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What is CFA Level 1 and it’s Syllabus?

Syllabus

CFA (Chartered Financial Analyst) is the professional course coveted world over by aspirants wanting to break into the investment industry. CFA is a professional charter offered by America based CFA institute; becoming a charter can open doors for students in various portfolios like CFO, Risk Consultant, Equity Research Analyst, Wealth manager, etc.

Requirements for becoming a CFA charter

  • Candidate must have four years of professional experience and a bachelor’s degree.
  • Pass all CFA levels(CFA level 1, Level II and Level III).
  • Candidate should have an international passport and complete assessment in English.
  • Adhering to the CFA Institute Code of Ethics and standards of professional conduct.

 

Note: For undergraduate students, Bachelor’s program must be completed before registering for the level II exam.

CFA level 1 and syllabus

CFA has three levels of exam. To crack CFA candidate has to focus on 10 knowledge areas which can be divided into four modules. Students are tested on these four modules with difficulty level increasing from CFA level 1 through to CFA level 1II.

Four Modules to be covered in CFA level 1:-

  • Ethics and Professional Standards
  • Investment tools {( a.) Corporate Finance, ) Economics, c.) Financial Reporting and Analysis d) Quantitative Methods)}
  • Asset Classes { a.) Alternative investments b.) Derivatives c.) Equity Investments d.) Fixed incomes}
  • Portfolio Management and Wealth Planning.

Weightage of each topic in CFA level 1 2019

                                  Topics                            Weightage
Ethics and Professional Standards                                 15 %
Corporate Finance                                 10%
Economics                                 10%
Financial Reporting and Analysis                                 15%
Quantitative Methods                                 10%
Alternative Investments                                   6%
Derivatives                                   6%
Equity Investment                                   11%
Fixed incomes                                   11%
Portfolio Management and Wealth Planning                                    6%

 

CFA level 1 Preparation Tips

CFA level 1 syllabus requires at least 300 hours of preparation ideally. So if you start your preparation six months prior to the exam and devote 2 hours daily and last one month for revision you are very likely to crack the exam.

An ideal time table can look like this:-

                                  Topics                            Days devoted( two hours daily)
Ethics and Professional Standards                                35 days
Corporate Finance                                8 days
Economics                                12 days
Financial Reporting and Analysis                                30 days
Quantitative Methods                                15 days
Alternative Investments                                  7 days
Derivatives                                 8 days
Equity Investment                                 13 days
Fixed incomes                                  13 days
Portfolio Management and Wealth Planning                                   9 days
 

Total

 

150 Days(300 hours)

 

 

Last month (6th month) should be devoted to revision and Mock Test.

Few tips:-

  • Starting preparation with topics you find easy will keep you in good stead.
  • Keep yourself on schedule and keep marking the calendar as you proceed towards CFA level 1 syllabus completion.
  • Don’t leave practice exercise for later, solve each exercise and master Learning Outcome Statements (LOS)
  • Don’t miss out on any concept from the CFA curriculum
  • Practice only with CFA approved Calculators
  • Go by definition of CFA curriculum; the topics to be covered in the CFA level 1 syllabus might prove to be very vast, so it’s better to speak with an instructor who can help you outline the curriculum with respect to how deep you need to go.
  • Take a mock test as if you are taking the exam. So make time for a 3-hour long mock test in the morning and 3hours in the afternoon after a sojourn break.

CFA Level 1 exam and results:-

Exams are held on: – Twice a year in the month of June and December respectively

Duration: – 6 Hours (Divided into two sessions Morning and Evening)

No. of Questions: – 240 (120 in each session)

Results are declared 60 days after the date of the exam. Results can be viewed on the CFA website however you will also be notified via E-mail.

Conclusion

CFA level 1 syllabus is not for students who are casually interested in pursuing it. So if students of non-finance and economics background taking the exam should know that they have to work harder if they intend to make the cut. Being a CFA charter in itself opens doors like no other and will help you fulfill your dreams professionally.

Check all information for CFA Exam such as registration, application, admit card, exam date, result, etc. at https://www.shiksha.com/banking-finance-insurance/cfa-exam