The CFA exam is a tough test for those interested in finance and investment. It is recognized around the world as a standard of excellence. To earn the CFA, students must pass three levels of exams. Each level challenges candidates to apply their knowledge and skills in finance, investment analysis, and portfolio management. The exams also focus on important ethics and rules in the financial world. Passing all three levels is a great achievement. It shows a deep understanding of finance and investment. The CFA certification can help improve career chances. It also boosts your reputation in the financial industry. Many employers value this certification because it shows expertise and commitment.
What is CFA?
A Chartered Financial Analyst (CFA) program is a highly esteemed credentialing course designed to educate professionals in finance and investments. Three levels of exams would be undergone by the professional who would train him in all different fields of financial analysis, portfolio management, and ethical standards. The candidates have a bachelor’s degree or equivalent work experience to undertake this course. The coursework includes equity analysis, fixed income, derivatives, as well as alternative investments. The CFA program is rigorous, requiring approximately 300 hours of study in preparation for each level. Apart from clearing each of the three levels, candidates are expected to meet the total work experience requirements before becoming eligible for receiving the CFA passport to further their credibility and career.
CFA Course Details & Structure
The CFA program consists of three levels of exams that assess the knowledge and skills of aspiring candidates in various areas of finance. It goes step by step, starting with one level and then the other, making sure deep knowledge is obtained about intricate concepts in finance in the person. Level 1 focuses on basic knowledge, Level 2 dives into analysis, and Level 3 covers portfolio management and ethics. Students must pass all levels to earn the CFA. Below is the table to help you understand the structure and details of CFA:
| Items | CFA Course Details |
|---|---|
| Corporate Banking, Equity, Risk Management, Research, etc. | Chartered Financial Analyst |
| CFA Conducting Body | CFA Institute |
| CFA Eligibility in India | Ethical and Professional Standards, Economics, Quantitative Methods, Investments, etc. |
| CFA Course Duration | Takes about 2-3 years to complete. |
| CFA Course Fees | Between INR 11,000 to INR 3.5 Lakh |
| CFA Colleges in India | Financial Planning Academy, IMS ProSchool, Narayana Business School, ICOFP Delhi, etc. |
| CFA Levels of Exam | CFA Level 1, CFA Level 2, and CFA Level 3. |
| CFA Subjects | Ethical and Professional Standards, Economics, Quantitative Methods, Investments etc. |
| CFA Job Profiles | Deloitte, ICICI, SBI, HDFC, Bharti Airtel, etc. |
| CFA Starting Salary | INR 4 LPA |
| CFA Job Sectors | Corporate Banking, Equity, Risk Management, Research etc. |
| CFA Top Recruiters | Deloitte, ICICI, SBI, HDFC, Bharti Airtel etc. |
CFA Levels
The curriculum has numerous topics that include ethics, quantitative methods, economics, financial reporting, and analysis. Each topic ensures to have a sound basis both theoretically and practically with finance.
CFA Level I Exam
The Level I exam consists of 180 multiple-choice questions, split between two 135-minute sessions (session times are approximate). There is an optional break between sessions.
- First session (2 hours, 15 minutes): 90 multiple-choice questions
- Second session (2 hours, 15 minutes): 90 multiple-choice question
CFA Level II Exam
The CFA Level II exam consists of 22 item sets comprised of vignettes with 88 accompanying multiple-choice questions. This level will be 4 hours and 24 minutes, split into two equal sessions of 2 hours and 12 minutes, with an optional break in between.
CFA Level III Exam
The Level III exam consists of item sets and constructed response (essay) sets. Both question types combine vignettes with accompanying multiple-choice items for item sets and constructed response items for essay sets. Each session will have either 6 item sets and 5 essay sets or 5 item sets and 6 essay sets. This mixed distribution of item types across the two exam sessions creates a more balanced delivery of questions throughout the exam. Overall, the Level III exam contains 11 item sets and 11 essay sets for 12 points each.
CFA Eligibility Criteria and Registration Process
If you want to earn the CFA charter, you need to pass all three phases of the exams. The first exam, Level 1, requires you to meet certain eligibility and verification requirements. This means you must show that you meet the criteria before you can take the exam. For Level 2 and Level 3, the only requirement is that you have passed the previous level. You do not need to meet any new eligibility conditions. To start the process, you must first check if you meet the CFA eligibility rules. Then, you will complete the verification steps. After that, you can register for the exams. Understand the eligibility criteria for the CFA exam below.
CFA Level 1 Requirements
Before you can sit for the first level of the CFA exam, you need to satisfy some eligibility criteria and requirements mandated by the CFA Institute (CFAI).
- Bachelor’s Degree: You must have completed a Bachelor’s or equivalent program and hold a college/university degree. Consult your college or university if you are unsure if your program is comparable.
- Undergrads: Students with two years remaining in their undergraduate studies will be able to sit for the Level 1 exam; as part of CFAI’s expanded eligibility. Please note that it is essential to finish your degree program before taking your CFA Level II exam.
- Professional Work Experience: You must have about 4,000 hours of work experience or higher education acquired over three years before registering for the Level I exam. Make sure that your education and work experience timelines do not overlap.
CFA Level 2 Eligibility
You must have passed the Level I exam and completed your bachelor’s degree to take the Level II exam. You will have 20 vignettes, each of which will be followed by six questions. Like the Level 1 exam, Level 2 is divided into two equal sessions, one in the morning and one in the afternoon.
CFA Level 3 Eligibility
The Level 3 exam comprises 8-11 constructed response questions and ten vignettes divided into morning and afternoon sessions. To attempt the CFA Level 3 exam, you must have passed Level II.
CFA Registration Process
The CFA program has three levels, with Level 1 being the starting point. The CFA Institute offers an early registration window for all levels of the CFA exam. To register for the CFA exam, you can follow these steps:
Step 1: Meet eligibility criteria: You must meet the following criteria to register for the CFA exam:
- Have a bachelor’s degree or equivalent qualification
- Have a valid international passport
- Be proficient in English
- Have 4,000 hours of professional work experience if you don’t have a degree
Step 2: Register with CFAI: Register with the CFA Institute
Step 3: Schedule your exam: Schedule your exam with Prometric.
Step 4: Sign professional conduct statement: Sign the Professional Conduct Statement, which is part of the online membership application process
Step 5: Apply for membership: Apply to a CFA Society when applying for a CFA Institute membership.
Exams for Levels I and II are administered yearly, while Level III is administered twice a year. Thus, candidates need to register for each level separately.
CFA Salary and Career Opportunities
The CFA Course is very popular because it is hard to complete. It takes a lot of hard work and dedication. As a result, people who finish the course often do better than their colleagues. They have a special skill set that makes them stand out. Many companies value the CFA certificate. Graduates of this course can get jobs in different fields.
Top Job Roles for CFA Professionals
Some of the jobs include investment banker, financial advisor, portfolio manager, and risk manager. These jobs are important and offer good pay. The CFA certificate can open doors to many career opportunities. Below are a few job opportunities with an estimated salary after CFA certification.
| Job Profile | Average Salary |
|---|---|
| Investment Banking Analyst | INR 7 – 12 LPA |
| Equity Research Analyst | INR 6 – 10 LPA |
| Portfolio Manager | INR 8 – 15 LPA |
| Wealth Management Advisor | INR 7 – 12 LPA |
| Risk Management Analyst | INR 6 – 10 LPA |
| Credit Analyst | INR 5 – 8 LPA |
| Investment Product Analyst | INR 5 – 8 LPA |
| Financial Analyst | INR 5 – 7 LPA |
CFA Course Duration
The CFA program is elastic, and it states at what speed candidates might progress through the program. Typically, it has three levels of an examination, and most candidates take approximately four years to complete all the levels. Every level would require sufficient preparation time, typically amounting to 300 to 400 hours of study. While some complete the program in 18 months, for most candidates it’s going to take so much more time. It will also depend on whether a candidate is studying or studying and working at the same time. Moreover, the CFA Institute tells candidates to also factor in time taken up by relevant work experience, without which the charter can never be attained. So, all in all, it’s tough but quite worthwhile since it prepares the students for a successful career in finance.
CFA Fees Breakdown: Registration, Exam, and Other Costs
The CFA course fees may vary with differences in various criteria. There is the level of the exam to consider and the timing of registration-early, standard, or late registration. Through recent guidelines, candidates are going to be charged an enrollment fee, which is a one-time charge. The examination registration fees, though, depend on whether one registers early, standard, or late. Each level of the test will also incur additional expenses in materials and courses for preparation, which can contribute further to the total fee. Of course, on average, candidates might need Rs. 1,10,000 to Rs. 4,25,000 in total expenses to finish the whole program, all in fees and study accessories. Prospective candidates should budget for these costs and estimate any extra fees paid for additional study help and tools.
| Fee type | 2024 (INR) | 2025 (INR) |
| One-time Enrollment Fee(paid once only during the first Level 1 registration) | Rs. 30,000 (approx) | Rs. 30,000 (approx) |
| Registration Fee(Level-wise) | ||
| CFA Level 1 or 2 | ||
| Early Registration | Rs. 80,000 (approx) | Rs. 84,000 (approx) |
| Standard Registration | Rs. 1,05,000 (approx) | Rs. 1,10,000 (approx) |
| CFA Level 3 only | ||
| Early Registration | Rs. 80,000 (approx) | Rs. 92,000 (approx) |
| Standard Registration | Rs. 1,05,000 (approx) | Rs. 1,18,000 (approx) |
CFA Exam Pattern and Syllabus Overview
The Chartered Financial Analyst program is an international professional credential conceived with specific goals for finance and investment professionals to maintain a scope of interest strictly centered on the fields of investment management and financial analysis. It follows a CFA syllabus including everything from ethical standards, quantitative methods, economics, and portfolio management, all in support of equipping candidates with the knowledge and skills required for effective careers in finance.
Weightage Distribution Across Subjects
The details on the subjects and the weightage given to each subject as per the level of the exam have been stated below.
| CFA Subjects | Weightage Given in CFA Level 1 | Weightage Given in CFA Level 2 | Weightage Given in CFA Level 3 |
|---|---|---|---|
| Ethical and Professional Standards | 15-20 | 10-15 | 10-15 |
| Quantitative Methods | 8-12 | 5-10 | N/A |
| Economics | 8-12 | 5-10 | 5-10 |
| Financial Statement Analysis | 13-17 | 10-15 | N/A |
| Corporate Issuers | 8-12 | 5-10 | N/A |
| Equity Investments | 10-12 | 10-15 | 10-15 |
| Fixed Income | 10-12 | 10-15 | 15-20 |
| Derivatives | 5-8 | 5-10 | 5-10 |
| Alternative Investments | 5-8 | 5-10 | 5-10 |
| Portfolio Management and Wealth Planning | 5-8 | 10-15 | 35-40 |
CFA Exam Pattern
Once you are aware of the CFA syllabus, make sure you have an idea of the exam pattern including no. of questions, negative markings, etc of levels of the exam for better preparation.
- CFA Level I
- Consists of 2 exams of 3 hours each on the same day, with a 2-hour break covering all 10 topics.
- Total of 240 MCQs (120 per exam) with subject wise bifurcations.
- No Negative Marking.
- CFA Level II
- Consists of 3-hour sessions consisting of 21 case studies with 10 and 11 item-set questions in each respective session.
- There will be 120 questions – 18 case studies x 6 questions, and 3 case studies x 4 questions
- The length of a case study is from 1 to 2 and a half pages.
- CFA Level III
- Consists of two 3-hour sessions. The first session can contain anywhere from 8-12 essay questions (with sub-parts) and the second session can contain 11 case studies where 8 case studies x 6 questions, and 3 case studies x 4 questions.
- An essay question has 2+ parts.
- The length of a case study is from 1 to 2 and a half pages.
CFA Course in India
Chartered Financial Analyst is the most coveted course by an emerging finance professional, which advances learning in the practices of investment management and financial analysis in India. Such a course is administered by the globally recognized CFA Institute and is offered through three levels of exams that include ethics, financial reporting, equity and fixed income analysis, and portfolio management, among others. The CFA curriculum can give candidates the training equipped with the tools necessary to help them find success in complex financial markets, incorporating a strong underpinning of real-world application and high ethical standards.
The overall implication of doing the CFA in India is an additional investment in a candidate’s career by imparting a deeper understanding of finance and investment principles and acquainting him or her with a global network of professionals working in finance. Thus furthering networking and career development opportunities.
Why Choose CFA? Benefits and Global Recognition
The CFA (Chartered Financial Analyst) program is one of the most respected qualifications in the finance world. It helps professionals gain knowledge and skills in investment management, financial analysis, and ethical practices.
- Global Recognition: CFA is recognized worldwide. It is valued by employers in different countries.
- Career Growth: It opens doors to better job opportunities and higher salaries.
- Knowledge and Skills: CFA gives in-depth knowledge about finance and investment. It prepares you for real-world financial challenges.
- Networking: Joining the Financial Analyst community connects you with professionals across the globe.
CFA in Different Regions
| Region | Value of CFA | Benefits |
|---|---|---|
| United States | Very high | Many financial firms value CFA for hiring. It is a common requirement in roles like investment analyst or portfolio manager. |
| United Kingdom | Highly respected | Employers in the UK recognize CFA as proof of expertise in finance. It helps professionals move up in their careers. |
| India | Growing popularity | While relatively new, the CFA qualification is gaining importance. It is recognized by top finance companies. |
Why is CFA Valuable?
- International Recognition: Whether in the US, UK, or India, CFA is seen as a gold standard for finance professionals.
- Industry Relevance: It teaches practical skills needed for finance jobs.
- Job Opportunities: CFA charter holders are often preferred by top companies and financial institutions.
Passing the CFA exam successfully acts as a badge of honor, opening doors to several career avenues in finance and investing. This makes it possible for those who have reached this level to be concentrated and competent in financial analysis. The program develops technical expertise while inculcating in the practitioner an environment of sound ethics, without which any financial market loses trust. Graduates from CFA will then be found in leadership positions directing investment decisions and strategies. Lastly, a holder of the charter has earned him professional excellence in a dynamic field.
FAQs on CFA Certification
What is CFA, and who should pursue it?
CFA stands for Chartered Financial Analyst. It is a certification for people who want to work in finance, especially in investment and financial analysis. People interested in finance and money management should pursue it.
What are the eligibility criteria for CFA?
To apply for CFA, you must have a bachelor’s degree or be in the final year of your degree. You also need to have work experience in finance or a related field for some time. If you meet these, you can start the CFA program.
How much does CFA cost, including registration and exam fees?
The CFA program costs around ₹1,00,000 to ₹4,25,000 for the entire course, including registration and exam fees. There may be extra costs for study materials and other resources.
What is the average salary of a CFA professional in India?
In India, the average salary for a CFA professional is around ₹7,00,000 to ₹12,00,000 per year. It can be higher with more experience and in top companies.
How CFA Certification enhances your professional value?
CFA certification boosts your skills and shows employers you are a finance expert. It increases your chances of getting better job offers and higher salaries.
