It’s also popularly known in India as the U.S- CFA because there used to be a CFA program also offered by ICFAI which is now closed.
Globally there are around 200,000 CFA charterholders, making CFA one of the most prestigious qualifications to pursue.
My own observation of CFA growth from the year 2012 has been astonishing.
India ranks 3rd in the number of new candidates every year.
I have never come across a qualification, which is researched and so relevant for the industry even today in 2022.
It’s not me being biased about CFA but look at the linear growth of CFA qualification below.
While the Americas have be more or less stable, however the growth is pumped from Asia.
So, don’t you get surprised with the popularity alone, because the CFA program does command recruitment respect in India?
Who should pursue CFA?
Any person who wishes to make a career in Investment banking, Fund Management and core finance.
Who: If you are interested in developing expertise in investment analysis and management.
Alternate to MBA: Looking for a cost-effective qualification with the same edge.
Competitive Advantage: As a CFA candidate you definitely stand out on the basis of knowledge
Global Recognition: Recognised in more than 200 countries
Having said that you need to have a clear understanding, that CFA is an investment management focussed qualification, not a general management qualification.
Jobs and Salaries After CFA Degree – For Different levels
There are obviously tons of opportunities for candidates after CFA overall.
I am sharing representative salaries considering that you are a fresher when you start with your level 1 preparation.
I have compiled a brief video in case you would like to watch it.
Having said that even with Level 1, if you already possess some relevant experience in equity research then level 2 salaries can also apply.
What I want you to understand here is that, although the start is small eventually you are at comparable salaries without losing many years.
The CFA Course syllabus
Below is a depiction of the CFA syllabus for all levels and also the CFA level I syllabus.
Notice how the CFA syllabus progresses with the content gradually moving you into portfolio management in level 3, unlike programs like CFP.
You might ask then why CFA level one itself gets you the job? Because CFA level one syallbus has all the essential subjects, including financial reporting and analysis, Quants & economics.
CFA Subjects
Level 1
(Weightage in %)
Level 2
(Weightage in %)
Level 3
(Weightage in %)
Ethical and Professional Standards
15-20
10-15
10-15
Quantitative Methods
8–12
5–10
0
Economics
8–12
5–10
5–10
Financial Statement Analysis
13–17
10–15
0
Corporate Issuers
8–12
5–10
0
Equity Investments
10-12
10-15
10-15
Fixed Income
10–12
10–15
15–20
Derivatives
5–8
5–10
5–10
Alternative Investments
5–8
5–10
5–10
Portfolio Management and Wealth Planning
5–8
10–15
35–40
Eligibility
CFA program has no domain-specific eligibility, anyone from any background whether it is science, engineering, commerce, or maths can apply.
However, the eligibility is based on your stage of education or work experience
For Students
Bachelors Degreeor Final year of any graduation.
Your final graduation exam dates should be 11 months away.
For Non-Graduates
Even if you don’t have any formal graduation, then you can still apply for the CFA level one exam. The minimum work experience criteria is calculated as;
4000 hrs of professional work experience, which needs to be acquired a minimum of 3 or above years.
The experience doesn’t have to be investment-related.
Internships or article ships do not qualify as work experience.
Rescheduling Fee: In case you decide on a particular date for your exams on Feb 22 (let’s say), and you change your mind.
That will cost you another $250, so be careful with planning
Pre Exam Pledge: 30 Minutes (Where you take an oath and write that you will not disclose exam questions to your friends)
Session 1: 135 Minutes
30 Minutes of Optional Break
Session 2: 135 Minutes
Total testing time: 4.5 Hours (Including the break)
Appointment time: 5.5 Hours
Future planned CBT Centers worldwide
CBT: Exam Experience
Rescheduling Fee: In case you decide on a particular date for your exams on Feb 22 (let’s say), and you change your mind.
That will cost you another $250, so be careful with planning
Pre Exam Pledge: 30 Minutes (Where you take an oath and write that you will not disclose exam questions to your friends)
Session 1: 135 Minutes
30 Minutes of Optional Break
Session 2: 135 Minutes
Total testing time: 4.5 Hours (Including the break)
Appointment time: 5.5 Hours
Future planned CBT Centers worldwide
CBT: Exam Experience
Exam and Testing Pattern
In this section, I will discuss, the exam pattern design of CFA exams in detail. More or less, what you need to understand is the difference between level 2 and level 3.
CFA is as relevant in India, as it is in the global arena because most of the investment management companies in India are based out of the U.S.
Moreover, the top fund managers in India and also analysts hold the CFA designation, making the CFA program a popular recruitment anchor.
Market regulators like SEBI have been proactively working to promote the CFA designation.
Most of the job descriptions will mention CFA as their preferred education requirement.
The future of CFA Designation
The future of CFA designation will depend on how the investment industry shapes.
Let’s try to answer: “Will Investment Management business requires managers, more so will they still need knowledge?” The lead for this answer is: Technology
Use of Technology: Goldman Sachs, JP Morgan and numerous big honchos of this business, have been heavily investing in technology.
Platform-Based Research: Research on investment opportunities has been changing rapidly from a plain vanilla offering to a research on-demand service.
Sophisticated Research Models: Companies like BNY Mellon, and MSCI offer, risk management services to U.S clients.
Job description: Technology-Based Investment Manager at Marcellus
The conclusion here is that CFA gives the candidate the knowledge base, which can’t be done away with even with technology.
Preparation Tips
The process is simple and I will break this down into some easy to follow parts:
Start Early: Meaning decide your decision to pursue CFA at least 9 months before the exam attempt.
Tuition provider: Shortlist several tuition providers and decide which one of them gives you the following
Practice: You need to practice a lot and there has to be a plan for the same.
Summary Notes: You don’t need books, CFA institute provides its own curriculum which is great and reliable for the long term.
Trained Trainers: You don’t want to be learning CFA from an experienced trainer, who hasn’t taught before.
Study Plan: Invest your time in planning your preparation, this exam is more on planning.
Go for it! Hopefully, you now understand, why it’s really called the Golden Standard. Send me your queries and questions at [email protected]. Always happy to assist, inspire & mentor everyone. Cheers! Allen Aravindan, CFA
