What Is CFA Course? Eligibility, Requirements & Exam Pattern

An Overview of the CFA Course

The CFA course full form is Chartered Financial Analyst. It equips individuals with a range of finance and investment-related subjects, including business analysis, probability theory, statistics, fixed income, economics, financial analysis, alternative investments, portfolio management, and more. Majorly, it’s designed for finance and investment professionals.

The CFA exams are computer-based and divided into three levels. Level I focuses on the basics, Level II on asset valuation, and Level III on portfolio and wealth management. Students who are interested in finance related courses can study in USA or any other country & enrol in their desired university.

In finance and investment, it is considered the gold standard in the industry and is accepted in nearly 165 countries. CFA certification aims to prepare learners to become skilled and ethical financial analysts who serve as a global benchmark in finance, accounting, asset management, and the investment banking industry. Now that you know about the CFA course, let us get more details in the next section.

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What Are CFA Course Details?

Before appearing, candidates must have access to CFA course details, such as the exam structure and format, so that they can attempt it with confidence. This program is specifically structured around three levels of exams, each covering a progressively advanced curriculum across various subjects. Here is the detailed overview of each exam level.

Level I

For the Level I CFA course fees is USD 990, and the standard fee is USD 1290. This  Level I tests candidates’ ability to understand finance through ten different areas. It consists of multiple-choice questions and focuses on investment tools and concepts, including key terms, principles, and basic finance concepts. Below are the CFA subjects areas with their respective weightings.

Level II

In the Chartered Financial Analyst course, the Level II focuses on asset valuation and in-depth financial analysis, building upon the financial knowledge acquired in the Level I. For this level, the CFA course fees remain the same as those for Level I. It includes 22 mini case studies with 88 MCQs and questions related to International Financial Reporting Standards (IFRS). Here is the topic area with its weightage.

Level III

In the third Level of the CFA course, candidates have to prove their ability to integrate the knowledge and skills from the previous levels, and focus on portfolio and wealth management. Early bird fees for Level III in CFA are USD 1090, and the standard fee is USD 1390. The exam format includes a mix of multiple choice and essay questions in various subject areas.

You now have the overall CFA course details from the above section. It’s time to move forward and know the exam pattern.

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What Is the Pattern of the CFA Exam?

The CFA exam is computer-based, consisting of three levels with a specific format. In this exam, you will find MCQ and essay questions that you have to complete within the given time frame. Here is the CFA exam pattern structure for all sections, along with their time duration.

There is no negative marking for incorrect answers, in any level. To become more familiar with the exam, knowing of the eligibility criteria and requirements is essential. Let’s read about it the next section.

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How to Become a CFA?

The CFA course duration is 2.5 to 4 years to complete all three levels, including the exams and required work experience. Each level is designed to take between 6 to 12 months for preparation. For Level I- 300-322 hours, Level II- 300-350 hours, and Level III, around 344 hours of preparation are essential. 

Understanding the eligibility criteria and other requirements is an essential part of your journey. Each candidate must fulfil the requirements for the exam. Read below for detailed information.

Eligibility Criteria & Requirements

Here are the CFA eligibility and educational requirements that candidates must fulfil:

• Candidates must have a bachelor’s degree or equivalent from a recognised institution. Those in the final year of their undergraduate programs are also eligible for the Level I exam, and their graduation must be completed before they can apply for the Level III.
• You must accumulate 4,000 hours of qualified professional work experience over a minimum of 36 months. This can include your internship, part-time work, or full-time employment.
• Per calendar year, candidates can attempt this exam a maximum of two times, with a minimum gap of six months between attempts.

Steps to Become a Chartered Financial Analyst

Every individual’s path to becoming a CFA may be different. Here are the most common paths you can choose to become a Chartered Financial Analyst.

• Enroll for the Program -Enrol for the CFA program, and fulfil the requirements, such as a bachelor’s degree, work experience, an English exam, and an international travel passport.
• Pass CFA Exams -Fulfil the CFA eligibility and requirements, and then pass all three levels in their respective subjects.
• Obtain Qualified Work Experience -Work experience is required, which can be achieved before, during, or after the CFA exam in the finance and investment management fields.
• Submit Reference Letters -Begin preparing reference letters after gaining work experience and submit them to the CFA Institute.
• Apply to Become a CFA - After meeting all the above requirements, submit the payment, get a membership from the CFA Institute, and apply to become a CFA and wait for the response.

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Conclusion

The CFA designation helps professionals gain in-depth knowledge of finance and investment management, and ethical conduct, which are highly valued in the finance industry. With this blog, you have got essential details about the CFA course, including exam pattern, eligibility, and other requirements.

Before step into the finance industry, you need a solid foundation to stand on. Ultimately, CFA can teach you the core investments and finance concepts for the real-world application and beneficial for practical skill development.

For additional knowledge in finance and investment, you can pursue more programs. To explore the best options, you can use the course finder, an AI-based tool and set the filters based on your requirements.

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FAQs

1. How Many Levels Are There in CFA?

Ans. The CFA certification program has three different levels, and these are Level I, Level II, and Level III. Each level builds upon the previous one and increases the complexity.

2. Who Can Do CFA?

Ans. Anyone with a bachelor’s degree or those who are in the final year of a bachelor’s program can do the CFA. Additionally, with at least 4000 hours of qualified work experience, one can pursue the Chartered Financial Analyst designation. Remember, candidates must have fluency in English and a passport for registration.

3. What Is the Full Form of CFA?

Ans. The CFA exam full form is Chartered Financial Analyst, which is a globally recognized professional designation awarded by the CFA Institute since 1947.

4. What Is the Salary of a CFA?

Ans. In India, the average salary of a CFA varies based on work experience, role, and location. Candidates with entry-level positions may earn from 6 to 12 lac per annum, while experienced professionals may get higher packages with around 25 lac, especially in portfolio management.

5. What Exactly Does a CFA Do?

Ans. The role of a CFA is to focus on investment management, financial advising, and research analysis using their expertise to analyze financial data and develop investment strategies. They have to manage their clients’ portfolios to achieve desired financial goals.

6. Is CFA Tougher Than CA?

Ans. CA is considered more difficult than CFA, but both exams are challenging and known for broader curricula, longer duration, and equipped with practical training requirements. Both exams are often known for lower passing rates, but strategic planning and practice can improve your training to pass the exams.