CFA Course Syllabus & Subjects 2023

CFA or Chartered Financial Analyst is one of the world's most reputed designations in investment management and finance. CFA professionals can make a career in corporate and financial services, banking, management, etc. They also have the opportunity to practise independently and make a business out of it.

The CFA course is divided into 3 levels; Chartered Financial Analyst Level 1, Chartered Financial Analyst Level 2, and Chartered Financial Analyst Level 3. The exams for all of these 3 levels of the CFA course can be cleared by self-study. The  CFA syllabus revolves around topics such as Economics, Accounting, Money Management, and Security Analysis.

The credential offered by the Chartered Financial Analyst Institute is globally recognized and is one of the most respected designations in the world. The CFA program has been designed to provide one with a strong foundation of advanced investment analysis along with real-world portfolio management skills. The programme is meant to enhance your career prospects in the investment analysis field.

Get the complete detail about CFA Course Syllabus and CFA Subjects level wise. Also, know the CFA entrance exam syllabus here.

The CFA program includes the foundational knowledge that firms expect as well as the critical advanced investment analysis and portfolio management skills that are needed in investment management today.

There are three levels of the CFA course. Each level has mostly the same topics and carries different weightage. The CFA syllabus involves core subjects such as investment industry, microeconomics, macroeconomics, financial settlements, equity and debt securities, performance analysis etc.

The Chartered Financial Analyst Institute may change or update the CFA syllabus depending on the requirements of the industry and suggestions of investment professionals. Students are notified regarding all changes and recent practice analysis methods in the Chartered Analyst syllabus in advance on the official website. 

Here is the detailed CFA syllabus. 

• Investment Industry: A Top-Down View
• Ethics & Regulation
• Investment Professionalism
• Microeconomics
• Macroeconomics
• Debt Securities
• Equity Securities
• Derivatives
• Alternative Investments
• Structure of the Investment Industry
• Investment Vehicles
• Functioning of Financial Markets
• Investors & Their Needs
• Investment Management
• Risk Management
• Performance Evaluation
• Investment Industry Documentation
• Economics of International Trade
• Financial Statements

Also Read: All About CFA Course

The CFA programme comprises three levels and each level of the CFA course includes a six-hour exam. Candidates have to pass these three extensive exams in order to get the CFA credentials. There is a specific weightage given to every subject at different levels of the CFA course. Following are the levels and subject weightage:

CFA Level 1: Basic aspects of investment analysis are covered at this level. The level comprises ten topics that will be covered using investment tools.

CFA Level 2: This phase comprises the application of investment tools and topics that are focused on the valuation of different types of assets.

CFA Level 3: In this level, emphasis is laid on synthesising all of the concepts and analytical methods in order to learn their applications for wealth planning and effective portfolio management.

The complete core topics of the CFA Syllabus are given below: 

• Ethical & Professional Standards: This subject helps gain an understanding of ethical behavior and the need for professionalism in the investment market.
• Economics: Economics deals with microeconomic concepts, market frameworks, and supply and demand analysis of individuals and firms.
• Quantitative Methods: It comprises probability theory, investment decision-making aspects, descriptive statistics etc.
• Financial Statement Analysis: The topic provides a complete insight into financial reports along with their procedures and standards.
• Equity Investments: This subject is related to the study of indexes, the security markets, and equity investment areas of the economy.
• Fixed Income: To learn about fixed income measurement techniques, its maintenance, factors risking it, fixed income securities etc., Fixed Income is an essential topic.
• Corporate Issuers: This subject comprises stakeholder management and corporate governance.
• Derivatives: The topic includes the basics of derivatives and the structure of the derivative market.
• Portfolio Management & Wealth Planning: One subject that deals with a complete understanding of wealth planning and portfolio management.
• Alternative Investments: Alternative Investments comprise a conceptual understanding of private equity, hedge funds, real estate, infrastructure etc.

Also Read: Career as a Chartered Financial Analyst

The CFA syllabus comprises 10 topics, which are further split into their corresponding sub-topics. The curriculum of CFA is vast and differs at each level of study or examination. In the following sections, we have provided the in-detail CFA syllabus for all CFA levels. It is necessary for students to be aware of different CFA syllabi beforehand to study well.

CFA Syllabus for Level 1

CFA syllabus topics remain the same across all levels and only the weightage of each topic changes through the levels. CFA Syllabus for Level 1 with weightage is as follows:

• Ethical & Professional Standards: 15-20 questions
• Quantitative Methods: 8-12 questions
• Economics: 8-12 questions
• Financial Statement Analysis: 13-17 questions
• Corporate Issuers: 8-12 questions
• Equity Investments: 10-12 questions
• Fixed Income: 10-12 questions
• Derivatives: 5-8 questions
• Alternative Investments: 5-8 questions
• Portfolio Management & Wealth Planning: 5-8 questions

CFA Syllabus for Level 2

CFA Syllabus for Level 2 along with the weightage is given below:

• Ethical & Professional Standards: 10-15 questions
• Quantitative Methods: 5-10 questions
• Economics: 5-10 questions
• Financial Statement Analysis: 10-15 questions
• Corporate Issuers: 5-10 questions
• Equity Investments: 10-15 questions
• Fixed Income: 10-15 questions
• Derivatives: 5-10 questions
• Alternative Investments: 5-10 questions
• Portfolio Management & Wealth Planning: 10-15 questions

CFA Syllabus for Level 3

The CFA Syllabus for Level 3 and topic-wise weightage are explained here:

• Ethical & Professional Standards: 10-15 questions
• Quantitative Methods: N/A
• Economics: 5-10 questions
• Financial Statement Analysis: N/A 
• Corporate Issuers: N/A 
• Equity Investments: 10-15 questions
• Fixed Income: 15-20 questions
• Derivatives: 5-10 questions
• Alternative Investments: 5-10 questions
• Portfolio Management & Wealth Planning: 35-40 questions

The CFA books required for the CFA course/ degree and also for the preparation of CFA entrance exams are given below. Candidates should make sure to always study from the latest editions of these books.

• The Big Short by Michael Lewis
• Investment Banking by Pearl & Rosenbaum
• Den of Thieves by James B Stewart
• Fooling Some of the People all of the Time by David Einhorn
• The Margin of Safety by Seth Klarman
• When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein
• Alpha Masters: Unlocking the Genius of the World’s Top Hedge Funds by Maneet Ahuja
• Dark Pools by Scott Patterson
• More Money Than Gold by Sebastian Mallaby
• Trend Following by Michael Covel
• Market Wizards by Jack Schwager
• Thinking, Fast and Slow by Daniel Kahneman
• Conspiracy of Fools by Kurt Eichenwald
• The Alchemy of Finance by  George Soros
• All the Devils are Here by Bethany McLean, ?Joe Nocera
• The Dhandho Investor by Mohnish Pabrai
• The Five Rules for Successful Investing by Pat Dorsey
• The Little Book that Builds Wealth by Pat Dorsey
• CFA Admission 2022
• The Conspiracy Paper by David Liss

CFA is a globally recognised qualification offered by the CFA Institute based out of the USA. Thus, its exam pattern is quite different from the examinations offered by the Indian board. The syllabus covers the entire world of investment management – from equity derivatives to portfolio management.

From 2021, the CFA exams are being conducted four times a year for Level 1 and Level 2, whereas Level 3 exams will be held quarterly. The weightage in each level varies. The passing percentage across all levels is somewhere between 40-50%.

CFA Level 1

• The CFA Level 1 exam is conducted in a computer-based format.
• CFA Level 1 consists of 2 exams of 3 hours each on the same day, with a 2-hour break covering all 10 topics
• It has a total of 240 MCQs (120 per exam) with subject-wise bifurcation. 
• There is no negative marking in CFA Level 1. 
• The CFA Level 1 exam is held across India during June & December every year.

CFA Level 2

• CFA Level 2 evaluates an applicant’s capacity in the applicability of investment valuation concepts. 
• The exam is categorised into 4 groups that have around 10 topics. The groups are Ethical & Professional Standards, Investment Tools, Portfolio Management & Wealth Planning.
• CFA Level 2 consists of two 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. It can include tables and diagrams.

CFA Level 3

• The final level is CFA Level 3, passing which the candidate is certified as a Chartered Financial Analyst. 
• This exam deals with portfolio management and wealth planning concepts.
• CFA Level 3 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.
• There is also an essay question that has 2+ parts.
• The length of a case study is from 1 to 2 and a half pages. It can include tables and diagrams.