The path to becoming a CFA charter holder is neither easy nor for the faint-hearted. The journey is long; it will test your knowledge of the subject and also your diligence and endurance. The CFA Institute calls the program a self-study and distance learning program with a generalist approach to valuation, portfolio management, and investment analysis. It also emphasizes the highest ethical and professional standards. Let us take a look at the five things that you should know about CFA.
The structure of the exam
CFA level 1 will be a 6-hour long exam and have 240 multiple-choice questions. The exam will be split into two sections, with 120 questions to be answered in each half. The duration of each session will be 3 hours. The questions will be free-standing and not dependent on each other. Three possible choices are provided for each question and are crafted to reflect common mistakes in logic or calculation. It is recommended to take guidance from CFA classes in Delhi to achieve success in the first attempt.
The curriculum of the exam
The exam focuses on comprehension of tools and basic knowledge. It values the concepts of investment valuation and portfolio management. The curriculum consists of 10 topics that are grouped into four specific areas – investment tools, ethical and professional standards, asset valuation, and portfolio management and wealth planning. Ethics and Professional Standards are considered very important in all three levels. Other than that, the major focus would be on investment tools. It is essential to be privy to the CFA syllabus.
If you want to enrol for CFA level 1, you need to have an international travel passport and one of the following:
- a bachelor’s (or an equivalent) degree or be in the final year of the bachelor’s program
- 4 years of professional work experience, which should be related to investments, or
- a combination of professional work experience and education that adds up to at least four years.
This qualification will need to be completed prior to enrollment in the CFA course.
Jobs you will get after CFA
There are a few major profiles that you will be looking at once you have passed each CFA exam. The very first among these is a portfolio manager. This person manages and invests the funds of the client to earn a required rate of return. This is done keeping in mind the risk appetite of the client. Another opportunity is an Equity Research Analyst who works on specific equity stocks and determines if they are worth investing in and projects their future values. The person can also be working as a credit analyst, whose job is to determine whether credit can be extended to a particular entity or not.
Salary of a CFA charter holder
A CFA charter holder will earn an average of Rs. 10 lakh per year. However, the person will also be getting many bonuses and added income, depending on his performance.
These are some of the things you need to know about CFA. If you would like to earn the charter, online learning is a great way to start.