The CFA subjects form the core foundation of the Chartered Financial Analyst (CFA) program. These subjects help students gain financial knowledge, investment understanding, and real-world skills. If you’re planning to become a CFA charter holder, then you must learn about all the subjects and how they differ at each level.
So, what are CFA subjects? CFA subjects are 10 main topic areas designed by the CFA Institute. These subjects cover everything from ethical standards, economics, and financial reporting to portfolio management and wealth planning. These subjects stay the same across all three CFA levels. However, the difficulty and weight of each subject change as you move from Level 1 to Level 3.
CFA Exam Overview
The Chartered Financial Analyst (CFA) designation is one of the most prestigious and globally recognized qualifications in finance and investment. Administered by the CFA Institute (USA), this program is designed to equip professionals with a deep understanding of investment analysis, asset management, ethical standards, portfolio management, and financial decision-making.
The CFA exam has 3 levels. Each level tests your knowledge differently. The CFA subjects stay the same, but the focus and depth increase with every level.
CFA Level 1: Basic Understanding
Level 1 tests your basic concepts. You must learn formulas, definitions, and theory. Most questions are direct and based on memory and understanding.
CFA Level 2: Application-Based
Level 2 tests your application skills. You must solve case studies and item sets. Questions check how you apply concepts in real-world finance problems.
CFA Level 3: Portfolio Focused
Level 3 focuses on portfolio management. The exam includes essays and case-based MCQs. You must give recommendations and justify them.
CFA Subjects
There are 10 core subjects (topic areas) covered in the CFA curriculum across all levels. These include:
- Ethical and Professional Standards
- Quantitative Methods
- Economics
- Financial Statement Analysis
- Corporate Issuers (Corporate Finance)
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
- Portfolio Management and Wealth Planning
Each subject is designed to build the knowledge and skills necessary for investment analysis and decision-making in the real world.
Ethical and Professional Standards
Ethics holds a strong place in all three levels of the CFA exam. At Level 1, its weightage is highest, ranging between 15% to 20%, because this level focuses on introducing the CFA Institute’s Code of Ethics and the Standards of Professional Conduct. Students must learn how financial professionals should behave to maintain trust and integrity in global markets. At Level 2, the weight decreases slightly from 10% to 15%, but the questions are more complex. The exam tests your ability to apply ethical principles in various professional situations through mini-case studies. By the time you reach Level 3, the weight remains 10% to 15%, but the focus shifts toward ethical decision-making in real client scenarios. Here, ethics combine with portfolio management situations, testing your ability to balance professionalism with client interests. Since ethics is a tie-breaker in borderline cases, consistent focus on this subject can make or break your results across all levels.
Quantitative Methods
Quantitative Methods, or Quant, begins strongly in Level 1 with a weightage of 8% to 12%. This subject introduces you to the core mathematical tools used in finance, such as the time value of money, probability, correlation, regression analysis, and hypothesis testing. These concepts lay the foundation for valuation and analysis across other subjects. At Level 2, quantitative methods have a slightly lower weightage of 5% to 10%, yet the questions become more practical. You apply statistical tools to real-world data, such as forecasting returns or calculating risk factors in financial instruments. However, Level 3 does not include quantitative methods as a direct subject. Still, the skills you develop in Levels 1 and 2 will help you analyze investment strategies and understand portfolio construction. Quant helps you become comfortable with data-driven decision-making, a vital part of a CFA’s day-to-day work.
Economics
In Level 1, economics carries a weightage of 8% to 12% and focuses on teaching the basic concepts of micro and macroeconomics. You’ll study how supply and demand affect prices, how governments use fiscal and monetary policies, and how currencies work in the global market. These foundational topics are essential to understanding how economic environments impact financial decisions. At Level 2, the weight decreases from 5% to 10%, but the difficulty increases. You study exchange rate systems and interest rate parity and analyze economic growth models in a deeper, more technical way. In Level 3, economics retains a 5% to 10% weightage but becomes highly strategic. You will apply economic theories to investment strategies, especially in the context of asset allocation, currency risk, and international diversification. Economics helps you connect the dots between global events and portfolio decisions, which is vital for high-level roles like fund managers or investment advisors.
Financial Statement Analysis (FSA)
Financial Statement Analysis (FSA) is one of the most heavily weighted subjects in Level 1, with 13% to 17% of the exam dedicated to it. The curriculum covers income statements, balance sheets, and cash flow statements in detail. It teaches how to analyze a company’s financial health using ratios, working capital trends, and accounting principles under IFRS and US GAAP. In Level 2, FSA weightage drops slightly from 10% to 15%, but the content becomes more advanced. Topics include pension accounting, intercorporate investments, and translation of foreign currency statements. You will also explore advanced techniques like residual income valuation. This subject has not been tested in Level 3, but its importance remains. Understanding financial statements helps you evaluate companies accurately in both Equity and Fixed Income analysis. Strong FSA skills are essential for anyone aiming to work in equity research, financial modelling, or corporate banking.
Corporate Issuers
Corporate Issuers, earlier known as Corporate Finance, carry a weight of 8% to 12% in Level 1. Here, you learn how companies make financing and investment decisions. The curriculum teaches capital budgeting methods, dividend policies, the cost of capital, and the factors influencing capital structure. These topics are very practical and help you understand how corporate strategies affect shareholder value. In Level 2, the weight decreases from 5% to 10%, but the subject goes deeper into mergers, acquisitions, and governance issues. You must analyze decisions from a shareholder’s point of view. Level 3 does not include corporate issuers. Still, this knowledge becomes useful when evaluating securities or advising institutional clients. This subject is especially relevant for students aiming to work in corporate finance, consulting, or investment banking.
Equity Investments
Equity Investments is a crucial subject that appears in all three levels. In Level 1, it has a weight of 10% to 12% and introduces stock markets, valuation models, and industry analysis. You learn how investors value shares using techniques like dividend discount models and price multiples. At Level 2, the weight increases from 10% to 15%. This level dives deeper into valuation techniques, including free cash flow and residual income models. You also study factors like economic moats and competitive strategy. In Level 3, equity remains equally important, with a weightage of 10% to 15%. However, the focus shifts to using equity within a portfolio context. You apply earlier valuation skills to build strategies for clients based on risk tolerance and return objectives. Equity Investments is highly relevant for roles in asset management, equity research, and hedge funds.
Fixed Income
Fixed Income is introduced in Level 1 with a weight of 10% to 12%. You study bond pricing, yield measures, and the basics of interest rate risk. The curriculum also includes concepts like duration, convexity, and bond structures. In Level 2, the subject becomes more challenging, and its weight increases from 10% to 15%. You analyze credit risk, mortgage-backed securities, and complex pricing models. This level is very technical but crucial for those interested in debt markets. At Level 3, Fixed Income reaches its peak importance with 15% to 20% of the exam weight. You study portfolio immunization immunization, interest rate strategies, and how fixed-income securities are managed in client portfolios. This subject becomes central for professionals aiming for roles in treasury, bond funds, and institutional asset management.
Derivatives
Derivatives start in Level 1 with a weight of 5% to 8%. You learn the basic structure and use of derivatives like forwards, futures, swaps, and options. The curriculum covers pricing, payoff diagrams, and uses in hedging. In Level 2, the subject gets more technical, with a weight of 5% to 10%. You study pricing models like Black-Scholes and apply options in investment strategies. In Level 3, the weight remains 5% to 10%, but the focus becomes practical. You use derivatives for risk management in a portfolio, such as adjusting exposure to interest rates or equity risk. While it’s not the easiest subject, derivatives add valuable tools to your investment toolkit, especially in roles like risk analyst, quant, or derivative trader.
Alternative Investments
In Level 1, Alternative Investments carries a weight of 5% to 8% and introduces you to assets outside traditional stocks and bonds. This includes real estate, hedge funds, commodities, private equity, and infrastructure. These assets help diversify a portfolio and manage risk. In Level 2, the weight increases from 5% to 10%, where you explore valuation techniques and the unique risks of these assets. By Level 3, alternative investments continue to carry 5% to 10%, with a focus on how they fit into institutional and high-net-worth portfolios. Although the weight is lower compared to subjects like portfolio management, understanding alternatives is crucial in today’s diversified investment world.
Portfolio Management and Wealth Planning
In Level 1, portfolio management has a small weightage of 5% to 8%. Here, the CFA curriculum introduces the basic ideas of portfolio theory, diversification, and risk-return trade-offs. In Level 2, the weight increases from 5% to 10%, and you start building portfolios with specific objectives. You also learn asset allocation methods and investor profiling. In Level 3, portfolio management becomes the most important subject, with a massive 35% to 40% of the exam weight. You study portfolio construction, strategic and tactical asset allocation, investment policy statements (IPS), and behavioral finance. You must also write essay-type answers (constructed responses) justifying your investment decisions. This subject ties all other CFA subjects together and reflects the real-world responsibilities of portfolio managers and investment advisors.
CFA Subjects Weightage by Level
Understanding the weightage of CFA subjects is very important for students who are preparing for the CFA exams. Each of the ten subjects is tested in all three levels of the CFA program, but the focus and weight of these subjects change from one level to another. This means that while the subjects remain the same, the depth of the questions and the importance of each topic area shift depending on whether you’re studying for Level 1, Level 2, or Level 3. By knowing the exact weightage, you can prepare a better study plan and give more time to high-weight topics.
Here’s a table showing how the weightage of CFA subjects changes from Level 1 to Level 3:
| CFA Subject | Level 1 Weight (%) | Level 2 Weight (%) | Level 3 Weight (%) |
| Ethical and Professional Standards | 15–20% | 10–15% | 10–15% |
| Quantitative Methods | 8–12% | 5–10% | 0% |
| Economics | 8–12% | 5–10% | 5–10% |
| Financial Statement Analysis | 13–17% | 10–15% | 0% |
| Corporate Issuers | 8–12% | 5–10% | 0% |
| 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 & Wealth Planning | 5–8% | 5–10% | 35–40% |
CFA Subjects FAQs
1. How many CFA subjects are there?
There are 10 CFA subjects in total. These subjects appear in all three levels.
2. Do CFA subjects change with levels?
No, the subjects remain the same. But the depth and application level increase as you move up.
3. Which CFA subject is the toughest?
Many students find Financial Statement Analysis, Fixed Income, and Derivatives to be tough due to calculations and concepts.
4. Which CFA subject has the highest weight in Level 3?
Portfolio Management and Wealth Planning have the highest weight in CFA Level 3, with 35–40% of the exam.
5. Can I skip any CFA subjects?
No, you must study all 10 subjects. Each contributes to your total score.
