CFA Exams

CFA or Chartered Financial Analyst is a one of the highest distinctions you can earn in the investment
management profession. The Chartered Financial Analyst (CFA) Institute (USA) awards this charter to
experienced financial and investment professionals, and it boosts your finance credentials.

The CFA program consists of three exams –

1. CFA Level 1

2. CFA Level 2

3. CFA Level 3

The exams are conducted in June at test centers across the world. CFA Level 1 exam is also conducted in
December.

CFA EXAM SYLLABUS

The examinations cover –

CFA Level 1 – Tools

 Tools and concepts that apply to investment valuation and portfolio management

 Basic concepts regarding asset classes, securities, and markets

 CFA Institute Code of Ethics and Standard of Professional Conduct

CFA Level 2 – Asset Valuation

 Application of tools and concepts of investment valuation

 Industry and company analysis

 Analysis of investment vehicles and instruments

 CFA Institute Code of Ethics and Standards of Professional Conduct

CFA Level 3 – Portfolio Management

 Management of Institutional and individual portfolios

 Management of specific asset class portfolio

 CFA Institute Code of Ethics and Standards of Professional Conduct

 
CFA EXAM FORMAT

  CFA Level 1 CFA Level 2 CFA Level 3

20–30 vignettes supporting a variable

20–30 vignettes supporting
Exam Structure 240 MCQs number of constructed response and
120 MCQs
MCQs

Morning session: 3 hours; 10– Morning session: 3 hours; 8–15

Morning session: 3
15 vignettes supporting 60 vignettes supporting constructed
hours; 120 questions
questions response questions
Exam Length
Afternoon session: 3 hours; Afternoon session: 3 hours; 10–15
Afternoon session: 3
10–15 vignettes supporting vignettes supporting 60 multiple
hours; 120 questions
60 questions choice questions

Vignette-supported constructed
Question Format MCQs Vignette-supported MCQs response questions and vignette-
supported MCQs

Exam Results Within 60 days of Within 60 days of taking the

Within 90 days of taking the exam
Availability taking the exam exam

Meet CFA Program

Level
enrollment Pass Level I CFA exam Pass Level II CFA exam
Advancement
requirements

Pass Rate 43% 45% 56%

CFA FEE

As of January 2020, you would need to pay a one-time enrollment fee of $450 the first time you register
for the CFA Level I exam.

CFA EXAM ELIGIBILITY

You should meet any of the following criteria –

Bachelor’s Degree – You should have completed your Bachelor’s degree or equivalent

OR
Final-Year Student – You may register for the CFA Level 1 Exam, but you would need to complete my
degree program before being registered for CFA Level 2

OR

Professional Experience –

 You may have a combination of four years of full-time work experience and/or higher education

 You must have a valid passport

 Exams will be taken only in English, so you must be fluent with the language

 Ensure you meet the professional conduct admission criteria

HOW TO BECOME CFA CERTIFIED?

You would need to follow the following process to become a CFA –

 Take up the CFA Program

 Clear the CFA Level 1 exam, conducted in June or December (over 170 cities in June and over 70
cities in December, globally)

 Clear the CFA Level 2 exam, held only in June

 Clear the CFA Level 3 exam, held only in June

 Get CFA Institute membership

FAQs

WHY SHOULD I GO FOR CFA CERTIFICATION?

 A CFA charter can add great value to your resume

 Since the examination is pretty tough, you will have a strong grounding in finance by then and
you will gain an expertise to deal with finance issues at organizational levels

 CFA charter is among the most recognized professional qualifications in finance globally,
allowing you to work in the country of your interest

 CFA charter holders earn 54% higher median salary than non-CFA charter holders, so expect a
higher pay package in longer run

WHICH SKILLS ARE NECESSARY TO BECOME A CFA PROFESSIONAL?

Crucial skills you would need to become a CFA professional are –

 Complete knowledge of accounting and financial procedures

 Understanding of Generally Accepted Accounting Principles (GAAP)

 Working knowledge of accounting software, like FreeAgent, Zoho Books, QuickBooks Online,
Xero, among others.

 Advanced MS Excel knowledge and excel modeling skills

 Good data analysis skills.