Certified Financial Analyst (CFA)

Find out about the much coveted CFA charter

What can this charter achieve for you?

CFA charter is recognized globally.

Many multinational banks, funds and institutions prefer CFAs for investment and research functions.

It is known for being a rigorous and extensive course.

Which institute/body conducts the test?

The CFA institute conducts the test. The institute is a global, not for profit organization. It’s an association of investment professionals from around the world. The CFA institute was earlier known as AIMR.

How can you register for this test?

You can register for the test through the CFA website. You need to be a graduate to be able to register. No other physical document is required. You can appear for Level-I exam in December and June. You can however take the Level-II and -III exam in June only.

What is the study material all about?

CFA has three levels. Level-I focus on basics of financial products, ethics, and quantitative mathematics. Level-II is all about application of quantitative mathematics, valuation of financial products. Level-III focuses on portfolio management and behavioral finance.

What should you look out for?

The institute recommends at least 300 hours of study for every level. It is very important to clear the ethics subject as the institute values it highly. There is no fixed passing percentage. Cut off is decided by the institute every year. You need to pass all three levels and have relevant experience of a minimum four years to earn the charter of a Chartered Financial Analyst.

What is the test pattern?

Level-I consists of two sets of 120 multiple choice questions to be answered in 3 hours each. Both the sets have to be taken on the same day.

Level-II comprises two sets. Each set has ten case studies with six multiple choice questions each.

Level-III too has two sets. First set consists of ten case studies with six multiple choice questions each. Second set is an essay type questions.

What do you need to do to clear the test?

You need to put in 2-3 months to be able to clear level-I. Level-II is tougher and requires about six months of preparation. Level-III too needs about six to seven months of preparation.

Where are the tests conducted?

In India, they are conducted in four cities: Mumbai, Delhi, Chennai and Kolkata. These centers are not fixed and change from year to year.

Some key facts about the Exam
No of questions	Level-I: 240 Level-II: 20 case studies Level-III: 10 case studies and essay questions
Maximum Marks	360 points
Duration	Six hours for all levels
Certificate Validity	There is no expiry
Passing Score	There is percentile system
Test Fees	Level-I: $ 1,035 Level-II: $ 630 Level-III: $630 You get a discount if you pay the fees earlier
Website URL	https://www.cfainstitute.org
Difficulty Level	Tough