GMAT™ Exam
Select test center appointment | Scores valid for 5 Years | Multiple Attempts | Round 2 Closing Soon
CFA Level 3 Syllabus 2024: Subjects-wise Topic, Curriculum - Download PDF
Edited By Sansar Singh Chhikara | Updated on Dec 22, 2023 11:58 AM IST | #CFA Exam
Institute of Chartered Financial Analyst has prescribed the syllabus for CFA exam level 3. Aspirants can access the CFA level 3 syllabus 2024 from the official website - cfainstitute.org. Candidates eligible to appear in CFA level 3 exam are advised to go through the exam pattern, important topics and the weight given to each topic.
Also Check: CFA Level 1, 2 & 3 Registration Open - Apply Now
Latest: CFA complete guide
This Story also Contains
The CFA Level 3 exam is conducted twice a year, in the months of February and August. It is the final level in the CFA exam and some of the subjects present in the earlier levels are absent from the CFA Level 3 syllabus due to zero weight. Read the full article to know more about the CFA Level III syllabus, pattern, topics and more.
CFA Level 3 Exam Pattern 2024
The CFA institute officially prescribes the CFA level 3 exam pattern such as exam duration, type of questions asked, exam language, and marking scheme. The CFA level III exam consists of item sets consisting of vignettes with accompanying multiple-choice items and constructed response (essay) questions.
Exam pattern of CFA level 3
Particulars | Details |
Medium of exam | English |
type of questions | Vignette-supported
|
Duration of exam | 4 hours and 24 minutes |
Marking scheme |
|
Mode of exam | Computer-based |
CFA Level 3 Syllabus 2024
The CFA Institute provides syllabus of CFA level III exam and the list of important topics on its official website. The official curriculum of CFA level 3 covers complete details related to the CFA Level 3 topics, sub-topics covered as well as the weightage carried by each topic.
CFA Level 3 Subject Weightage
| CFA level 3 topics | Weightage |
| Economics | 5–10% |
| Portfolio Management | 35–40% |
| Derivatives | 5–10% |
| Fixed Income | 15–20% |
| Equity Investments | 10–15% |
| Alternative Investments | 5–10% |
| Ethical and Professional Standards | 10–15% |
| Quantitative Methods | 0% |
| Financial Reporting and Analysis | 0% |
| Corporate Issuers and Finance | 0% |
Detailed CFA Level 3 Syllabus
Candidates must go through the entire syllabus of CFA level 3 before starting the preparation. Following listed are the topics covered under each subject of CFA level 3:
Portfolio management and wealth planning
Portfolio management and wealth planning covers 35%-40% of the entire syllabus of CFA level 3 exam. Behavioural finance, private wealth and institutional topics covers 15%-25% and asset allocation, trading, performance evaluation covers 10%-20% of the entire topic. The sub-topic of portfolio management and wealth planning are:
The investment policy statement
Modern portfolio management concepts
Investment vehicles (including etfs and mutual funds)
Market efficiency and passive investing
Market indexes
Behavioural finance
Technical analysis
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
Fixed income
Finance income subject covers 15 to 20% of the CFA level 3 syllabus. The sub topics of fixed income are:
Types of fixed-income securities and markets
Fundamental fixed income analysis
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
Ethical and professional standards
Ethical and professional standards subject covers 10 to 15% of the entire syllabus of CFA level. The subtopics of Ethical and professional standards are:
Professional standards of practice
Ethical practices
Asset manager code of professional conduct
Presentation of performance results (GIPS)
Equity investments
Equity investment subject covers 10 to 15% of the CFA level 3 syllabus. The subtopics of equity investments are:
Types of equity securities and markets
Fundamental equity analysis
Valuation of individual equity securities
Equity market valuation
Equity portfolio management
Economics
Economics subject of CFA level 3 covers around 5 to 10% of the complete syllabus of CFA level 3. The importance of economics are:
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 indicators in the investment process
Derivatives
Derivatives subject comprise 5 to 10% of the entire CFA level 2 syllabus. Important topics of derivatives are as under:
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
Alternative Investments
Alternative investments subject covers the 5 to 10% of the CFA level 3 syllabus. The important topics of alternative investment are:
Types of alternative investments
Real estate
Real assets (including infrastructure, timber and farmland)
Private capital (including private equity, private credit and venture capital)
Hedge funds
Commodities
Alternative investments portfolio management
CFA Level 3 Exam Question Format
According to CFA Level 3 paper pattern, item sets and constructed response (essay) sets will be mixed within each of the two exam sessions, so each session will have either 6 item sets and 5 essay sets or 5 item sets and 6 essay sets.
Constructed response (essay) format
The first session will be vignette-supported essay sets that have items with three different methods of entering a response: essay, numerical entry, multiple choice. Each essay set will have a variable number of items, and each one is worth a variable-number points. There may be multiple questions within one essay item.
Item set format
The second session of the CFA Level 3 exam consists of 44 multiple choice items, each worth 3 points. Each item set on the CFA exam consists of a vignette followed by 4 multiple-choice questions.
Example Level 3 Exam Questions - Level 3 item set questions (PDF)
CFA Level 3 Preparation Tips
For the preparatory purpose, candidates should refer to the level 3 past question papers of CFA level 3 exam, attempt some CFA level 3 sample papers and mock tests to get a grasp on the topics covered. CFA level 3 question paper also has essay questions, hence knowledge on how to solve the essay questions is equally important along with solving MCQs.
CFA Level 3 exam tips
Exam questions referring to Financial Statement Analysis are based on International Financial Reporting Standards (IFRS) unless otherwise specified. When a question is based on US GAAP, it will be stated in the question.
Be comfortable with your calculator. Make sure you know how to use the calculator features needed to address the learning outcome statements (LOS).
Answer all questions. There is no penalty for incorrect answers.
Dress comfortably. There is no dress code, but dress in layers for comfort.
Take a mock exam to practice answering exam questions. This experience is designed to mimic the actual exam-day.
Learn how hardware/software at the test centres may impact your exam-day experience.
Review the CFA exam calendar for key dates and to meet pre-exam deadlines.
CFA Level 3 Study Material
The CFA Institute also releases study material for CFA Level 3 so that candidates can prepare for the exams in a bettern manner. Students preparing for the exam must thoroughly go through the CFA Level 3 official curriculum given by the CFA institute. The CFA institute has released the 2024 exam curriculum of CFA Level 3 too. Apart from the curriculum, candidates can refer to the CFA Level 3 Learning Ecosystem to access study resources. Students can also take help of CFA practice questions, mock exams, practice packs and more for their CFA Level 3 preparation. Here is a list of CFA Level 3 study resources available for preparation:
- CFA mock exams
- CFA practice questions
- CFA official curriculum
- CFA Practice Pack (additional purchase required)
- CFA approved prep providers
- CFA learning ecosystem
Frequently Asked Questions (FAQs)
1. What are the subjects in CFA level 3?
The subjects covered in level 3 of CFA exam are portfolio management and wealth planning, fixed income, ethical and professional standards, equity investments, economics, derivatives and alternative investments.
2. Is 4 Months enough for CFA Level 3?
Aspirants must start preparing for the CFA level 3 exam well in advance as the exam is tougher than the CFA level 2.
3. Is CFA Level 3 MCQ based?
In CFA level 3 exam, item sets and constructed response (essay) sets will be mixed within each of the two exam sessions, so each session will have either 6 item sets and 5 essay sets or 5 item sets and 6 essay sets.
4. What is CFA Level 3 passing rate?
The overall CFA level 3 pass rate is 52% since the last ten years.
5. Is CFA level 3 easier than level 2?
CFA level 3 is tougher than the CFA level 2 exam. Candidates must plan well in advance and stick to the study schedule to clear the exam.
6. How many questions in CFA Level 3?
The CFA Level 3 will have 8 to 10 vignette-supported essay sets in the morning session and 44 vignette-supported multiple-choice questions in the afternoon session.
7. What is the hardest topic in CFA Level 3?
Some of the hardest topics in CFA Level 3 are are Fixed Income, Ethics, Equity Investments, Alternative Investments and Derivatives.
8. What is the paper pattern of CFA Level 3?
The CFA Level 3 exam basically consists of a vignette followed by 4 multiple-choice questions.
Articles
Certifications By Top Providers
Accounting with Tally ERP9
Via NIIT Management of Commercial Banking
Via Indian Institute of Technology Kharagpur Digital Banking Business Model
Via State Bank of India Direct Tax Laws and Practice
Via Tezpur University, Tezpur Foundations of Modern Finance I
Via Massachusetts Institute of Technology, Cambridge Banking 101 A Guide for Beginners in the Banking Sector
Via EduBridge Explore Top Universities Across Globe
University of Essex, Colchester
Wivenhoe Park Colchester CO4 3SQUniversity College London, London
Gower Street, London, WC1E 6BTThe University of Edinburgh, Edinburgh
Old College, South Bridge, Edinburgh, Post Code EH8 9YLUniversity of Bristol, Bristol
Beacon House, Queens Road, Bristol, BS8 1QUUniversity of Delaware, Newark
Newark, DE 19716University of Nottingham, Nottingham
University Park, Nottingham NG7 2RDHow to Apply for PhD After Bachelors?
6 min ⋆ Apr 25, 2024 09:04 AM ISTGMAT Preparation Tips 2024: Section Wise Preparation Plan, Study Material & Best Books
12 min ⋆ Oct 10, 2024 05:10 AM ISTPR in UK for International and Indian Students 2024: After Study
6 min ⋆ Jul 30, 2024 12:07 PM ISTAdmission Intakes in Australia for International Students 2025
7 min ⋆ Oct 10, 2024 05:10 AM ISTStudy in Ireland Without IELTS 2024: Universities List, Process, Eligibility
12 min ⋆ Aug 01, 2024 10:08 AM ISTCanada vs India: Which is Better for Indian Students?
11 min ⋆ Oct 10, 2024 05:10 AM ISTPopular Courses and Specializations
Have a question related to CFA Exam ?
Explore Career Options (By Industry)
Budget Analyst
Budget analysis, in a nutshell, entails thoroughly analyzing the details of a financial budget. The budget analysis aims to better understand and manage revenue. Budget analysts assist in the achievement of financial targets, the preservation of profitability, and the pursuit of long-term growth for a business. Budget analysts generally have a bachelor's degree in accounting, finance, economics, or a closely related field. Knowledge of Financial Management is of prime importance in this career.
4 Jobs Available
Data Analyst
The invention of the database has given fresh breath to the people involved in the data analytics career path. Analysis refers to splitting up a whole into its individual components for individual analysis. Data analysis is a method through which raw data are processed and transformed into information that would be beneficial for user strategic thinking.
Data are collected and examined to respond to questions, evaluate hypotheses or contradict theories. It is a tool for analyzing, transforming, modeling, and arranging data with useful knowledge, to assist in decision-making and methods, encompassing various strategies, and is used in different fields of business, research, and social science.
3 Jobs Available
Underwriter
An underwrite plays crucial roles in the finance and insurance industry and works for mortgage, loan, and insurance companies. He or she analyses applications for insurance policies and assess the risk capacity to decide whether to approve application or reject. He or she assesses and evaluates the risk of another party for a fee in the form of commision or premium.
Underwriters have strong analytical skills and they understand the insurance principle to evaluate the health of potential clients. They collaborate with agents, brokers, and to their clients to collect information and explain the insurance product details. They work on all kinds of insurance like mortgage, health insurance, life insurance, automobile, and several other kinds of insurance.
3 Jobs Available
Finance Executive
Finance Executives manage money, overseeing a company's income, expenses, and investments. They monitor financial transactions, create and assess reports like cash flows, and strategies to enhance profit margins and reduce expenses. Their role is crucial for staying competitive and making wise market decisions in response to current dynamics.
Finance Executives establish strategic financial goals, objectives, and performance criteria. Strong accounting and analytical skills are fundamental to this role. While often working fixed hours, they may extend their work hours to meet deadlines. This career is well-suited for individuals with a keen understanding of finance, attention to detail, and the ability to navigate complex financial landscapes.
3 Jobs Available
Product Manager
A product manager is a professional who determines what a product should do and how it should look like. A product manager analyses customer needs and combines them with company goals to develop a product that satisfies everyone. He or she works in coordination with different departments like engineers, salespersons, and product designers to ensure everyone works towards achieving the company's goals.
A product manager develops strategies and plans to help the employees work towards a common goal that is to develop a product that the customers demand. He or she plays the role of the first point of contact in the organisation for anyone who needs to know about the product. Concerning larger programmes, they work with Technical Program Managers to deliver results.
3 Jobs Available
Operations Manager
Operations manager is tasked with supervising the financial and business experts involved in the production of goods and services. A career as operations manager needs to supervise many divisions and coordinate daily activities. The role of operations manager is to oversee and manage diverse activities which is part of a profession as an operations manager.
All levels of an organisation's operational activities are overseen by an operations manager. He or she is in charge of selecting candidates, imparting instruction, and managing quality control programmes. Operations managers also develop plans for process improvements to ensure that everyone finishes their work on schedule. He or she must regularly evaluate budgets, manage costs, and analyse data and statistics.
3 Jobs Available
Stock Analyst
A stock analyst is an individual who analyses and evaluates various stocks and securities in the financial market. He or she in the stock analyst career forecasts stock market results, normally with an emphasis on the securities that a company or firm invests in. He or she also prepares scientific reports on financial forecasts, predictions, and recommendations based on a stock's expected profit.
Individuals who enjoy learning and data processing, are good problem solvers, and have a strong work ethic will excel in the stock market analyst sector. Students can pursue a BBA (Bachelor of Business Administration), MBA (Master of Business Administration), M.Stat (Master of Statistics) to opt for a career in stock market analysis
2 Jobs Available
Researcher
A Researcher is a professional who is responsible for collecting data and information by reviewing the literature and conducting experiments and surveys. He or she uses various methodological processes to provide accurate data and information that is utilised by academicians and other industry professionals. Here, we will discuss what is a researcher, the researcher's salary, types of researchers.
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
A Quality Assurance (QA) Manager, synonymous with a Quality Assurance Manager, holds a pivotal role in ensuring products meet predefined standards. Responsible for planning, directing, and formulating control policies, the QA Manager safeguards company efficiency and profitability. By scrutinizing products for flaws and ensuring compliance with internal and external requirements, they uphold quality, validating the effectiveness of quality assurance teams in maintaining high standards before product release.
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
A Production Manager oversees manufacturing processes, ensuring timely and budgeted delivery of products. Responsible for safe, cost-effective production meeting quality standards, their role adapts to the production system. Also known as an Operations Manager, they manage human and material resources, contributing to efficient production and service delivery.
3 Jobs Available
Product Manager
A product manager is a professional who determines what a product should do and how it should look like. A product manager analyses customer needs and combines them with company goals to develop a product that satisfies everyone. He or she works in coordination with different departments like engineers, salespersons, and product designers to ensure everyone works towards achieving the company's goals.
A product manager develops strategies and plans to help the employees work towards a common goal that is to develop a product that the customers demand. He or she plays the role of the first point of contact in the organisation for anyone who needs to know about the product. Concerning larger programmes, they work with Technical Program Managers to deliver results.
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
Stay up-to date with CFA Exam News
Back to top