists of multiple-choice questions (MCQs) as well as constructed response questions. Twenty to thirty vignettes are used to support a vast variety of constructed-response or MCQ throughout the exam.
- How long does the CFA exam last?
The CFA exam lasts for three hours.
The exam duration for each of the three levels of the CFA exam is different from the other. The Level 1 exam will be split into 2 sessions of two hours and fifteen minutes each. 4.5 hours total, divided into two sessions, will be allotted to the management of the level 2 & level 3 exams, respectively.
- What is the format of the CFA examinations?
The CFA exam is administered using a pen and paper format. In the year 2021, the examination mode will be different. CFA exam papers are now administered through a computer-based format.
- When will the results of the CFA be announced?
The CFA Institute publishes the Level 1 & Level 2 results nearly 60 days after they are completed. Level 3 results, on the other hand, are typically available within 90 days.
- Is CFA more difficult than CA?
CA is widely regarded as the most difficult course, with a passing percentage of only 0.5 percent. When especially in comparison to the CA exam, the CFA exam is significantly easier.