CFA Exam Syllabus

In the latest update regarding the evolution of the CFA Program, significant structural changes have been implemented in the CFA Level 1 curriculum for 2024. The traditional Readings have undergone a complete transformation into interactive Learning Modules, enhancing the overall accessibility and comprehensibility of the curriculum. The CFA Level 1 exam now comprises 93 Learning Modules, marking a notable increase from the 73 readings included in the 2023 curriculum. Portfolio Management, Derivatives, and Ethics have undergone minimal alterations, maintaining a largely unchanged format. Several subjects have been subjected to further granularity in the form of additional Learning Modules, including Fixed Income, Quantitative Methods, and Alternative Investments. Conversely, certain topics such as Economics, Corporate Issuers, Financial Statement Analysis, and Equity have been either consolidated or refreshed to streamline and enhance their presentation in the curriculum.

The ideas from the academic fields of finance and investing make up the CFA syllabus. All three CFA levels—Levels I, II, and III—have the identical material, but the questions at each level have different weights. There is greater topic integration in a single question on Level III of the CFA test. Because the Level III test includes a constructed answer portion, it is more difficult than the Level II exam. CFA Level III syllabus includeBehavioral FinanceCapital Market ExpectationsAsset Allocation & Related Decisions in Portfolio ManagementDerivatives & Currency ManagementFixed-Income Portfolio ManagementEquity Portfolio ManagementAlternative Investments for PMPrivate Wealth ManagementPM- Institutional Trading, Performance Evaluation, and Manager SelectionCases in Portfolio Management and Risk ManagementEthics and Related Topics

The CFA exam is known to be tough, and passing it requires a serious commitment to following a structured study plan. According to the CFA Institute, the average annual pass rate over the last 10 years for the CFA Level I exam has been 44%, and the recommended study time is about 300 hours. Here are some important preparation tips for the CFA exam:Focus on the most-tested material and develop a study plan six months before you take the examTake a prep course and use third-party resources to save timeAllocate study time based on each topic's weight and practice questions regularlyBe good at taking the CFA exam, work on quick recall, and understand the questionsFamiliarize yourself with the data-backed study habits linked to passing the examStart studying early, and start rightClear your CFA plan with family and friends and understand the time commitment required to pass the examApply CFA exam concepts to real life and learn how to take the CFA exam

Yes, the CFA syllabus is updated regularly to reflect changes in the investment industry and to ensure that candidates are prepared for the latest industry practices and trends. The CFA Institute, the governing body for the CFA exam, reviews and updates the syllabus on a regular basis, typically every three to five years.For example, the CFA Institute updated the Level I syllabus in 2020 to include new topics such as digital assets and sustainability, and to reflect changes in the investment industry. The Level II and Level III syllabi were also updated in 2020 to include new topics and to reflect changes in the industry.This year, a new chapter titled – “Introduction to Geopolitics” has been introduced under the Economics section for the Level I CFA syllabus. Corporate Ownership and Structures and Business Models are the two new readings that have been added under Corporate Issuers section. Major changes to the Capital Structure readings have been made. Minor changes to the Introduction to Corporate Governance & Other ESG Considerations reading has also been made for the Level I CFA curriculum.

Yes, you can use third-party study materials to supplement the official CFA curriculum and enhance your CFA exam preparation. Many candidates find that using additional study resources from reputable providers can be highly beneficial. Third-party study materials often provide comprehensive coverage of the CFA exam curriculum. They condense and explain complex topics, making them easier to understand. Some third-party providers offer concise study notes that summarize key concepts and formulas. When using third-party study materials, it's essential to choose reputable providers with a track record of success. The CFA Institute provides a list of approved prep providers on its website, which can be a good starting point.

The CFA syllabus covers a wide range of topic areas related to investment management, financial analysis, ethics, and professional standards. These topic areas are divided into specific readings and Learning Outcome Statements (LOS) within each level of the CFA exam. The main topic areas covered in the CFA syllabus are:1. Ethics and Professional Standards2. Quantitative Methods:3. Economics:4. Financial Reporting and Analysis5. Corporate Finance6. Equity Investment7. Fixed Income8. Derivatives9. Alternative Investments10. Portfolio Management and Wealth PlanningThese main topic areas are consistent across all three levels of the CFA exam, but the depth and complexity of coverage increase as candidates progress from Level I to Level III.

The CFA Level I exam covers a broad range of topics. Here are the major subject areas included in the Level I syllabus: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.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.Economics: The economics section covers microeconomics and macroeconomics, including supply and demand analysis, market structures, monetary and fiscal policy, and international trade.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.Corporate Finance: This area covers topics related to corporate finance, including capital budgeting, cost of capital, capital structure, dividend policy, and corporate governance.Equity Investments: The equity investments section focuses on equity markets, equity valuation models, industry and company analysis, and equity portfolio management.Fixed Income: This section delves into fixed income securities, bond valuation, yield measures, fixed income markets, and fixed income portfolio management.Derivatives: This area covers derivatives instruments, including options, futures, forwards, and swaps, along with their valuation and strategies for their use.Alternative Investments: This section introduces alternative investment types, such as real estate, private equity, hedge funds, and commodities, along with their characteristics and valuation.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.

Chartered financial analyst designation is a professional credential that is offered by the CFA institute to the financial and investment professionals. The designation of the Chartered Financial Analyst or CFA Charter is the most recognized and respected credential in the field of investment banking. It is a globally recognized credential. There are three levels in CFA Program that students will have to go through. Based on the historical data, pass rate for the CFA examination is about 40 percent.There is a wide range of topics related to investment management, stocks, derivatives, financial analysis which give you great understanding of everything you need in order to become a better Financial Analyst/Investment banker.CFA Level I Exam: This is the first examination that students will have to go through. In level one, students will have to focus on the concepts and tools that are applied to investment management and valuation. The CFA Level 1 exam is conducted in two sessions, each 3 hours long. It consists of 240 multiple-choice questions in two sessions of 120 questions each. The questions are designed based on the topic weightages given in the CFA Level 1 Exam Syllabus, with very slight deviation.CFA Level II Exam: This is the second examination that students will have to go through after passing the CFA level I Exam. In Level II, students will have to deal with the assets valuation. Students must have the ability to apply the concepts and tools that they have learned in level I. There are total 20 item set questions, split in two sessions. The morning and evening sessions have 10 item set questions each. The total number of questions in the CFA Level II exam is 120. The duration of the exam is 360 minutes. Some of the CFA level II topics are covered only in the morning session and other topics are covered only in the evening session.CFA Level III Exam: This is the last CFA exam that students will have to pass to become a CFA charterholder. In the level 3 examination, students will have to go through portfolio management in depth. CFA Level I and CFA Level II revolved around basic financial knowledge, investment valuation comprehension and the application of both. CFA Level III exam focuses on portfolio management and wealth planning. All the best.