CFA Level 1 Syllabus & Subjects 2024 - Important Topic, Weightage, Exam Pattern

Ethical and Professional Standards

• Professional Standards of Practice
• Ethical Practices
• Presentation of Performance Results (GIPS)
• Asset Manager Code of Professional Conduct

• Help students understand ethics and related challenges to ethical behavior.

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

Quantitative Methods

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

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

Economics

• Market Forces of Supply and Demand
• Business Cycles
• The Firm and Industry Organization
• International Trade and Capital Flows
• Monetary System, Monetary and Fiscal Policy
• Effects of Regulations
• Inflation and Deflation
• Currency Exchange Rates
• Economic Growth and Development
• 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

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

• Aims to provide thorough explanation of financial reporting procedures

• Understand the standards that govern the financial reporting disclosures

Corporate Issuers/ Finance

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

• Introduction to corporate governance

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

Equity Investments

• Types of Equity Securities and Markets
• Valuation of Individual Equity Securities
• Fundamental Equity Analysis
• Equity Portfolio Management
• Equity Market Valuation
• 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
• Term Structure Determination and Yield Spreads
• Fundamental Fixed Income
• Analysis of Interest Rate Risk
• Valuing Bonds with Embedded Options
• Fixed Income Portfolio Management Strategies
• Valuation of Individual Fixed Income Securities
• Analysis of Credit Risk
• Structured Products
• 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.

Derivatives

• Types of Derivative Instruments and Markets
• Valuation of Option Contracts
• Valuation of Forwards and Futures Contracts
• Uses of Derivatives in Portfolio Management
• Valuation of Swap Contracts

• Valuation concepts such as forwards, futures, swaps, and contingent claims

• Learn about the conceptual framework related to derivatives and derivative markets

Alternative Investments

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

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

Portfolio Management and Wealth Planning

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

Learn about the fundamentals of portfolio and risk management

Ethical and Professional Standards

15-20%

Financial Reporting and Analysis

13-17%

Equity Investments

10-12%

Fixed Income

10-12%

Corporate Issuers/ Finance

8-12%

Quantitative Methods

8-12%

Economics

8-12%

Portfolio Management

5-8%

Derivatives

5-8%

Alternative Investments

5-8%