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Chartered Financial Analyst (CFA)

Chartered Financial Analyst

Chartered Financial Analyst (CFA)

The CFA full form is Chartered Financial Analyst. The CFA designation is one of the most coveted among investment professionals all over the world. The CFA Institute offers the internationally recognised professional certificate in financial management and investment management. The CFA programme is widely considered as the most prestigious and well-known qualification in finance and investment management. Candidates who complete the course obtain knowledge of the finance and investment industries, which they can apply to their existing skills. As a result, your chances of securing a high-paying position in finance and investment management improve.

Why Study CFA

Among the advantages of taking the CFA program now are:

CFA Skills Requirements

The Chartered Financial Analyst CFA examination is difficult, as well as the road to becoming a CFA charter holder is long and winding. It is not enough to pass all the tiers of examinations to receive certification; it is also not sufficient to obtain a set of skills. The essential abilities required are mentioned below:

CFA Skill Requirements
Skills in Spreadsheet Modelling Skills in Analyze
Skills with technologies Ability to Make Choices
Capacity to Maintain Time Ability to do mathematics
Basic knowledge of investing Ethics
Disciplinary Detail-Orientedness
Diligence Self-motivation
Strong perceptive eye Ability to communicate

Becoming a Chartered Financial Analyst

Within the subject of financial analysis, the CFA charter is commonly regarded as the gold standard. Five years of relevant work knowledge as well as a bachelor of science are required. They should also satisfy the specifications for admittance to the programme in regards to professional ethics.

Students must submit all 3 levels of the CFA Program examinations within the sequence specified. Apart from Level I, which could be delivered in November, CFA Programme tests are only offered every year in June. Applicants must normally study for 1-2 hours per day so as to ace each CFA examination. There are about 43 exam centres in several countries all over the world, according to the Institution.

  • In June and November of each year, the CFA Stage I examination is conducted.
  • The exam will consist of 240 multiple-choice questions to be answered within the time duration of 6 hours.
  • It concentrates on analysis utilising the resources from the Applicant Collection of Knowledge's ten subject areas which are: accounting information and analysis, investment banking, investment funds, mutual fund investments, derivatives, investment funds, and portfolio management are all covered in this course.

  • Around once a year, in July, was its Level II examination available. 
  • It stresses any use of investing techniques and skills in contexts and concentrates on the evaluation of different securities. 
  • There are 21 methodology shows (small case studies) mostly on examination, each of which has 6 multiple choice answers (i.e 120 questions total).

  • Once a year, in May, the level 3 examination is conducted. 
  • It emphasises prudent wealth management and asset management. 
  • 8-12 organized questionnaires and 10 multiple choice questions are present in the exam. 

CFA Requirements/ Eligibility

Those interested in pursuing a career as a CFA must fulfil the requirements of the chartered financial analyst course. As a Chartered Financial Analyst Course is a postgraduate degree, hence candidates must have completed their bachelor’s.

  • Before enrollment in a CFA programme, applicants must have completed their Bachelor's degree in commerce or in any relevant discipline.
  • While registering for the CFA exam, students need to have a minimum of four years of total work experience.
  • Candidates who are in their final year of their college degree at the moment of CFA enrollment are also eligible.

Chartered Financial Analyst CFA Examination

Chartered Financial Analyst CFA Examination is a year-round exam. Each exam level has its own weighted syllabus. Between 40% and 50% of students complete the various levels.

Level I of CFA

Previously, CFA Level 1 exams were administered on paper, but now they are administered on computers. These tests would be given in February, March, May, July, August, and December. Throughout the event that you skipped the February test, you can take the Online Proctored Test through its place (OPT)

Chartered Financial Analyst Exam- Level I
Registration Process Candidates must sign up as quickly as possible and approve everyone's scholarship application form. If students are neither offered a scholarship, students must pay respective applications and examination fees. There have been three registration fee time limits: one being the cheapest, the second is the most expensive, as well as the third is the most expensive.

To enroll at CFA Levels 1, applicants must pay an extra one-time registration cost of Rs. 450. The outcomes are announced 60 days following the examination date of registration, with the last paying extra. When registering for the first exam, applicants must complete a Professional Standards Statement.
Exam Pattern The CFA Level 1 examination will be split into two halves, each lasting two hours and 15 minutes. By each quarter of a two-hour session, there would have been 90 MCQs. Ethical and occupational standards, economic, and finance monitoring and reporting would all have been covered in the first round. Financial management, equities, structured finance, commodities, investment funds, and investment management would all have been on the table for discussion. Throughout the level 1 test, applicants have 90 seconds to complete to respond to questions. Candidates should invest 303 hours every year on average to pass the tests.

Level II of the CFA

The CFA Level 2 test assesses a student’s opportunities to challenge investment appraisal principles. The 4.5-hour level 2 test has four areas of interest for students. Investing Tools, Professional ethics Guidelines, Investment Management, and Estate Planning are some of the topics covered.

Chartered Financial Analyst Exam- Level II
Registration Process During the first week of February, the CFA Tier 2 examination will start happening. By then there will be no registration charge. The findings are announced 60 days after examination dates. Students who pass the exam are eligible to apply for scholarships available if they paid the test price.
Exam Pattern The CFA level 2 examination lasts 4.5 hours but has a 45 percent success rate. The Tier 2 examination is broken down into two parts, each lasting 135 minutes with a 15-minute break somewhere between. There seem to be a maximum of 88 Multiple Choice tests that are supplemented by Vignettes. For each correct response to every MCQ, three points are rewarded. The final exam is scheduled for March. To take the exam, students must put in a total of 328 hrs throughout the course of a year. It specializes in property appraisal and stresses the use of investing techniques and skills.

Level III of the CFA

The financial management and investment management sections of the CFA Level 3 examination are the emphasis of the test. The level 3 examination lasts 4 – 5 hours and is divided into two parts. After passing a test in May, applicants can become CFA charterholders. This was the last level before applicants could be certified also as CFA.

Chartered Financial Analyst Exam- Level III
Registration Process Applicants must enroll for the CFA Level 3 test online and choose an examination hall. Applicants need to provide information about their career, job, location, and educational background. They must also pay the fees by credit or debit card, bank transfer, as well as other means.
Exam Pattern The CFA Level 3 test emphasises wealth management and investment management. The CFA Level three examination lasts 4.5 hours, from each session lasting 2 hours 15 minutes. Throughout the second session, there will also be 8-11 vignettes accompanied by Multiple - choice questions. Applicants must type their responses into the text field. To pass an exam, students must put in roughly 344 hours per year. The level three examination has a 54 percent pass rate. There seem to be 44 multiple-choice questions (8-11 vignettes) as well as an essay-style question.

CFA Institutes

The Chartered Financial Analyst Course is offered in the major institutes in India

Institution Name Location Maximum Fees
Narayana Business School, Ahmedabad INR 1,25,000
International College of Financial Planning, New Delhi INR 45,000
Central India Institute of Management Studies, Jabalpur INR 32,500
Shri Chimanbhai Patel Institute of Professional Training, Ahmedabad INR 65,336
International College of Financial Planning New Delhi INR 40,000

CFA Jobs and Salary

Candidates can work as Chartered Financial Analysts, Business Consultants, Financial Advisers, Private Economists, CFOs, as well as many other jobs after completing the CFA certification training. In India, the average salary ranges from INR 8,0000 to INR 20,0000. Let’s have a look at Chartered Financial Analyst Salary in India in India for various career roles.

Job Profile Salary Job Description
Chartered Financial Analyst INR 4,00,000-INR 16,00,000 The company's investment plans are implemented by the Professional Financial Analysts. They must undertake studies and keep tabs on the financial situation of various corporations and customers. A lot of corporations in India employ chartered investment bankers.
Business Consultant INR 989,000 Business leaders are interested in the company's total performance and quality. Finance, accountancy, advertising, operations, and other aspects of a company's general functioning have been of significance to them.
Market Research Analyst INR 337,000 The person responsible for a company's position seems to be the person to keep a record of everything that happens in it. Consumers, manufacturers, and others provide them with market information.

Top recruiters

The following are the top recruiters of CFA graduates.

Sr. No. Top recruiters
1 Reliance Industries Limited
2 Deloitte
3 Emami Agrotech Ltd
4 Citigroup
5 ICRA
6 PwC
7 HSBC
8 Axis Bank
9 HDFC Bank
10 Credit Suisse
11 JP Morgan and Co

CFA vs CA

There might be a lot of confusion between the students about which commerce stream they should opt for, is it Chartered Accountancy (CA) or Chartered Financial Analyst (CFA). Here a comparison table between the both so as to help the candidates make a suitable decision for themselves.

Factors CFA CA
Organization Chartered Financial Analyst Institute (CFAI) Institute of Chartered Accountants in India (ICAI)
Academic Eligibility Required 12th Graduation
Sector of work Finance Accounting Taxation Audit Law Finance
Focus subjects -Ethics

-Accounting

-Fixed-Income Investments

-Finance for corporations

-Investment funds in equity

Management of a Portfolio
The business world and its concepts

Keeping track of finances and monitoring

Regulations governing audit and acknowledgment
Work description Banking on investments

Management of a portfolio

Research on the stock market
Accounting for the general public

Accounting in the public sector

Accounting for leadership

Internal control accounting
Duration of the course CFA requires at least four years of professional experience, organized into four stages. CA needs a minimum of 3 years of professional experience and is split into 3 stages.

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