CFA® Course

To become a CFA®  Charterholder, you need to pass all 3 levels of the CFA exam. You can register for the level 1 exam if you meet the education and/or work experience requirements. The years of professional work also count when you pass the exams and want to use your CFA® designation. Aspirants willing to pursue CFA® must comply with the eligibility criteria.

The eligibility for the CFA® Level 1 program is as follows:

• Candidate must hold a Bachelor’s degree or equivalent in any discipline.
• A candidate who is in the final year of the Bachelor’s program at the time of registration can also apply for the CFA®  program.
• Applicants need to have at least four years of work experience.

To become a CFA® charter holder, you must have:

• all 3 levels of the exam were completed AND
• at least 4,000 hours of relevant investment-related work experience, completed in a minimum of 36 months (full-time and part-time jobs, as well as remote work arrangements – before, during, or after your participation in the CFA®  Program – qualify).

How much does a CFA® candidate earn in India?

• Ideally, if you are a CFA® Level 1 cleared candidate in India then you should be able to get approx Rs 6 Lacs.
• if you have cleared CFA® Level 2 then approx your package should be around Rs 8 to 9 lacs depending upon the profile.
• If you have cleared CFA® Level 3 then ideally in MNC banks you should be able to command around Rs 12 Lacs annually.

Job Profile for CFA® Candidates in India:

• Corporate Finance
• Investment Research
• Fixed Income Research
• Investment Advisor/Consultant
• Performance Analysis
• Portfolio Management
• Credit Analyst

Clearing CFA® along with a Full Time is very much possible, I have many students who have cleared the exam along with full-time jobs.

CFA® examinations are challenging and you will need to be extremely disciplined and focused to complete the charter. Candidates are required to pass three levels of exams covering areas, such as accounting, economics, ethics, money management, and security analysis.

Books to be used:

• Get the Schweser Notes and Question from the Book Seller.
• Get Texas Instrument Calculator [ BA II Plus]

Strategy for Preparation:

• It is very important to strike a balance between work life and studies. Try to study as much as 2-3 hours per day and try solving as many questions as possible.
• Focus on identifying difficult topics and revise them 2 to 3 times before the exam.
• Since you get very little time to study, it is better that you stick to third-party notes instead of CFA®  institute material as they are concise and cover all the topics.
• You can prepare a timetable and try to follow it. Question bank solving is a must as it makes you efficient and makes you aware of the exam environment.
• Last-minute recaps are very beneficial as it refreshes your concepts.
• Dedicate the last 4-5 weeks only for mock tests as it helps you in understanding your strong and weak areas
• If you are dedicated and focused, then you will be well prepared for your exams.

Ethical and Professional Standards –

This section tries to cover the professional standards and Ethical requirements of being an Investment Management professional. It also covers the Global Investment Performance Standards (GIPS).

If you are scoring low or you are close to the minimum marks required then the score of this section can decide if the candidate will pass or fail.

Quantitative Methods –

This section tries to cover the basics of statistics and probability for the exam with the section focusing on Statistics, Probability, Hypothesis, Probability Distribution, etc.

This section also covers the Time Value of Money which is the basis of calculations in corporate Finance & Fixed Income books

Economics –

This Section focuses on covering the topics related to Macro and Microeconomics in detail as it is the base for equity analysis and valuation.

Financial Reporting and Analysis –

This section is the largest and important section for the exam.

This section requires the candidate to understand Financial statements like Balance Sheet, Income Statement, and Cashflow in details along with the account implication for different account standards

Corporate Finance –

This Section focuses on the decision-making of Capital and Risk allocation while doing business. This section broadly covers the capital budgeting, working capital, leverage as a concept in Finance

Portfolio Management –

This section focuses on understanding the nuance of creating the portfolio and risk/return profile of the portfolio management.

This section also covers the Modern Portfolio and Capital Asset Pricing Model theory in detail.

Equity –

This section focus on the various methods for evaluation and valuation of Equity securities in the market.

Fixed Income –

This section focuses on various feature and valuation methods used for Fixed Income Securities like Corporate Bonds, Callable bonds, etc,

Derivatives –

This Section focus on the basics of Financial Derivatives like Futures, Forwards, Swaps, and Options which are available in the market.

Further, this section also tries to give an overview of the valuation of these derivatives

Alternative Investments –

This section gives an overview to the candidates on the various other non-traditional investments like Real Estate, Commodity hedge Funds, Private Equity, etc.

Overall the curriculum of CFA® Level 1 is trying to give the candidate a flavor of the different aspects of the financial market and business so that candidate can be decided his interest accordingly.