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CFA Full Form: What is CFA, Course Details, Level 1, 2, 3

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CFA Full Form: What is CFA, Course Details, Level 1, 2, 3

Edited By Team Careers360 | Updated on Oct 17, 2023 10:52 AM IST | #CFA Exam

CFA Full Form - The full form of CFA is Chartered Financial Analyst. CFA or Chartered Financial Analyst is a professional designation given to individuals who successfully complete all three levels of the CFA exam. The CFA course has three levels, which are CFA Level 1, CFA Level 2, and CFA Level 3. The CFA institute specifies different eligibility criteria for CFA at different levels. These requirements pertain to the educational qualification and work experience required of the candidates in order to appear for the exams. The CFA program can generally be completed in 1.5 years to 4 years. The CFA course is focused on covering major aspects of the investment industry like equity, fixed Income, derivatives, real estate, and so on. Students are drawn towards this course to get better job prospects in top investment firms. In this article, get to know CFA full course details including eligibility criteria, curriculum and more.
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CFA Programme- Highlights

If one is aspiring to take up the CFA course, one should definitely know more than just the full form of CFA. Candidates should be aware of all the details related to the CFA program. Given below in the table are the important highlights of the CFA programme.

Chartered Financial Analyst Programme Highlights

CFA Full form

Chartered Financial Analyst

Duration of the program

1.5- 4 years

Exam Frequency

Level 1 - Four times a year (February, May, August, November)

Level 2 - Three times a year (May, August, November)

Level 3 - Two times a year (February and August)

Conducting Body

CFA Institute

Eligibility Criteria

Graduation in relevant discipline or 4 years of work experience

Admission Process

CFA Entrance test- Level 1, Level 2 and Level 3

Mode of examination

Online

Average Fee

INR 2,00 000

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What is a CFA Course?

The CFA full form is Chartered Financial Analyst or CFA program. It is a three level course designed by the Chartered Financial Institute. The CFA program is aimed at enhancing the profession of global financial management and investment management by producing qualified professionals. The programme also aims at inculcating global practise standards among the students. The CFA program has been divided into 3 levels and each level of Chartered Financial Analyst program has its own focus and relevance.

Important - Check the Complete List of Full Forms

CFA Course Eligibility

Candidates must fulfill the CFA eligibility requirements in order to appear for the CFA exam. The eligibility requirements are different for each level. CFA aspirants are required to meet one of the following enrolment requirements as given in the table below.

CFA Eligibility Requirements

ParticularsDetails
Bachelors' DegreeGraduation in any stream.
Undergraduate student
  • Must be within 23 months of graduation to be eligible for CFA Level 1
  • Must be within 11 months of graduation to appear for CFA level 2

Professional work experience4,000 hours of qualified, professional work experience
Combination of work experience and educationWork experience and education is accrued over a duration of 36 months.

Both must me sequential and must not overlap.
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In addition to the above, candidates are also required to meet the requirements relating to professional conduct. At the time of submitting their applications, candidates are required to sign Professional Conduct and Candidate Responsibility statements.

For complete details-

CFA level 1 eligibility

CFA level 2 eligibility

Who should pursue a CFA program?

One should opt for a particular course based on one's interests, skill sets and end goals. CFA course is aimed at producing skilled finance professionals in the field of investment analysis and portfolio management. Some categories of students or professionals who can take up the CFA program are given below:

  • Fresh Graduates: Candidates who have just passed their graduation and are looking for a career in investment finance segment can choose CFA program. Completing all CFA levels would mean that the candidate is well equipped with all the world class knowledge related to the field.

  • Investment Industry Professionals: Professionals working in the investment industry can also pursue CFA programmes to enhance their career prospects. The programme would significantly improve their understanding of the financial world. The CFA certificate would be recognition of their sills and a great addition to the resume.

Relevance of CFA Programme

Before starting an academic journey, students must be clear about the goals they want to achieve after completing a particular degree/course etc. There can be many advantages of completing the CFA programme and some of the major ones are given below:

  • Large Number of Job Opportunities: A Chartered Financial Analyst has great job opportunities waiting after the completion of the program. A number of sectors like Accounting, Auditing, Taxation, Financial Services and many more as a Chartered Accountant, Financial Advisor etc have jobs roles designed specially for CFAs.

  • Bigger Pay Cheque: Another great benefit that Chartered Financial Analysts get is that they can get good salary packages. The average salary will be around INR 4 Lakhs- 40 Lakhs per annum on completion of CFA course

  • Prestige and Status: Having a CFA title with one's name is a matter of great prestige in the society. CFAs are held in high regard due to their financial knowledge and reputation of the CFA course.

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CFA Program Curriculum

The CFA programme curriculum consists of 10 subject areas. Each of these subjects has a different weight in different levels of CFA. The two tables given below describe the subject areas and also the weightage given to them. Some areas such as quantitative methods, financial reporting and analysis and corporate finance have 0% weight and are not included in the CFA syllabus for Level 3.

CFA Syllabus Subjects and Topics

CFA Subjects

Topics

Aim of Study

Ethical and Professional Standards


  • Professional Standards of Practice
  • Ethical Practices
  • Asset Manager Code of Professional Conduct
  • Presentation of Performance Results (GIPS)
  • To understand about the ethics and related challenges to ethical behavior.

  • Know the about the role that ethics and professionalism play in the investment industry

Financial Statement Analysis

  • Analysis of Financial Statements
  • Financial Reporting Quality
  • Analysis of Off-Balance-Sheet Assets and Liabilities
  • Analysis of Stock Compensation and Other Employee Benefits
  • Analysis of Intercorporate Investments and Business Combinations
  • Analysis of Global Operations
  • Building a Company Financial Model
  • Ratio and Financial Analysis
  • Financial Analysis of Banks and Insurance Companies
  • ESG considerations in Financial Statement Analysis
  • Aims to provide thorough explanation of financial reporting procedures

  • Understand the standards that govern the financial reporting disclosures

Equity Investments

  • Types of Equity Securities and Markets
  • Fundamental Equity Analysis
  • Valuation of Individual Equity Securities
  • Equity Market Valuation
  • Equity Portfolio Management
  • ESG considerations in Equity Investments
  • Understand the workings of equity investments, security markets, and indexes

  • Know how to analyze industries, companies, and equity securities as well as the use of basic equity valuation models

Fixed Income

  • Types of Fixed Income Securities and Markets
  • Fundamental Fixed Income
  • Term Structure Determination and Yield Spreads
  • Valuation of Individual Fixed Income Securities
  • Analysis of Interest Rate Risk
  • Analysis of Credit Risk
  • Valuing Bonds with Embedded Options
  • Structured Products
  • Fixed Income Portfolio Management Strategies
  • ESG considerations in Fixed Income
  • Learn about the fixed income securities and their yield measures, risk factors, markets, and valuation measurements.

  • Calculating yields, the securitization of assets, fixed income securities, bond returns and risks, credit analysis.

Corporate Issuers/ Finance

  • Corporate Structures and Strategies
  • Corporate Ownership and Governance
  • Risk Factors (including environmental and social)
  • Corporate Financing Decisions
  • Corporate Actions, Combinations, and Restructuring
  • Introduction to corporate governance

  • Know the growing impact of environmental and social considerations in investing

Quantitative Methods

  • Time Value of Money
  • Probability Distributions and Concepts
  • Sampling and Estimation
  • Regression Analysis
  • Artificial Intelligence/Machine Learning and Big Data Analysis and Applications
  • Time-Series Analysis
  • Back-testing, Simulation, and Scenario Analysis

Exploring about quantitative concepts and techniques used in financial analysis; investment decision making

Economics

  • Market Forces of Supply and Demand
  • The Firm and Industry Organization
  • Business Cycles
  • Inflation and Deflation
  • International Trade and Capital Flows
  • Currency Exchange Rates
  • Monetary System, Monetary and Fiscal Policy
  • Economic Growth and Development
  • Effects of Regulations
  • Economic Analysis and Setting Capital Market Expectations
  • Effects of Geopolitics on Economies and Investment Markets
  • Applications of Economic Factors in the Investment Process
  • To analyse the fundamental concepts of supply and demand

  • Understand various market structures, macroeconomic concepts and principles

Portfolio Management and Wealth Planning

  • The Investment Policy Statement
  • Modern Portfolio Management Concepts
  • Investment Vehicles (including ETFs and Mutual Funds)
  • Market Efficiency and Passive Investing
  • Market Indexes
  • Behavioral Finance
  • Environmental, Social, and Governance (ESG) Investing
  • Management of Individual/Family Investor Portfolios
  • Tax Impact of Investment Decisions
  • Management of Institutional Investor Portfolios
  • Investment Manager Selection
  • Asset Allocation
  • Portfolio Construction and Revision
  • Currency Management
  • Liability – Driven Investments (including Asset Liability Management and Goal-Based Investing)
  • Risk Management (including environmental risk)
  • Execution of Portfolio Decisions (including Trading and Market Microstructure)
  • Performance Attribution and Appraisal

Learn about the fundamentals of risk and portfolio management

Derivatives

  • Types of Derivative Instruments and Markets
  • Valuation of Forwards and Futures Contracts
  • Valuation of Option Contracts
  • Valuation of Swap Contracts
  • Uses of Derivatives in Portfolio Management
  • Valuation concepts such as swaps, forwards, futures, and contingent claims

  • Conceptual framework related to derivative markets and derivatives

Alternative Investments

  • Types of Alternative Investments
  • Real Estate
  • Real Assets (including Infrastructure, Timber and Farm Land)
  • Private Capital (including Private Equity, Private Credit and Venture Capital)
  • Hedge Funds
  • Commodities
  • Alternative Investments Portfolio Management
  • ESG considerations in Alternative Investments

Know about edge funds, commodities, private equity, real estate, and infrastructure


CFA Subjects and Weights

Topic Area

Level I

Level II

Level III

Ethical And Professional Standards

15%

10-15%

10-15%

Quantitative Methods

10%

5-10%

0

Economics

10%

5-10%

5-10%

Financial Reporting And Analysis

15%

10-15%

0

Corporate Finance

10%

5-10%

0

Equity Investments

11%

10-15%

10-15%

Fixed Income

11%

10-15%

15- 20%

Derivatives

6%

5-10%

5-10%

Alternative Investments

6%

5-10%

5-10%

Portfolio Management

6%

5-15%

35 -40%

Total

100%

100%

100%


Quick Links-
CFA Level 1 Subjects
CFA Level 2 Syllabus
CFA Level 3 Topics

CFA Exam Pattern

Each of the three levels of CFA follows a different pattern. Given below in the table is the detailed exam pattern of the CFA exams.

CFA Exam Pattern - All Levels

Exam

CFA Level I Exam Pattern

CFA Level II Exam Pattern

CFA Level III Exam Pattern

Morning Session

90 Questions

88 Qs in 10 Case studies

Item sets comprised of vignettes with accompanying multiple-choice items and constructed response (essay) questions.



Afternoon Session

90 Questions

88 Qs in 10 Case studies

Duration

2 hours, 15 minutes each session

2 hours and 12 minutes each session

2 hours and 12 minutes each session

Question type

Multiple choice questions

Vignette-supported multiple-choice questions

Vignette-supported-

  • essay questions
  • multiple choice questions

Exam Months

  • February
  • May
  • August
  • November
  • February
  • August
  • November
  • May
  • August

CFA Courses Fees

In order to register for the CFA exam, candidates have to pay different types of fees such as one time enrolment fee during CFA Level 1. They also have to pay the registration fee which is available at a discount in case of early registration. Then there is an exam rescheduling fee if the candidate want to reschedule the test. At present the CFA fee structure is as per the particulars given in the table below.

CFA Course Fees

Particulars

Fees

CFA enrollment fee

USD 350

Early registration fee

USD 940

Standard registration fee

USD 1250

Rescheduling feeUSD 250

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CFA Career Prospects

CFA is becoming one of the most rewarding career choices for finance professionals in India and around the world. The CFA designation is valued by employers for different types of roles and functions in the global sector of finance. Below are the typical jobs available for CFA chartholders.

Portfolio Management: The job of a portfolio manager is to make investment decisions. Portfolio managers devise and implement investment processes and strategies to meet the requirements and goals of the clients. According to the 2019 CFA Institute Compensation Study, portfolio managers enjoy a global total compensation of US$177,000 with US$126,000 as a base salary.

Research Analysts: In the investment industry, there are two types of research roles - credit analysts and equity analysts. The role of both these types of analysts is to collect data about investable companies. Credit analysts' role centers around analyzing bonds and default risks. On the other hand, equity analysts analyze the performance of companies. According to the 2019 CFA Institute Compensation Study, research analysts have reported a global total compensation of US$140,000 with US$100,000 as base salary.

Investment Consultant: The role of investment consultants is to advise their clients on which funds, asset classes, and countries to invest in. Their clients may include asset owners, fund managers, and trustees. In the 2019 CFA Institute Compensation Study, investment consultants reported a global total compensation of US$131,000 with US$106,000 as base annual salary.

Risk Analysts and Risk Managers: Companies hire risk analysts and managers to minimize the likelihood of negative impacts from a variety of factors. These factors may include operational risks like unethical human behavior, natural disasters, financial risks like credit and interest rate risks etc. According to the 2019 CFA Institute Compensation Study, risk analysts and managers reported a global total compensation of US$129,000 with US$105,000 as base salary.

Frequently Asked Question (FAQs)

1. Is CFA higher than CA?

CFA is considered comparitively easier than CA because of its higher pass percentage. 

2. Is CFA better than MBA?

CFA curriculum revolves around finance and investment management. On the other hand, MBA course offers specialisations in different areas such as finance, marketing, HR, operations etc. So, it depends upon the personal preference and learning needs of the candidate. 

3. What is CFA qualification?

The CFA course is a three level programme and a designation given to persons who have completed the three levels by the CFA Institute. The course trains professionals in the field of finance and investment management. Every year thousands of candidates appear for the three levels of the Chartered Financial Analyst course. 

4. Where can I find the study material of CFA exams?

The Institute uploads the study material for CFA exams, level wise on the official website. The CFA study material is downloadable in pdf format. 

5. What is CFA in salary?

CFA could be a rewarding career as investment management professionals are in good demand worldwide.

6. What is CFA course duration after graduation

Taking into consideration the preparation time and work experience requirement , it will take around 3-5 years to complete the CFA course.

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Photography is considered both a science and an art, an artistic means of expression in which the camera replaces the pen. In a career as a photographer, an individual is hired to capture the moments of public and private events, such as press conferences or weddings, or may also work inside a studio, where people go to get their picture clicked. Photography is divided into many streams each generating numerous career opportunities in photography. With the boom in advertising, media, and the fashion industry, photography has emerged as a lucrative and thrilling career option for many Indian youths.

2 Jobs Available
Producer

An individual who is pursuing a career as a producer is responsible for managing the business aspects of production. They are involved in each aspect of production from its inception to deception. Famous movie producers review the script, recommend changes and visualise the story. 

They are responsible for overseeing the finance involved in the project and distributing the film for broadcasting on various platforms. A career as a producer is quite fulfilling as well as exhaustive in terms of playing different roles in order for a production to be successful. Famous movie producers are responsible for hiring creative and technical personnel on contract basis.

2 Jobs Available
Copy Writer

In a career as a copywriter, one has to consult with the client and understand the brief well. A career as a copywriter has a lot to offer to deserving candidates. Several new mediums of advertising are opening therefore making it a lucrative career choice. Students can pursue various copywriter courses such as Journalism, Advertising, Marketing Management. Here, we have discussed how to become a freelance copywriter, copywriter career path, how to become a copywriter in India, and copywriting career outlook. 

5 Jobs Available
Vlogger

In a career as a vlogger, one generally works for himself or herself. However, once an individual has gained viewership there are several brands and companies that approach them for paid collaboration. It is one of those fields where an individual can earn well while following his or her passion. 

Ever since internet costs got reduced the viewership for these types of content has increased on a large scale. Therefore, a career as a vlogger has a lot to offer. If you want to know more about the Vlogger eligibility, roles and responsibilities then continue reading the article. 

3 Jobs Available
Publisher

For publishing books, newspapers, magazines and digital material, editorial and commercial strategies are set by publishers. Individuals in publishing career paths make choices about the markets their businesses will reach and the type of content that their audience will be served. Individuals in book publisher careers collaborate with editorial staff, designers, authors, and freelance contributors who develop and manage the creation of content.

3 Jobs Available
Journalist

Careers in journalism are filled with excitement as well as responsibilities. One cannot afford to miss out on the details. As it is the small details that provide insights into a story. Depending on those insights a journalist goes about writing a news article. A journalism career can be stressful at times but if you are someone who is passionate about it then it is the right choice for you. If you want to know more about the media field and journalist career then continue reading this article.

3 Jobs Available
Editor

Individuals in the editor career path is an unsung hero of the news industry who polishes the language of the news stories provided by stringers, reporters, copywriters and content writers and also news agencies. Individuals who opt for a career as an editor make it more persuasive, concise and clear for readers. In this article, we will discuss the details of the editor's career path such as how to become an editor in India, editor salary in India and editor skills and qualities.

3 Jobs Available
Reporter

Individuals who opt for a career as a reporter may often be at work on national holidays and festivities. He or she pitches various story ideas and covers news stories in risky situations. Students can pursue a BMC (Bachelor of Mass Communication), B.M.M. (Bachelor of Mass Media), or MAJMC (MA in Journalism and Mass Communication) to become a reporter. While we sit at home reporters travel to locations to collect information that carries a news value.  

2 Jobs Available
Corporate Executive

Are you searching for a Corporate Executive job description? A Corporate Executive role comes with administrative duties. He or she provides support to the leadership of the organisation. A Corporate Executive fulfils the business purpose and ensures its financial stability. In this article, we are going to discuss how to become corporate executive.

2 Jobs Available
Multimedia Specialist

A multimedia specialist is a media professional who creates, audio, videos, graphic image files, computer animations for multimedia applications. He or she is responsible for planning, producing, and maintaining websites and applications. 

2 Jobs Available
Welding Engineer

Welding Engineer Job Description: A Welding Engineer work involves managing welding projects and supervising welding teams. He or she is responsible for reviewing welding procedures, processes and documentation. A career as Welding Engineer involves conducting failure analyses and causes on welding issues. 

5 Jobs Available
QA Manager
4 Jobs Available
Quality Controller

A quality controller plays a crucial role in an organisation. He or she is responsible for performing quality checks on manufactured products. He or she identifies the defects in a product and rejects the product. 

A quality controller records detailed information about products with defects and sends it to the supervisor or plant manager to take necessary actions to improve the production process.

3 Jobs Available
Production Manager
3 Jobs Available
Product Manager

A Product Manager is a professional responsible for product planning and marketing. He or she manages the product throughout the Product Life Cycle, gathering and prioritising the product. A product manager job description includes defining the product vision and working closely with team members of other departments to deliver winning products.  

3 Jobs Available
QA Lead

A QA Lead is in charge of the QA Team. The role of QA Lead comes with the responsibility of assessing services and products in order to determine that he or she meets the quality standards. He or she develops, implements and manages test plans. 

2 Jobs Available
Structural Engineer

A Structural Engineer designs buildings, bridges, and other related structures. He or she analyzes the structures and makes sure the structures are strong enough to be used by the people. A career as a Structural Engineer requires working in the construction process. It comes under the civil engineering discipline. A Structure Engineer creates structural models with the help of computer-aided design software. 

2 Jobs Available
Process Development Engineer

The Process Development Engineers design, implement, manufacture, mine, and other production systems using technical knowledge and expertise in the industry. They use computer modeling software to test technologies and machinery. An individual who is opting career as Process Development Engineer is responsible for developing cost-effective and efficient processes. They also monitor the production process and ensure it functions smoothly and efficiently.

2 Jobs Available
QA Manager
4 Jobs Available
AWS Solution Architect

An AWS Solution Architect is someone who specializes in developing and implementing cloud computing systems. He or she has a good understanding of the various aspects of cloud computing and can confidently deploy and manage their systems. He or she troubleshoots the issues and evaluates the risk from the third party. 

4 Jobs Available
Azure Administrator

An Azure Administrator is a professional responsible for implementing, monitoring, and maintaining Azure Solutions. He or she manages cloud infrastructure service instances and various cloud servers as well as sets up public and private cloud systems. 

4 Jobs Available
Computer Programmer

Careers in computer programming primarily refer to the systematic act of writing code and moreover include wider computer science areas. The word 'programmer' or 'coder' has entered into practice with the growing number of newly self-taught tech enthusiasts. Computer programming careers involve the use of designs created by software developers and engineers and transforming them into commands that can be implemented by computers. These commands result in regular usage of social media sites, word-processing applications and browsers.

3 Jobs Available
Product Manager

A Product Manager is a professional responsible for product planning and marketing. He or she manages the product throughout the Product Life Cycle, gathering and prioritising the product. A product manager job description includes defining the product vision and working closely with team members of other departments to deliver winning products.  

3 Jobs Available
Information Security Manager

Individuals in the information security manager career path involves in overseeing and controlling all aspects of computer security. The IT security manager job description includes planning and carrying out security measures to protect the business data and information from corruption, theft, unauthorised access, and deliberate attack 

3 Jobs Available
ITSM Manager
3 Jobs Available
Automation Test Engineer

An Automation Test Engineer job involves executing automated test scripts. He or she identifies the project’s problems and troubleshoots them. The role involves documenting the defect using management tools. He or she works with the application team in order to resolve any issues arising during the testing process. 

2 Jobs Available
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