Certification in Finance and Accounting (CFA)
CFA Course Details
• CFA Full Form is Chartered Financial Analyst. CFA is a professional degree offered by the CFA Institute, USA.
• CFA Course Duration ranges from 1.5 - 4 years. In order to seek CFA admission, the candidates must be graduates in any stream. However, candidates in the final year of graduation can seek admission in CFA Level I.
• The CFA course has no entrance examination. Firstly, the candidates need to register themselves before starting with the course.
• The candidates need to pass all three levels of the Chartered Financial Analyst course. The three levels are CFA Level I, CFA Level 2 and CFA Level 3.
• The CFA Course Fees in India range from INR 190,000- 5,86,000.
• The different sectors where the candidates can find jobs after the completion of the course are Banks, audit firms, Legal houses, investment, etc.
• Candidates get opportunities to work as Chartered Financial Analysts, Investment Managers, Portfolio Managers,s, etc. after completion of the CFA course.
• The average salary of a Chartered Financial Analyst without a CA degree can range between INR 4,00,000- 20,00,000.
• After completion of the degree, a Chartered Financial Analyst gets placed in top financial companies such as JP Morgan, PwC, HSBC, PBC, Ernst, and Young, etc.
CFA Institute
The Association for Investment Management and Research (AIMR) was the previous name of the CFA Institute. Through its exams and certifications, the CFA Institute ensures that investment professionals adhere to high-quality standards. In addition, the Investment Foundations Program and the Certificate in Investment Performance Measurement are offered by the CFA Institute.
Each of the 20 board members of the CFA Institute is elected to serve a three-year term. This organization has regional offices in New York, Beijing, Hong Kong, Mumbai, London, and Brussels in addition to its headquarters in Charlottesville, Virginia. It is recognized as a preferred standard by 31,000 investment firms.
The CFA Organization offers different testament projects, for example, an Endorsement in ESG Contributing, Venture Establishment Endlessly declaration in Speculation Execution Declaration. However, its Chartered Financial Analyst Course is primarily what makes it popular. The CFA Institute has graduated over 178,000 Chartered Financial Analysts, who have an impact on 162 global markets (Nations).
Why Study CFA Course?
Some advantages of taking the CFA course are as follows:
• A Credential for the World: The certificate presented by the CFA establishment is acknowledged in north of 165 nations all over the planet. The CFA Institute is regarded as the gold standard for investment professionals' professional credentials.
• Huge Financial Market Opportunities: In general, mobile wallets, mutual funds, and investment will increase employment opportunities in the financial industry in the future. From USD 102.84 billion in 2020 to USD 111.45 billion in 2022, the investment market, particularly the investment banking sector, is anticipated to reach USD 137.97 billion in 2025. CFA charter holders will therefore have numerous job options in the future.
• A good payment: A Chartered Financial Analyst can anticipate earning between INR 3,50,000 and INR 35,00,000 annually after completing the course. The CFA Institute estimates that a Chartered Financial Analyst can earn INR 94,02,021 annually on the international market.
• Extent of professional success: In the financial industry, CFA graduates frequently find employment in higher-level positions. The majority of Chartered Financial Analysts, according to the CFA Institute, are employed by major financial institutions worldwide, including JP Morgan Chase, UBS, RBC, Bank of America ML, HSBC, Wells Fargo, and Morgan Stanley. Consequently, joining such a prestigious alumni network affiliated with the aforementioned top companies would not only help applicants achieve career success but also bring happiness to their lives.
• Chance to join a privileged alumni network: According to the CFA Institute, there are only 178,000 Chartered Financial Analysts in 162 nations. As a result, being a part of such a prestigious alumni network and working for top companies would not only provide candidates with satisfaction but also support for a successful career. There had been an increase in the number of Chartered Financial Analysts worldwide as a result of the CFA Course's popularity. The number of Chartered Financial Analysts has grown by 7% annually.
• Enhance your financial acumen: The program empowers candidates to acquire the capacities expected to work in the monetary area. Portfolio management, wealth planning, derivatives, corporate finance, and alternative investments are all covered in the CFA curriculum, which helps students gain a better understanding of the financial industry and its services.
• Option for Entrepreneurship: After completing the CFA course, candidates can start their own consulting businesses with the skills they've acquired. Because 71% of Indians would rather receive financial guidance from a qualified professional, investment management is a viable entrepreneurial option.
CFA Eligibility
To be eligible for the course, CFA candidates must satisfy the following CFA requirements or eligibility requirements.
• Candidates must have a bachelor's degree or its equivalent from a recognized college or university in any field.
• The CFA course can also be taken by candidates who are in their final year of their Bachelor's degree program. However, in order to register for the CFA level 2 exam, candidates must have completed their Bachelor's degree.
• Before registering for the level 1 exam, candidates must have a minimum of 4000 hours of work experience or a combination of 4000 hours of work experience and higher education over a minimum of 3 consecutive years.
• A Fascinating CFA Prerequisite is that the individuals who are doing temporary jobs or articleship or have their own business will likewise be considered work insight, on the premise you can show that you are paid for this. Check: Jobs as a CFA do not require work experience in the investment market; however, candidates must demonstrate leadership and teamwork, business communications, critical thinking and problem solving, time management, professional judgment, analytical skills, and adaptability. Additionally, candidates must possess an international passport in order to become CFAs.
• Candidates for the Chartered Financial Analyst designation are required to submit a professional compliance statement, which is another important requirement. Both the study materials and the exams will be conducted in English.
CFA Admission 2022
• A merit list is used to select students for the CFA program.
• The CFA institute bases admission criteria on work experience in addition to graduation grades.
• Before they can register for the exam, candidates must create accounts on the CFA website.
• During the registration process, candidates have the option of selecting scholarships.
• Candidates can choose their preferred exam cycles based on their preference for the various exam levels.
• Up-and-comers can enroll for the powerful after they pass the past level.
CFA Course Fees
| Registration Type | CFA Course Fee (USD) | CFA Exam Fees in Indian Rupees |
| Early Registration | 900 | 69660 |
| Standard Registration | 1200 | 92880 |
CFA Subjects
The Course content of the different levels of the CFA Exam namely, CFA Level 1, CFA Level 2, and CFA Level 3 revolves around 10 core curriculum topics. Although the CFA course syllabus involves almost the same subjects in each level of exam, the difficulty level of the exam is increased with the levels of the exam.
The core curriculum topics have been tabulated below.
| Column1 | Column2 |
| CFA Core Curriculum Topics | Description |
| Ethical and Professional Standards | It introduces the candidates to ethical behavior and the need for professionalism in the investment market. |
| Quantitative Methods | Deals with Descriptive Statistics, Probability Theory and Investment decision-making aspects. |
| Economics | This subject deals with the supply and demand analysis of individuals and firms, along with microeconomic concepts and market structure. |
| Financial Statement Analysis | It offers a thorough explanation of the financial reports along with their standards and procedures. |
| Corporate Issuers | It deals with corporate governance and stakeholder management. |
| Equity Investments | It is related to the study of the security markets, indexes and equity investment areas of the economy. |
| Fixed Income | Helps in Learning about fixed income securities, factors risking it, measures to maintain them and its measurement techniques |
| Derivatives | It helps in understanding the basics of derivatives and the framework of the derivative market. |
| Alternative Investment | This involves the concept of hedge funds, private equity, real estate, infrastructure and others. |
| Portfolio Management and Wealth Planning | This helps with the proper understanding of the fundamentals of portfolio management and wealth planning. |
CFA Exam
The CFA exam for the different levels is held around the entire year. The weightage of the course curriculum varies according to the different levels of the exam. The passing rate of the different levels is comparatively less as it hovers between 40-50%.
CFA Level 1
The CFA Level 1 exam has been changed to a computer-based from a paper-based format. This exam will be conducted in February, March, May, July, August, and November.
CFA exams are now held across India with limited capacity and added restrictions. Aspirants who have missed the November exam due to the ongoing pandemic can opt for the Online Proctored Test (OPT) offered by the CFA Institute. Additional data regarding OPT will be provided to the candidates via email.
CFA Level 1: Registration Process
• First, candidates should create an account on the CFA Institute website, and give the necessary appropriate information and select their preferred exam center.
• If the candidates are eligible and wish to apply for any scholarship, they must register as early as possible and submit their scholarship application.
• If candidates are not awarded any scholarship, then the next step would be to pay their application and exam fee which can be done through credit card, wire transfer, etc., and the amount depends upon the time of registration by the candidates.
• There are 3 registration fee deadlines; the first one is the cheapest and the last one is the costliest.
• If candidates are registering for CFA Level 1 for the first time, then they are required to pay an additional one-time enrollment fee of USD 450.
• During registration, candidates should read and accept the Candidate Agreement.
• Candidates must also submit the Professional Conduct Statement (disclosing relevant reprimands, litigations, Investigations, etc.) upon the first CFA exam registration and then annually and before every next exam registration.
• The results are declared after 60 days from the date of the exam.
CFA Level 1: Exam Pattern
The following are the CFA Level 1 Exam pattern and guidelines.
• The entire exam would be divided into two half each of a time period of 2 hours 15 minutes.
• There would be 90 MCQ questions for each half.
• The first session would cover topics such as ethics & professional standards, quantitative methods, economics, and financial reporting and analysis.
• The second session includes questions about corporate finance, equity, fixed income, derivatives, alternative investments, and portfolio management
• Candidates get an average of 90 seconds to answer a particular question in the level 1 exam.
• It has been observed that the candidates must spend 303 hours a year to pass the CFA level 1 exam
CFA Level 2
The CFA Level 2 exam is designed to evaluate a candidate's capability in the application of investment valuation concepts. In the CFA Level 2 examination, candidates will come across 10 topics that have been grouped into four areas which are: Investment Tools, Ethical and Professional Standards, Portfolio Management, and wealth planning. The total duration of the level 2 exam is 4.5 hours.
CFA Level 2: Registration Process
• The process is almost the same for CFA Level 2, as it was for CFA Level 1.
• The eligible candidates can apply for the scholarship programs. If not, then the candidates are required to submit the exam fee payment before the deadline after selecting the exam center. There will be no enrollment fee this time.
• Candidates must read and accept the Candidate Agreement and submit a Professional Conduct Statement, as done for Level 1.
• The results are declared after 60 days from the date of the exam.
CFA Level 2: Exam Pattern
The followings are the exam pattern and the guidelines that the candidates must follow for the level 2 exam
• The duration of the CFA level 2 exam is for a period of 4.5 Hours.
• The exam is divided into two halves each of a duration of 135 minutes with an optional break in between.
• There are a total of 88 Vignette-supported Multiple choice questions. Thus there would be 44 questions in each session
• There would be 4-6 MCQs after each Vignette. Each MCQ is awarded 3 points for each correct answer.
• It focuses on the valuation of various assets and emphasizes the application of investment tools and concepts in contextual situations.
• The average passing rate is 45%.
• The candidates need to put in 27 hours per month and overall 328 hours a year to pass the level 2 exam.
CFA Level 3
CFA Level 3 exam is the final level after which candidates can be certified as Chartered Financial Analysts. The CFA Level 3 exam focuses on wealth planning and portfolio management. The CFA level 3 exam is graded for 360 points, which stands at one point per minute. The duration of the level 3 exam is 4.5 hours, which is divided into two sessions.
CFA Level 3: Registration Process
• To register for CFA Level 3 exam, candidates are required to fill it’s the registration form online on the official website of the CFA Institute with the necessary details and select the preferred exam center.
• The next step would be to select suitable eligibility criteria from the given options. Candidates are required to fill in the details of their profession, employer, employer location or education level.
• Read the Candidate Agreement and accept it after properly reading it.
• Candidates are required to select the format of the CFA study material they wish to get.
• Candidates must fill in the fees via credit card, wire transfer, and other payment methods.
CFA Level 3: Exam Pattern
The followings are the details and guidelines of the CFA Level 3 exam:
• The entire duration of the CFA Level 3 exam is for a period of 4.5 hours with each session divided into a period of 2 hours and 15 minutes.
• There will be a total of 8-11 Vignettes followed by MCQs in the second session. The total number of MCQs for the Level 3 exam is 44.
• There are also essay-type questions that have varying points accredited to them.
• The candidates have to type the answers in the text box.
• The MCQs will have 3 or more choices.
• It focuses on effective wealth planning and portfolio management by requiring the candidate to synthesize all the concepts and analytical methods in the entire curriculum.
• The candidates are required to put in about 344 Hours a year to pass the level 3 exam.
• The average passing rate was 54%.
CFA Salary in India
After the completion of the CFA certification course, a Chartered Financial Analyst can get employed in the following positions Business Consultant, Investment Manager, Private Banker, CFO, and many more. The candidates can get an average salary of INR 8,00,000-INR 20,00,000.
Let us discuss the CFA salary in India for the different job profiles.
| Job Profile | Job description | Salary |
| Chartered Financial Analyst | The Chartered Financial Analysts are tasked with making the financial decision of the company regarding investment management , track stock performances, etc. They have to research and track the financial position of the different companies as well as individuals. | INR 4,00,000-INR 16,00,000 |
| Business Consultant | The business consultants are concerned with the different aspects of the business such as the finance ,accounting, marketing, operation, etc.They are concerned with the overall operation and effectiveness of the business | INR 989,000 |
| Market Research Analyst | They collect data from the market from the customers, competitors, etc. They take stock of the entire market conditions and provide the company’s top brass information about the next course of action. | INR 337,000 |
| Investment Manager | The main job role of the investment manager is to provide the companies or individual clients with advice regarding the various investment options such as buying or selling of bonds, mutual funds, securities and stock. | INR 13,00,000 |
| Portfolio Manager | Their main role is to create and manage the investment portfolio of different clients. They try to understand the trend in the market and maximise the clients’ return in investment. | INR 10,86,000 |
| Private Bankers | They help their individual clients to maintain their individual account and financial risks and services. They also sell various financial services of the bank to the individual clients | INR 624,000 |
| Risk Manager | They identify the financial risk that the organisation may face in the future and try to find a solution so that they are able to mitigate the risk. They also check the financial risk of new business ventures | INR 998,000 |
| CFO | CFO manages all the financial resources of the organisation and assesses the risk and opportunities of different ventures. They collaborate with the different subordinates to make the best decision for the company | INR 34.45,992 |