CAIA Exam 2021 - Dates, Application, Admit Card, Syllabus & Exam Pattern
CAIA Exam - The CAIA exam is conducted by the CAIA Association which is a world leader in education in the domain of alternative investments. Candidates who want to obtain the Chartered Alternative Investment Analyst (CAIA) designation are required to clear both levels of CAIA exam in order become charterholders. The CAIA charter is one of the most desired professional designations for individuals who want to validate their expertise and advance their career and professional standing in the area of alternative investments. In order to obtain Chartered Alternative Investment Analyst status, candidates are required to pass the two levels of the CAIA exams.
These are highly competitive examinations and the CAIA syllabus requires intensive study, understanding and knowledge and it ensure that the CAIA charterholders are the most skilled individuals in their domain of expertise. In this article candidates can know Chartered Alternative Investment Analyst course details such as eligibility criteria, requirements, registration process, exam dates, exam structure, fee, study material and much more.
CAIA Exam: Overview
Item | Details |
Name | Chartered Alternative Investment Analyst |
Abbreviation | CAIA |
Governing body | CAIA Association |
Exam type | International charter |
Test centre administration | Pearson VUE |
Exam duration | 5 hours (each) |
Number of questions | CAIA level 1: 200 questions CAIA level 2: 100 questions |
Question type | Multiple-choice type, constructed response type |
Charter validity | No expiration; annual membership renewal required |
CAIA Exam Eligibility
There are no specific CAIA requirements for eligibility as candidates from any academic or professional background can appear for the Chartered Alternative Investment Analyst exams. Despite this, there are certain CAIA requirements which candidates are expected to have met prior to giving the exam. Candidates are expected to have completed at least an undergraduate qualification (in any field) but must have an ardent interest in alternative investments and must be associated with an organization in the CAIA Association database. As the Chartered Alternative Investment Analyst (CAIA) exams are highly competitive in nature and require candidates to have a deep understanding of the subject matter, professionals who have worked in the domain of alternative investments or are graduates in a similar domain are the most eligible for this charter.
CAIA Exam Requirements
In order to obtain the Chartered Alternative Investment Analyst credential, students need follow a number of steps for clearing the requisite exam and meet the CAIA requirements. These steps include:
The candidate must enroll to the CAIA program and register for any CAIA exam. As the two exams are to be cleared in chronological order, the candidate must register for CAIA exam: level 1 at the time of program enrollment. For CAIA exam: level 2 candidates, the enrollment fee is not necessary.
Upon registration for the exam, the candidate can select the preferred Pearson VUE testing centre as per his or her location. According to the availability at the selected test centre, candidates must select a test date within the requisite window for the specific CAIA exam.
In case the candidate wants to reschedule his or her exam, it can only be rescheduled to a different date within the same test window. Rescheduling must be done at least 72 hours prior to the appointed test and a test cannot be rescheduled to a different window or test cycle.
Once the candidate clears the Chartered Alternative Investment Analyst level 1 exam, then he or she can clear CAIA level 2 at any point of time without adherence to any time constraints.
Upon clearing both of the CAIA exams, the candidate will be sent a personal charter to the registered address after joining as a full member of the CAIA Association. In order to maintain the CAIA charter, candidates need to maintain their membership with the CAIA Association.
CAIA Registration
The CAIA exams are conducted two times a year in two exam windows. In order to register for the CAIA exams, candidates must first meet the Chartered Alternative Investment Analyst requirements for eligibility. First time candidates need to enroll to the CAIA program and subsequently register for the CAIA exam.
In order to register for either of the CAIA exams or enrol for the program, candidates will need to fill out a number of details in order to create a CAIA account which includes personal, academic, and professional information.
CAIA Exam Dates
The CAIA exams will be administered at Pearson VUE testing centres in over 90 countries around the world. The CAIA exam is offered two times in the year in two different testing windows:
Late February/March
September
As the charter exams for CAIA level 1 and CAIA level 2 are offered at Pearson VUE testing centres, candidates have the option of choosing their specific date of preference based on test centre availability within the offered testing windows. The windows for test dates offered for both of the CAIA exam levels are separate, with the window for CAIA level 1 preceding the window for Chartered Alternative Investment Analyst level 2.
CAIA Fees
The payment and CAIA fees requirement in order to pursue the Chartered Alternative Investment Analyst designation, include the level 1 and level 2 CAIA exam fees and the program enrollment fees. For first time test takers (CAIA level 1), the payment is a combination of the exam fee and the program enrollment fee. For CAIA level 2 test takers, the program enrollment fee is not required and only the exam fee payment needs to be made. Candidates who do not clear either of the exams can retake the CAIA exam without having to go through program enrollment as well. The fee for retaking any CAIA exam is same for both the levels. The CAIA course fees in India will include components such as enrolment fee, registration, and fee for retaking the exam.
CAIA Exam Pattern
As the CAIA exams are highly intensive in nature, individuals must ensure their knowledge and understanding of the various CAIA subjects in order to pass the CAIA level 1 and CAIA level 2 exams. On an estimate which has been based on Chartered Alternative Investment Analyst candidate feedback, the CAIA Association states that at least 200 hours of study are required to cover the CAIA curriculum for each level exam, varying according to the individual students requirements. Both the CAIA exams comprise approximately 30% questions which require candidates do perform calculations. The CAIA exam for level 1 comprises 200 multiple choice questions which are divided amongst various subject areas as given below.
CAIA Exam Level 1 Structure
CAIA Level 1 Topic | Weightage |
Professional standards and ethics | 15% - 20% |
Introduction to alternative investments | 20% - 25% |
Real assets | 10% - 20% |
Hedge funds | 10% - 20% |
Private equity | 5% - 10% |
Structured products | 10% - 15% |
Risk management and portfolio management | 5% - 10% |
The CAIA exam for level 2 comprises 100 questions, of which 70% are multiple choice questions and 30% are constructed response (essay-type) questions.
CAIA Exam : Level 2 Structure
CAIA Level 2 Topic | Weightage | |
Multiple-choice question | Constructed response question | |
Professional standards and ethics | 0% | 10% |
Core and integrated topics | 0% | 10% |
Asset allocation and institutional investors | 8% - 12% | 0% - 10% |
Private equity | 11% - 15% | 0% - 10% |
Real assets | 13% - 17% | 0% - 10% |
Commodities | 5% - 7% | 0% - 10% |
Hedge funds and managed futures | 18% - 22% | 0% - 10% |
Structured products | 5% - 7% | 0% - 10% |
Total | 70% | 30% |
Both the CAIA exam levels are a total of 5 hours in duration with the actual test being a 4-hour ordeal. The remaining hour comprises various administrative activities and the optional break between the two 2-hour test windows. The testing schedule and time allocation as given by the Chartered Alternative Investment Analyst Association is:
CAIA Exam Test Schedule
Nondisclosure agreement | 5 minutes |
Exam instructions | 5 minutes |
Section 1: In both CAIA level 1 and CAIA level 2 this has 100 multiple choice questions | 120 minutes |
Comment period (optional) | 10 minutes |
Break (optional) | 30 minutes |
Section 2: In CAIA level 1 this has 100 multiple choice questions; in CAIA level 2 this has 3 sets of constructed response questions | 120 minutes |
Comment period (optional) | 10 minutes |
Total CAIA exam session time | 5 hours |
CAIA Exam Syllabus
The syllabus of CAIA exam for prospective Chartered Alternative Investment Analysts is regularly revised by the CAIA association in order to accommodate current changes, academic research and industry development. This ensures that the CAIA charter remains relevant for charter holders. The syllabus differs for both of the CAIA exam 2021 levels, the combination of which ensures that the topics covered through the CAIA exam syllabus are comprehensive in the domain of investment banking.
CAIA Exam Syllabus - CAIA Level 1
Subject Area | Topics |
Professional Standards and Ethics |
|
Introduction to Alternative Investments |
|
Real Assets |
|
Hedge Funds |
|
Private Equity |
|
Structured Products |
|
Risk Management and Portfolio Management |
|
CAIA Exam Syllabus - CAIA Level 2
Subject Area | Topics |
Asset Allocation and Institutional Investors | Asset allocation process and the mean-variance model Tactical asset allocation, mean-variance extensions, risk budgeting, risk parity, and factor investing The endowment model Pension fund portfolio management Sovereign wealth funds The family office model |
Private Equity | Private equity market structure Private equity benchmarking Fund manager selection and monitoring Private equity operational due diligence Private equity investment process and portfolio management Measuring private equity risk The management of liquidity |
Real Assets | Real estate as an investment Real estate indices and unsmoothing techniques Investment styles, portfolio allocation and real estate derivatives Listed versus unlisted real estate investments International real estate investments Infrastructure as an investment Farmland and timber investments Investing in intellectual property |
Commodities | Key concepts in commodity markets Allocation to commodities Accessing commodity investment products |
Hedge Funds and Managed Futures | Managed futures Investing in CTAs Relative value strategies Hedge funds vs. directional strategies Hedge funds vs. credit strategies Volatility, correlation, and dispersion products and strategies Hedge fund replication Funds of hedge funds and multi strategy funds Hedge fund operational due diligence |
Structured Products | Regulation and compliance Structured products I vs. fixed-income derivatives and asset-backed securities Structured products II vs. insurance-linked products and hybrid securities |
CAIA Books and Study Material
The CAIA Association offers a number of books and other study material for prospective Chartered Alternative Investment Analysts. This includes CAIA level 1 books, samples papers, study guides, CAIA level 2 books, standards of practice etc. Most of these resources are available for download freely upon registration for the CAIA exam whereas some are available for purchase.
CAIA Study Material
CAIA Level 1 Books and Study Material | CAIA Level 2 Books and Study Material |
CAIA Level 1 Core Book | CAIA Level 2 Core Book |
Study Guide Level 1 | Study Guide Level 2 |
Workbook Level 1 | Workbook Level 2 |
Standards of Practice | Standards of Practice |
Candidate Handbook | Candidate Handbook |
Sample Exam CAIA Level 1 | Sample Exam CAIA Level 2 |
Current and Integrated Topics |
CAIA Exam Result
The CAIA exam results for CAIA level 1 are released approximately three weeks after the last date of the exam window. The results for Chartered Alternative Investment Analyst level 2 are generally released around six weeks after the last date of the exam window. Candidates will be notified regarding the CAIA exam result via their registered email and therefore are encouraged to ensure that their contact information is up-to-date. The result only contains a pass or fail status and no individual marks or competitive ranks are displayed. The CAIA Association has not specified any specific passing score for the Chartered Alternative Investment Analyst credential. The CAIA result also contains a performance report which delineates the candidate’s relative performance level in the broad subject areas.
CAIA Association Membership
Upon passing both of the CAIA exams and receiving the Chartered Alternative Investment Analyst credential, candidates need to maintain their charter in order to use the CAIA professional designation as a suffix. Only charterholders who are in good standing can use the CAIA designation and therefore candidates must maintain membership to the CAIA Association in order to ensure that they are eligible to use the earned charter as a designation. If a candidate allows his or her membership to lapse, then the CAIA charter will be considered forfeit and in order to use it, the candidate will have to earn the Chartered Alternative Investment Analyst designation again.
Chartered Alternative Investment Analyst Association Membership
Duration of membership | Price |
One-year CAIA Association membership | USD $350 |
Two-year CAIA Association membership | USD $650 |
CAIA Salary
For successful CAIA exam-takers and subsequent charterholders, the CAIA salary is amongst the highest salaries for professionals in the domain of finance. Additionally, earning the Chartered Alternative Investment Analyst credential places charterholders amongst a group of around 9,000 elite and highly skilled professionals around the world, making them highly desirable in the eyes of prospective employers.The CAIA salary in India ranges from 5 to 25 lacs per annum depending upon the experience of the individual as well as the organization of employment. The highest CAIA salary paying job roles include positions like senior financial analyst and VP finance. Another top-paying position is Executive Director which is known to pay a staggering 55 lacs per annum!
Frequently Asked Questions (FAQs)
CFA exams have a lower pass rates than CAIA so, CFA is considered tougher than CAIA
CFA course is more popular due to its broader focus as compared to CAIA.
It's better to do CAIA along with some other popular course such as CFA in order to improve one's job prospects and knowledge.
One must at least be a graduate and be associated with an organisation in the CAIA database to be eligible for CAIA.
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