Chartered Financial Analyst (CFA) : Full Form, Levels, Syllabus, Eligibility and Salary

What is CFA?

Chartered Financial Analyst is a professional designation offered by the CFA Institute for finance and investment professionals who are globally recognised. The CFA Charters are considered to be gold in the field of investment as they possess advanced knowledge of investment analysis and real-world portfolio management skills. To become a CFA professional, one shall complete all levels of the CFA exams. The CFA program covers a broad range of topics such as ethics, quantitative methods, economics, financial reporting and analysis, corporate finance, equity investments, fixed income, derivatives, alternative investments, and portfolio management. The program is divided into three levels and each level imparts in-depth knowledge of finance and investment. There are various highly respectable career options available to CFA Professionals, like Financial Analysts, Portfolio Managers, Investment Bankers, Research Analysts, Risk Analysts, Risk Managers, Investment Consultant, and other roles within the investment management industry.

How to Become a Chartered Financial Analyst?

To become a Chartered Financial Analyst (CFA), one must complete all three levels of the CFA Program offered by the CFA Institute. Here are the steps to become a CFA:

1. Meet the CFA Program Eligibility Criteria: In order To enroll in the CFA Program, one shall pass the eligibility test by having either of these:

• A Bachelor’s (or equivalent) degree or be in the final year of your bachelor’s degree program,
• At least 4 years of professional work experience,
• An educational degree along with full-time work experience of at least four years in total.

2. Enroll in the CFA Program: Eligible candidates are required to register for the CFA Program through the CFA Institute’s website after paying enrollment and registration fees.

3. Pass the Exams: To become a CFA professional, one shall pass all three levels of the exam subsequently.

4. Gain Relevant Work Experience: After passing all three levels of the CFA Program, four years of qualified work experience in investment and finance is needed. This experience should be related to the analysis and synthesis of financial information for investment decisions.

5. Become a Regular Member of the CFA Institute: Once all three levels of the CFA Program have been cleared and the required work experience has been acquired, one can become a regular member of the CFA Institute and can work in the capacity of the CFA Charter.

Why Pursue CFA?

Pursuing a Chartered Financial Analyst (CFA) offers several benefits in the world of finance and investment includes:

1. Career Opportunities: The CFA charter is a highly respected designation and is recognided globally. CFA offers various career opportunities and choices like Investment Banking, Portfolio Management, Research, Financial Analysts, Risk Analysts, Risk Managers, Investment Consultant, and other jobs in the field of finance.

2. Comprehensive Knowledge: The CFA program imparts a comprehensive and in-depth knowledge of various aspects of finance like investment analysis, portfolio management, ethics, and professional standards. This knowledge helps individuals to develop skills needed to make sound investment decisions and analyse complex financial markets.

3. Global Recognition: The CFA designation is globally recognised and ensures a high level of expertise, ethical standards, and professionalism in the finance and investment management fields.

4. Ethical Standards: The CFA program is very particular about the ethical standards and professionalism that makes the CFA Charter one of the most respectful and trustworthy designation.

5. Personal and Professional Growth: The CFA program provides various opportunities for individuals to enhance their analytical skills, critical thinking, and decision-making abilities. This can lead to both personal and professional growth. CFA programs also help individuals to become more effective and knowledgeable in financial aspects.

CFA Exam Levels, Syllabus and Format

The CFA Program consists of three levels each of which has its specific focus and curriculum, designed to build up in-depth knowledge of finance and analytical skills. The exam levels and their formats include:

I. CFA Level I

Level I of the CFA program focuses on building a foundation in basic concepts and tools used in investment valuation and portfolio management. It aims to cover 10 basic topics such as ethical and professional standards, quantitative methods, economics, financial reporting and analysis, corporate finance, equity investments, fixed income, derivatives, alternative investments, and portfolio management. Level I examines the candidate’s understanding of ethical standards and professionalism. The Level I exam is conducted twice a year in June and December. The exam is of multiple-choice format with 180 questions designed to judge the candidate’s knowledge application. The following table helps in understanding the subjects along with their weightage in the examination:

Subject Name	Total Weightage in the Exam (%)
Ethical and Professional Standards	15-20%
Quantitative Methods	6-9%
Economics	6-9%
Financial Statement Analysis	11-14%
Corporate Issuers	6-9%
Portfolio Management	8-12%
Equity Investments	11-14%
Fixed Income	11-14%
Derivatives	5-8%
Alternative Investments	7-10%

II. CFA Level II

Level II focuses on asset valuation and gets deeper into the application of the tools and concepts learned in Level I. It aims to provide analytical insights for the analysis of financial statements and techniques for valuing investments.The Level II exam is conducted thrice a year in May, August, and November. It consists of 22-item set questions, also known as “mini-cases,” designed to test how well a candidate applies the knowledge to real-world scenarios. It also consists of 88 multiple-choice questions.

Subject Name	Total Weightage in the Exam (%)
Ethical and Professional Standards	10-15%
Quantitative Methods	5-10%
Economics	5-10%
Financial Statement Analysis	15-20%
Corporate Finance	5-10%
Equity Investments	15-20%
Fixed Income	10-15%
Derivatives	5-10%
Alternative Investments	5-10%
Portfolio Management and Wealth Planning	10-15%

III. CFA Level III

Level III focuses on the concepts and analytical tools used in portfolio management and wealth planning. The entire curriculum of Level III emphasises portfolio building, strategies for wealth and portfolio management, application of tools and concepts, and Applying analytical skills for understanding complex financial markets. The Level III exam is conducted twice a year in February and August. It consists of item sets accompanied by multiple-choice questions and essay questions that test the candidate’s critical thinking skills in the context of portfolio management and wealth planning.

Subject Name	Total Weightage in the Exam (%)
Ethical and Professional Standards	10-15%
Quantitative Methods	NA
Economics	5-10%
Financial Statement Analysis	NA
Corporate Finance	NA
Equity Investments	10-15%
Fixed Income	15-20%
Derivatives	5-10%
Alternative Investments	5-10%
Portfolio Management and Wealth Planning	35-40%

Eligibility for CFA Exams

Candidates shall meet either of the following eligibility criteria before getting registered under the CFA program:

• One shall 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
• One shall have four years of qualified, professional work experience, or
• One shall have a combination of education and full-time work experience that totals at least four years.

Examination Fees for CFA Exams

1. Registration Fee: One-time registration fee of $450 at the time of enrollment for the CFA Program.

2. Examination Fees for Level 1: $700 to $1000

3. Examination Fees for Level 2: $700

4. Examination Fees for Level 3: $700

5. Rescheduling Fee: A Rescheduling Fee of $250 is applicable if the candidate wishes to reschedule his/her exam appointment within the exam window.

How to Enroll for CFA Exams?

The candidate can easily get registered with CFA Institute online by following basic steps:

1. Create an online user account using a valid email address.

2. Enroll in a CFA program.

3. Register for the level I exam and pay the applicable fee online.

Salary After Passing CFA Exams

1. On Completing Level I, the average salary of CFA shall be ₹5,00,000-₹8,00,000 per annum.

2. After passing Level II, the average salary of CFA shall be ₹10,00,000-₹15,00,000 per annum.

3. After completing Level III, the average salary of CFA shall be ₹15,00,000-₹35,00,000 per annum.