CFA: Full Form, Level 1 & 2 Course Details, Admission, Syllabus, Exam, Eligibility, Careers

Chartered Financial Analyst (CFA) Overview

Chartered Financial Analyst (CFA) is a professional course that can be pursued after completing 10+2 or graduation from recognised institutes. To pursue the Chartered Financial Analyst course after class 12, one has to undergo the 3 levels of examinations starting with the CFA Foundation Level 1 followed by CFA Level 2 and the final level is the CFA Level 3 exams.

The Chartered Financial Analyst course is offered by the Institute of Chartered Financial Analysts of India. CFA is one of the most reputed designations in investment and management across the world. CFA professionals can expand their careers in the corporate as well as financial fields.

To pursue the Chartered Financial Analyst course, one has to undergo the 3 stage process of examinations. After completing the CFA levels, candidates are offered lucrative job opportunities and reputed profiles like Risk Manager, Private Banker, Investment Manager, Chief Financial Officer, Chartered Financial Analyst, Business Consultant etc. The Chartered Financial Analyst course fee ranges between INR 3 lakhs to 12 lakhs per annum.

Some of the top colleges offering Chartered Financial Analyst (CFA) course includes International College of Financial Planning Lucknow & New Delhi, Narayana Business School, Ahmedabad, G.D. Goenka Gurugram, Global Center for Entrepreneurship & Commerce, Jaipur, Central India Institute of Management Studies, Jabalpur etc.

Chartered Financial Analyst Quick Facts

Given below are some of the important facts of the Chartered Financial Analyst course:

• CFA stands for Chartered Financial Analyst. It is a professional degree offered by the Chartered Financial Analyst Institute, USA.
• The duration of the Chartered Financial Analyst Course varies between 1.5 years to 4 years. To seek admission to the CFA course, candidates must have completed an undergraduate degree in a related stream.
• Candidates in the final year of graduation can also seek admission to Chartered Financial Analyst Level 1.
• The course has no entrance examination. Candidates need to register themselves and seek admission.
• The candidates must clear all the levels of the Chartered Financial Analyst course to get certified. The 3 levels are Chartered Financial Analyst Level 1, Chartered Financial Analyst Level 2, and Chartered Financial Analyst Level 3.
• Chartered Financial Analyst course fee ranges between INR 1,00,000 - 5,00,000.
• After completing the course, candidates can get a wide scope of opportunities to work as a Chartered Financial Analyst, Investment Manager, Portfolio Manager, Business Consultant, Risks Manager, Supply Chain Analyst etc.
• After completing the Chartered Financial Analyst course, candidates get placed in top financial firms like HSBC, JP Morgan, EY, PBC, PwC etc as Chartered Financial Analysts.
• Chartered Financial Analyst professionals get an average salary of INR 6,50,000 - INR 41,00,000 depending upon their skills.

Chartered Financial Analyst Highlights

The detailed highlights of Chartered Financial Analyst (CFA) course are tabulated below:

Why Choose Chartered Financial Analyst Course?

Chartered Financial Analyst course is one of the most well-known commerce courses. The Chartered Financial Analyst professionals are in huge demand throughout India and abroad and can get lucrative opportunities to work. Chartered Financial Analyst professionals are given almost similar pay and respect as a CA or a CS. The Chartered Financial Analyst course fees is also so high and the Chartered Financial Analyst salary is good.

Given below are some of the benefits of pursuing a Chartered Financial Analyst course:

• Global Certification: This certification is regarded as the golden standard of professional credential for investment professionals around the world. This certification is accepted in more than 160 countries across the globe.
• Wide Opportunities: There is a boom of job opportunities in the financial market as well as the investment banking sector for Chartered Financial Analyst professionals. These industries are expected to grow in the coming years and thus job scope for Chartered Financial Analyst professionals will also increase.
• Scope of Advancing Career: After pursuing the Chartered Financial Analyst course, the Chartered Financial Analyst graduates are offered high positions in financial businesses. Chartered Financial Analyst professionals are hired in top leading world companies such as HSBC, Wells Fargo, Morgan Stanley, Bank of America, RBC, UBS, and JP Morgan Chase. Thus, the scope of career investment is high in this field. Chartered Financial Analyst professionals live a secure life in the future. 
• Decent Remuneration: After completing the Chartered Financial Analyst course, these Chartered Financial Analyst graduates can earn anywhere between Rs. 3,50,000 to 35,00,000 LPA depending upon their skills. According to the Chartered Financial Analyst Institute, CFA graduates earn around Rs. 95,00,000 LPA in the international market. 
• Exclusive Alumni Status: With a robust career, Chartered Financial Analyst course also gives the chance of becoming top alumni engaged in top companies. The popularity of the Chartered Financial Analyst course is so much that every year the number of Chartered Financial Analysts on the list is increasing by 5-7%. 
• Development of Financial Skills: The course helps graduates with developing skills required in financial markets. Chartered Financial Analyst curriculum comprises subjects such as wealth planning, derivatives, portfolio management, corporate finance, alternative investments etc. All of these help an individual develop a better grasp of the financial sector, its markets and services.
• Option of Entrepreneurship: Individuals after completing the Chartered Financial Analyst course also have an option of using their Chartered Financial Analyst certification and the acquired skill set to practice independently as a Chartered Financial Analyst and begin their own Chartered Financial Analyst consultancy firms. Investment management is the best entrepreneurial option for Chartered Financial Analysts as around 71% of Indians prefer to take financial advice from a qualified professional.

Who should study Chartered Financial Analyst Course?

Do you wish to know who should study Chartered Financial Analyst course? Given below are some important points that will help you decide.

• Individuals interested in making a career in the financial services or investment sector should definitely opt for the Chartered Financial Analyst course. 
• Individuals with prior work experience in banking and financial fields can take up the course to upskill themselves.
• Individuals who want lucrative careers by joining top companies or the ones who want to practice independently can choose this course. 
• Individuals who have an interest in job roles such as Financial Advisors, Portfolio Managers, Risk Managers etc should take up the Chartered Financial Analyst course.

When to study Chartered Financial Analyst Course?

Chartered Financial Analyst course requires a huge amount of hard work and dedication to complete. Aspirants must be aware of certain points before starting the Chartered Financial Analyst course. These points are given below: 

• Individuals must have a minimum of four years of work experience before starting a Chartered Financial Analyst course. If the acquired work experience is as a Chartered Financial Analyst then it is more beneficial.
• Individuals must gather financial means to carry on with the course as the Chartered Financial Analyst course is expensive with fees ranging between Rs. 3,00,000 - 6,00,000 LPA.
• Chartered Financial Analyst courses are difficult, thus the working individual should be able to devote dedicated hours for self studying and further clearing the course. 

Chartered Financial Analyst Required Skill Set

The Chartered Financial Analyst exam is quite competitive and challenging, and the entire journey of the CFA exam demands knowledge of the subjects along with the candidates' diligence, endurance and willpower. 

Chartered Financial Analyst is considered a holistic profession; thus, only passing all the levels of Chartered Financial Analyst exams is not enough. Clearing exams will definitely grant certification but one needs to acquire the skill set of a Chartered Financial Analyst as well. So, in order to be a Chartered Financial Analyst, the professionals need to have the following skill-set:

• Time Management Skills
• Diligence 
• Foundational Investment Skills
• Discipline
• Integrity
• Analytical Skills
• Decision Making Skills
• Attention to Details
• Self-Motivation Skills
• Leadership

Relevance of Chartered Financial Analyst in India

India is considered to be the accounting hub of the world. A lot of the financial MNCs have their working operations in India. Thus the significance of a finance degree in a country like India comes in huge demand, especially in contemporary times, when the IMF has projected its growth rate at 10%. A few examples are shared below:

Indian KPO’s Research: A lot of international firms are planning on reducing labour costs for which they are ready to make moves to India in search of cheap labour. Thus, a Chartered Financial Analyst degree holder will get great jobs in the future.  

Indian Brokers: The stock brokers in India are expanding their operations beyond the nation. A Chartered Financial Analyst degree is mandated for operations like these. The Chartered Financial Analyst course helps the candidates in gaining insight into different facets of the primary and secondary markets and also their structures, features, functions etc.

Wealth Management Firms: This industry is growing at 20% every year. Thus, the demand for Chartered Financial Analyst professionals has also increased as the majority of high-net worth individuals (HNI’s) are coming from India. The wealth management firms in India demand Chartered Financial Analyst graduates to offer services of planning, managing the investment and even for financial planning of the individual investors or the investment firms.

Chartered Financial Analyst Eligibility Criteria

The following are the eligibility norms to pursue the Chartered Financial Analyst course. 

• The candidates must have completed their bachelor’s degree or equivalent degree in Commerce stream from a recognised university.
• The candidates who are in the final year of their bachelor’s degree can also register. However, they must pass their graduation course prior to the date of registering for the Chartered Financial Analyst Level 2 examination.
• Candidates must also have a minimum work experience of 4000 hours or an amalgamation of a total of 4000 hours of work experience or higher education obtained over a minimum period of 3 consecutive years before registering for the Chartered Financial Analyst Level 1 examination.
• Further, the work experience of candidates pursuing an internship or articleship or practising independently in their own businesses will also be considered as work experience, if it is a paid one. It is not essential to work in the field of investment market but candidates can be from any field. 
• The candidates must also have key skills such as business communications, critical thinking, leadership, problem solving, teamwork, time management, analytical skills, adaptability and professional judgement. 
• An essential Chartered Financial Analyst norm is that the candidates must also have an international passport.
• Moreover, one must also be fluent in the English language to opt for the course of Chartered Financial Analyst.
• Individuals are also required to put forward a professional and valid compliance statement.

Chartered Financial Analyst Admission Process

Know the Chartered Financial Analyst admission process by going through the points given below:

• The Chartered Financial Analyst exam does not require any entrance exam for the admission process.
• To pursue the Chartered Financial Analyst course, individuals must take admission to the Chartered Financial Analyst  Institute. 
• The admission to this course is based upon a merit list prepared on the basis of marks obtained in a graduation degree. The institute also takes prior work experience into consideration while preparing the merit list.
• The candidates need to register and create their official accounts on the Chartered Financial Analyst website before enrolling for the Chartered Financial Analyst examination.
• The individuals can also opt for scholarships at the time of registration for the Chartered Financial Analyst course.
• The aspirants can choose the different exam cycles and slots according to their own preferences for the different levels of the Chartered Financial Analyst exam.
• Aspirants will only be able to register for the next CFA Level after they pass the previous Chartered Financial Analyst Level.

Chartered Financial Analyst Course Fees

The Chartered Financial Analyst Course Fees vary according to the colleges and depend upon various factors such as reputation, competitiveness, location, placements, faculty, pedagogy, and infrastructure. The average Chartered Financial Analyst Course Fees range from INR 1,00,000 to 3,00,000 in India. The Chartered Financial Analyst Course Fees are quite affordable.

Chartered Financial Analyst Syllabus

The Chartered Financial Analyst Syllabus is divided into 3 levels; Chartered Financial Analyst Level 1, Chartered Financial Analyst Level 2 and Chartered Financial Analyst Level 3. Individuals will only be able to move to the next level after clearing the previous level of the Chartered Financial Analyst examination.

The Chartered Financial Analyst Syllabus deals with subjects like investment decision making, investment depth, financial accounting, stock market and derivatives.

Chartered Financial Analyst Subjects

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

Chartered Financial Analyst Course Level 1: Basic aspects of the investment analysis are covered at this level. The level comprises a total of ten topics that will be covered using investment tools.

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

Chartered Financial Analyst Course Level 3: In this level, an 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.

Chartered Financial Analyst Syllabus: Core Topics

The complete core topics of the Chartered Financial Analyst Syllabus are given below: 

• Ethical and Professional Standards: Gain an understanding of the ethical behaviour and 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: Comprises probability theory, investment decision making aspects, descriptive statistics etc.
• Financial Statement Analysis: Provides a complete insight into the financial reports along with their procedures and standards.
• Equity Investments: Related to the study of indexes, security market, and equity investment areas of the economy.
• Fixed Income: Learning about fixed income measurement techniques, its maintenance, factors risking it, fixed income securities etc.
• Corporate Issuers: Comprise of stakeholder management and corporate governance.
• Derivatives: Includes basics of derivatives and the structure of the derivative market.
• Portfolio Management and Wealth Planning: Deals with a complete understanding of wealth planning and portfolio management.
• Alternative Investments: Comprises conceptual understanding of private equity, hedge funds, real estate, infrastructure etc.

Chartered Financial Analyst Syllabus: Level-Wise Weightage

The complete level-wise weightage of the entire Chartered Financial Analyst Syllabus across all levels is tabulated below: 

Note: Chartered Financial Analyst Institute may change or update the Chartered Financial Analyst 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.

Chartered Financial Analyst Examination

The Chartered Financial Analyst exam is conducted across all the 3 levels in the entire year. The weightage in each level varies. The passing percentage across all levels is not much and is somewhere between 40 and 50%.

Chartered Financial Analyst Exam Pattern

The detailed exam pattern of CFA is tabulated below:

Chartered Financial Analyst Level 1

• The Chartered Financial Analyst exam is conducted in a computer based format.
• The Chartered Financial Analyst exam is held across India during February, March, May, June, July, August and November months.

Chartered Financial Analyst Level 1: Registration Process

The complete registration process for the Chartered Financial Analyst Level 1 exam is stated below:

• The first step requires candidates to create an account for themselves on the official website by providing the required information and selecting their preferred exam centre.
• Candidates who are eligible and wish to apply for scholarships should submit their details on time.
• Candidates who are not eligible for scholarships or are rejected for scholarships should move forward by paying the application fee and exam fee. The fees can be paid online via debit or credit card, net banking, wire transfer etc. The fee amount depends upon the time of registration by the applicant.
• There are 3 deadlines for the registration fees process; the first one is the cheapest in comparison to the last one, which is the most expensive.
• New candidates appearing for the very first time for Chartered Financial Analyst Level 1 are required to pay USD 450 as an additional one-time enrollment fee.
• During the application process, candidates must also read and accept the Candidate Agreement.
• Furthermore, the candidates must also submit the Professional Conduct Statement (comprising relevant reprimands, investigations, litigations) during the first Chartered Financial Analyst exam application and then annually and prior to every next exam registration.
• The Chartered Financial Analyst Level 1 results are declared after 2 months from the date of the exam.

Chartered Financial Analyst Level 1: Exam Pattern

Stated below are the Chartered Financial Analyst  Level 1 exam pattern instructions:

• The exam is divided into two halves, each half of the total time lasting 2 hours 15 minutes.
• There are 90 multiple choice questions in each half of the exam.
• The first half includes topics such as quantitative methods, financial reporting & analysis, ethics & professional standards, economics etc.
• The second half will comprise topics like equity, derivatives, portfolio management, corporate finance, and alternative investments. 
• It is observed that the candidates get an average of 90 seconds to answer a particular question in the Level 1 exam.
• Also, it is advisable to devote a total of 303 hours a year to clear the Chartered Financial Analyst Level 1 examination.

Chartered Financial Analyst Level 2

• Chartered Financial Analyst Level 2 evaluates an applicant’s capacity in the applicability of investment valuation concepts. 
• The exam is categorised into 4 groups having around 10 topics. The groups are Ethical & Professional Standards, Investment Tools, Portfolio Management & Wealth Planning.
• The exam for Chartered Financial Analyst Level 2 lasts for 4.5 hours. 

Chartered Financial Analyst Level 2: Registration Process

The complete registration details are listed below:

• The registration process for Chartered Financial Analyst Level 2 is quite similar to Chartered Financial Analyst Level 1.
• The eligible candidates can apply for the scholarship and the ineligible ones have to pay the exam fee before the deadline at the selected exam centre. There is no application fee this time.
• Applicants are also required to accept the Candidate Agreement and submit a Professional Conduct Statement, similarly as done for Chartered Financial Analyst Level 1.
• The result for Chartered Financial Analyst Level 2 will be out after 60 days from the date when the exam was held.

Chartered Financial Analyst Level 2: Exam Pattern

The complete Chartered Financial Analyst Level 2 exam pattern guidelines are stated below:

• This exam lays emphasis on the valuation of various assets and emphasises the application of investment tools and concepts in contextual situations.
• The exam duration is 4.5 hours.
• The exam is divided into 2 sessions, each session of 135 minutes with an optional break in between.
• A total of 88 vignette-supported multiple choice questions, 44 questions in each session, are in the Chartered Financial Analyst Level 2 exam.
• After every Vignette, there are 4-6 MCQs of 3 points each, if answered correctly.
• The average passing rate is around 45%.
• It is observed that the candidate needs to dedicate a minimum of 328 hours in a year to pass the Level 2 examination of the Chartered Financial Analyst Course.

Chartered Financial Analyst Level 3

• The final level is Chartered Financial Analyst Level 3, passing which the candidate is certified as a Chartered Financial Analyst. 
• This exam deals with portfolio management and wealth planning concepts.
• Chartered Financial Analyst Level 3 exam is graded for 360 points; one point per minute.
• Just like Level 2, the exam duration of Chartered Financial Analyst Level 3 is also 4.5 hours, which is further divided into 2 halves.

Chartered Financial Analyst Level 3: Registration Process

Listed below are the complete registration process guidelines one must adhere to.

• To register for the final level, candidates need to fill out the registration form online available on Chartered Financial Analyst Institute’s official website. Candidates have to provide relevant details and select an exam centre for themselves.
• The next step requires candidates to select the suitable options available regarding eligibility. Applicants have to provide details of their education level, profession, employer details, employer location etc.
• Once again the candidate has to read and accept the Candidate Agreement and submit a Professional Conduct Statement one last time.
• After providing all the details, the candidates can move to pay the exam form fee via credit card, debit card, wire transfer etc.
• Candidates are also required to select the format in which they want to get the study material for the Chartered Financial Analyst exam.

Chartered Financial Analyst Level 3: Exam Pattern

Mentioned below are the complete exam pattern details one must be clear of:

• This exam emphasises effective wealth planning & portfolio management by requiring the candidate to integrate all the concept domains and analytical methods given in the entire syllabus.
• The duration of the Chartered Financial Analyst Course Level 3 exam is 4.5 hours with each half of 2 hours 15 minutes.
• A total of 8-11 vignettes, followed by multiple-choice questions in the second session. 
• A total of 44 questions are asked in the Level 3 exam.
• The Chartered Financial Analyst Course Level 3 exam also includes some essay type questions with varying points.
• The applicants have to type the answers in the text box given.
• The MCQs will have 3 or more options to choose from. 
• The average passing rate was observed to be 54%.
• It is advisable to put in at least 344 hours a year to qualify the Chartered Financial Analyst Course Level 3 final exam.

Chartered Financial Analyst Course: Top Colleges in India

The detailed list of institutes offering Chartered Financial Analyst course in India along with their fee details are listed below. Chartered Financial Analyst Fees vary from college to college but in most cases, it is affordable. Candidates can go through the prospectus available on the official website of all these institutes and read them thoroughly.

Chartered Financial Analyst Reference Books

The candidates can follow several reference books while preparing for the Chartered Financial Analyst course. Some of the reference books are mentioned below:

• The Cartoon Guide to Statistics by Larry Gonick and Woollcott Smith
• CFA Level 1 by Bhupesh Anand
• The Handbook of Fixed Income Securities by Frank J. Fabozzi
• 2021 CFA Level 1: Kaplan Schweser
• When Genius Failed: The Rise and Fall of Long Term Capital Management by Roger Lowenstein
• Investment Banking: Valuation, Leveraged Buyouts and Mergers & Acquisitions by Pearl and Rosenbaum

Chartered Financial Analyst Jobs

Chartered Financial Analysts attract a lot of job opportunities as their credentials are well-identified across the world. Global recognition also opens up international opportunities and chances for a better salary. Depending on the talent of the candidate, Chartered Financial Analyst certified professionals can earn an annual salary varying from Rs. 3,00,000 to Rs. 12,00,000 at the beginning of their career. The Chartered Financial Analyst Course Fee is affordable and the Chartered Financial Analyst Salary prospects improve after gaining a certain amount of experience. Some of the top job profiles with work details are given below:

• Risk Manager: They analyse a financial risk an organisation may face, and try to provide related solutions. They also aid by analysing risk situations in new organisations.
• Private Bankers: Helps in maintaining clients in maintaining their accounts and by analysing various financial services and associated risks. Private bankers also sell the financial services of the banks to individuals. 
• Investment Manager: Offers help to clients regarding investment options like buying and selling of mutual funds, bonds, stock and securities. 
• Chief Executive Officer: CFA CEO helps with financial management and financial decisions of companies.
• Chief Financial Officer: CFO professional manages the entire financial resources and budgets of the organisation and analyzes the associated risk and opportunities of different undertakings. They also collaborate with various subordinates and aid in making the best decision for the company.
• Chartered Financial Analyst: These individuals aid in making the financial decisions of the company such as tracking stock performances and even investment management etc. These analysts also do research & track the financial position of their clients.
• Business Consultant: These consultants are tasked with various aspects of the business organisation like marketing, operation, finance and accounting, and marketing. They also look into the overall operations and effectiveness of the business.
• Market Research Analyst: They collect data from the market from the customers, competitors, etc. They take stock of the entire market conditions and provide the company’s top brass information about the next course of action.
• Portfolio Manager: Their main role is to create and manage the investment portfolio of different clients. They try to understand the trend in the market and maximise the clients’ return on investment.

Chartered Financial Analyst Salary

Listed below are the best Chartered Financial Analyst Jobs and salary packages offered to Chartered Financial Analyst certificate holders. Chartered Financial Analyst Fees are less and one still gets decent pay after completing this course. Chartered Financial Analyst Salary may vary depending on several factors like prior work experience, skill set etc.

Chartered Financial Analyst Top Recruiters

Chartered Financial Analyst Jobs are growing rapidly. Chartered Financial Analyst Salaries are also well paying. The top recruiters who hire professionals who have Chartered Financial Analyst course certificate and Chartered Financial Analyst course skill set include:

Chartered Financial Analyst Course Comparison

Chartered Financial Analyst course is a professional course, well known amongst students in India. However, once the candidates complete their graduation, they are often confused between CA, CFA & MBA. The following information provides a detailed comparison amongst these courses and aids the students in choosing the best course for themselves.

CFA vs CA

CFA (Chartered Financial Analyst) & CA (Chartered Accountancy), both are excellent courses that offer success in future. Earlier, candidates knew only about CA, but with time Chartered Financial Analyst course has also become popular amongst students. Given below are some of the key differences between the two courses.

CFA vs FRM

CFA and FRM (Financial Risk Manager) are popular certificate courses. Chartered Financial Analyst course gives deep insight into the financial and investment management field whereas the FRM course offers knowledge about financial products and markets, quantitative analysis etc. Given below are the key differences between the two courses. 

CFA vs CMA

Candidates often get confused when choosing between CFA & CMA (Certified Management Accountants) because both are well-recognised courses in the field of management & finance. Chartered Financial Analyst course offers knowledge about financial management and risk management and enhances various skills related to finance and risk management. CMA basically puts emphasis on accounting management and related skills. Given below are the differences related to CFA vs CMA. 

CFA vs MBA

MBA (Masters of Business Administration) has always been one of the most popular and respectable courses to pursue as it offers a high paying salary. Various MBA specialisations also act as an incentive for candidates to select their preferred specialisation in the top MBA colleges of India. Chartered Financial Analyst course on the other hand, is a globally recognised and reputed course that can guarantee great jobs in future. Chartered Financial Analyst course aids candidates in learning skills such as financial accounting, managing investments, analysing risks and other financial operations. Key differences between the two are given below: