CFA: Full Form, Admission 2024, Fees, Syllabus, Entrance Exam, Top Colleges, Career Scope

CFA was earlier known as the Association for Investment Management and Research, CFA Institute (AIMR). Through its tests and certifications, the CFA Institute ensures that there are financial experts who have a high standard of excellence. The CFA Institute offers an Investment Foundations Program and a Certificate in Investment Performance Measurement.

The CFA curriculum comprises both academic theory topics, as well as, field practice which can be obtained via relevant work experience. The CFA course helps candidates gain knowledge on investing and making money in the stock market, industries, companies, and also at an individual level. 

CFA full form in Commerce is Chartered Financial  Analyst a programme that equips students to be successful and moral working professionals. The CFA curriculum contains chapters on finance and related topics including Economics, Financial Report Analysis, Private Equity, Derivatives, Alternative Investment opportunities, Portfolio Management, Wealth Planning, and so on.

After passing the CFA exam for three-course levels, one is designated a CFA or Chartered Financial Analyst. The fees of the CFA course vary from INR 11,000 to INR 3.5 lakh.

The US-based CFA Institute, formerly the Association for Investment Management and Research, or AIMR, offers postgraduate professional certification to investment and financial professionals worldwide through the Chartered Financial Analyst (CFA) program. The program offers a generalist understanding of various areas of finance in addition to teaching a wide range of subjects related to advanced investment analysis, such as business analysis, statistics, probability theory, fixed income, derivatives, economics, financial analysis, corporate finance, alternative investments, and portfolio management.

Those who hold a charter as a Chartered Financial Analyst (CFA) can use their expertise in a variety of roles across the international finance sector. Prominent for their dedication to elevating the bar for excellence, they are in high demand as experts in investment management.

CFA full form is Chartered Financial Analyst. It's a professional certification program that teaches students about investment analysis and other areas of finance. The CFA program is offered by the CFA Institute, a US-based organization. The CFA program is designed to:

• Provide students with the skills and knowledge to advance their careers,
• Demonstrate a candidate's skills and knowledge,
• Prepare students for today's market.

The Chartered Financial Analyst (CFA) program is quite easier than the Chartered Accountancy (CA) program. While both programs are demanding and difficult, the CA program calls for more focus, dedication, and experience than the CFA program. Completing the CFA program requires at least two years of study. With an average passing percentage of 0.5%, CA is regarded as the hardest course in the world. When compared to CA, the passing percentage for CFA is substantially higher. It appears that the pass rate is 10% on average.

Holding a bachelor's degree (or its equivalent), enrolling in their final year of college, having four years of relevant professional work experience, or four years of combined work and college experience, fulfills the admission requirements for professional conduct.

Mathematics is covered in some of the Chartered Financial Analyst course material. The positive aspect is that most of these concepts just require basic math with an understanding of statistics and algebra. Therefore, you need to have your calculator ready before you appear for your CFA exams.

The answer to this question is a yes. You can pursue a CFA in the last year of your graduation, however, it is not possible to take the CFA course right after the 12th. The minimum eligibility for CFA is an undergraduate qualification or bachelor's degree from a renowned university.

Follow the steps mentioned below to learn how to fill out the CFA application form

• Visit the official website of the CFA institute
• Click on the application link or copy https://login.cfainstitute.org/LoginApplication.
• Create a login account with the candidate’s email ID.
• The candidate will be asked to enter their name, email ID, and password, and enter a security question.
• After they’ve created an account, they can log in and fill up the form.
• They can pay the enrollment fee online through Credit cards: American Express, Diner’s Club, Discover, JCB,  MasterCard, UnionPay, or Visa
• The CFA registration fee can also be paid offline through wire transfer, ACH, check money or postal orders. Receipt of payment of the fees will be emailed to the candidates.

First, there is an educational benefit; you will learn a great deal and add a great credential to your CV. Then, there is a boost to your reputation. People in the business know the time and dedication it takes to earn the charter. When they see you have earned it, they will likely believe you have the ability, dedication, ethical grounding, and analytical skills necessary to do the job in question.

There also may be financial benefits. You may see your salary increase after you've become a CFA or you may surpass other applicants who don't have this designation when competing for a new job.

The operative word here is "may." Hard work, skill, luck, dedication, political savvy, and character have just as much to do with one's success in the investment profession as education, so don't view the charter as your golden ticket to financial paradise.

The CFA Institute is a global, not-for-profit professional organization that provides investment professionals with finance education. Here are its main features:

• Education: The CFA Institute offers educational programs, including a digital learning platform with study tools, practice questions, and mock exams. 
• Certification: Offers certification programs, including the Chartered Financial Analyst (CFA) designation, which is considered the gold standard in investment analysis. 
• Ethics: Provides a code of ethics for investment professionals. 
• Research: Publishes the Financial Analysts Journal, a peer-reviewed quarterly journal, and the Enterprising Investor blog.

The Level 3 CFA Exam is considered by many CFA charterholders as the most challenging due to the amount of time and consideration required to successfully complete the constructed responses. Only about 56% of CFA candidates pass the exam, despite the fact that the Level 3 CFA Exam typically has the highest pass rates of any CFA Exam.

There is no fixed time limit on the validity of the CFA Registration. Candidates will get access to the digital curriculum once your registration is complete. It is refundable within 14 days of payment. Candidates who wish to appear for the CFA exam, can register on the official website of CFA institute by filling up the registration form. The candidates must note that there is no option of offline form filling hence, they must apply online.

There is no specific age limit for candidates who wish to take the CFA exams. The CFA Institute, which administers the CFA Program, does not impose age restrictions on candidates. The CFA Program is open to individuals from a wide range of educational and professional backgrounds, and candidates can pursue the CFA charter at any age, provided they meet the educational and work experience requirements.

However, it's important to note that to become a CFA charterholder, candidates must meet the following minimum eligibility criteria, which do not include an age requirement:

• Candidates must have a bachelor's degree from an accredited institution or be in the final year of their bachelor's degree.
• Candidates must have four years of qualified work experience in the investment decision-making process. This experience can be obtained before, during, or after taking the CFA exams.
• Candidates must agree to adhere to the CFA Institute's ethical and professional standards.

CFA Charter Holders have the distinct advantage of applying their skills in several professional roles. They can work in areas like wealth management, hedge funds, fixed income, insurance and equity research.

The CFA Level I exam covers a broad range of topics. Here are the major subject areas included in the Level I syllabus:

1. Ethical and Professional Standards: This section emphasizes the ethical and professional responsibilities of investment professionals, including the CFA Institute's Code of Ethics and Standards of Professional Conduct.

2. Quantitative Methods: This area focuses on quantitative techniques and methods used in investment analysis, including statistical concepts, probability theory, time value of money, and basic regression analysis.

3. Economics: The economics section covers microeconomics and macroeconomics, including supply and demand analysis, market structures, monetary and fiscal policy, and international trade.

4. Financial Reporting and Analysis: This section explores the principles and analysis of financial reporting, including the interpretation of financial statements, financial ratio analysis, and understanding key accounting concepts.

5. Corporate Finance: This area covers topics related to corporate finance, including capital budgeting, cost of capital, capital structure, dividend policy, and corporate governance.

6. Equity Investments: The equity investments section focuses on equity markets, equity valuation models, industry and company analysis, and equity portfolio management.

7. Fixed Income: This section delves into fixed income securities, bond valuation, yield measures, fixed income markets, and fixed income portfolio management.

8. Derivatives: This area covers derivatives instruments, including options, futures, forwards, and swaps, along with their valuation and strategies for their use.

9. Alternative Investments: This section introduces alternative investment types, such as real estate, private equity, hedge funds, and commodities, along with their characteristics and valuation.

10. Portfolio Management and Wealth Planning: This final section addresses portfolio management concepts, including portfolio theory, risk management, performance evaluation, and wealth planning strategies.

These topics provide a general overview of the major subject areas covered in the CFA Level I syllabus. Each subject area encompasses various subtopics, and the CFA Institute provides a detailed curriculum that outlines the specific learning outcomes for each level. It's essential to refer to the official CFA Institute curriculum and study materials for a comprehensive understanding of the exam content.

The major subjects of CFA include Ethical and professional Standards, Quantitative Methods, Economics, Financial Reporting and Analysis, Corporate Finance, Equity Investments, Portfolio Management, Alternative Investments, Derivative, and Fixed Income.

The CFA Program enables candidates to customize their preparation to match their individual needs and circumstances. Following are some numbers to consider in planning a study strategy for the CFA Level II exam.

• Successful candidates report studying on average over 300 hours for each level of the CFA Exam.
• About half of the successful candidates passing the LIII exam passed each exam on the first attempt (i.e. sat a total of three exams) while about a quarter sat a total of four exams.

Here are some practical tips to help you perform your best on the CFA exam.

• Financial Statement Analysis: Questions on this topic are based on International Financial Reporting Standards (IFRS) unless otherwise noted. If a question references U.S. GAAP, this will be explicitly stated.
• No penalty for guessing: There is no penalty for incorrect answers, so be sure to answer every question.
• Know your calculator: Ensure you’re comfortable with the calculator features needed to address the Learning Outcome Statements (LOS). Familiarity with your calculator will save valuable time during the exam.
• Dress for comfort: There’s no official dress code, but dressing in layers will allow you to adjust to the room temperature and remain comfortable during the exam.
• Exam hardware and software: Make sure you’re aware of how hardware and software at test centres might affect your experience. 
• Practice: Take a mock exam in the Learning Ecosystem to practice answering exam questions.

The average CFA fee in India ranges between INR 11,000 to INR 3.5 Lakh. There are around 52 CFA institutions in India. Among them, Financial Planning Academy, IMS Pro School, etc., are some best options.

It is estimated that joining CFA colleges in India can be affordable as most of the colleges have a total tuition fee of less than INR 1 lakh. Listed below are some of the colleges along with their total tuition fees:

One of the most well-known financial courses in India is CFA, which leads to positions as a Corporate Financial Analyst, Investment Banking Analyst, Risk Manager, Portfolio Manager, and Research Analyst. The skills that these professionals possess are in greater demand.

The average salary of a Chartered Financial Analyst is INR 4 LPA in India. With relevant experience and skills, you can get higher positions and hikes in your salary package.

In India, CFAs earn better than CAs as average salary for CAs is INR 7 to 15 LPA, while for CFAs it is INR 9 to 40 LPA. However, it can vary based on the location, experience and designation.   

Some of the highest paid CFAs are as follows:

• Junior Analyst: INR 6 Lacs to INR 10 Lacs per year
• Chief Investment Officer: INR 40 Lacs to INR 1 crore+ per year
• Investment Banker: INR 10 Lacs to INR 30 Lacs per year
• Portfolio Manager: INR 18 Lacs to INR 40 Lacs per year

Choosing between a CFA and an MBA for investment banking depends on your individual goals and desired career trajectory. Here's a breakdown to help you decide:

• Choose CFA if: You have a strong quantitative background,  prefer technical analysis,  and want a specialised career path in investment analysis or portfolio management.
• Choose MBA if: You value broader business knowledge,  leadership skills,  and networking opportunities,  and aspire to diverse roles in investment banking or other finance sectors.

The table below shows the various specializations offered by the best CFA colleges in India along with their number of colleges:

Candidates can prepare for the CFA 2023 certification course by reading many reference materials mentioned below-

Note- The information is sourced from external sites and may vary.