CFA® charter is one of the most exalted credentials of those who work in the financial sector or who make their future in finance. The credential delivered by the CFA Institute commands the respect of all employers within the financial sector.
CFA® exam details:
CFA® course is divided into three levels. To obtain the charter, candidates must pass all consecutive levels of the course. The CFA® level 1 exam is divided in two parts. Every part consists of a 3-hour examination that includes 120 multiple choice questions. These questions are based on the level 1 learning outcomes statements as required by the CFA Institute.
CFA® exam Registration Process:
The CFA Institute offers the level 1 exam twice a year at their test centres located around the globe. To take the exam, a candidate must be enrolled on CFA Institute websites and register for the exam. Early registrations are often offered at a low price, whereas late enrollment requires a higher price for the exam.
CFA® LEVEL I SYLLABUS
The CFA® Level I syllabus focuses on the basic knowledge of the ten topic areas and simple analysis using investment tools. It is designed to introduce the candidate to the various concepts of the finance and investment world.
The topic areas covered in the CFA® Level 1 syllabus and their weightage is as follows:
Topic | Percentage of marks | Sub-topic |
---|---|---|
Financial reporting analysis | 15 | Financial reporting mechanics & Standards |
Understanding income statements | ||
Understanding balance sheet | ||
Ethics | 15 | Standards of professional conduct |
Global Investment Performance standard | ||
Quantitative analysis | 10 | Time value of money |
Discounted cash flow applications | ||
Statistical concepts and market returns | ||
Fixed income analysis | 11 | Fixed income securities |
Fixed income markets | ||
Introduction to fixed income valuation | ||
Equity Investment | 11 | Market organization and structure |
Security market indices | ||
Market efficiency | ||
Economics | 10 | Demand & supply analysis |
The Firm & market structures | ||
Aggregate output, Prices, Economic growth | ||
Corporate finance | 10 | Capital budgeting |
Cost of capital | ||
Portfolio management and wealth planning | 6 | Portfolio management |
Basics of portfolio planning and construction | ||
Derivatives | 6 | Derivatives market and instruments |
Basics of derivative pricing and valuation | ||
Alternative investment | 6 | Mutual funds |
Real Estate | ||
Total | 100 |
Overview on Important topics of CFA® Level I:
Based on the percentage of marks distributed, there are 6 most important topic that you have to focus more that is
- Financial Reporting Analyses
- Ethics and Professional Standards
- Quantitative Analyses
- Fixed Income Analyses
- Equity Investment
- Economics
Financial Reporting Analyses:
In this study you will get the idea of financial reporting, analysis of financial reports in investment decision making, the principal financial statements and management discussion and analysis of results.
Ethics and Professional Standards:
This module focuses on the essential foundations for the investment globally by promoting the highest standards of ethics, education, trust, reputation, confidence and value which is essential for a strong and healthy industry.
Quantitative Analyses:
This study represents the quantitative techniques that are essential in financial analysis. This session introduces the several tools of quantitative analysis like time value of money, descriptive statistics, and probability.
Fixed Income Analyses:
This part focuses on understanding the yield curve affects portfolio strategies and risk management. It includes interpreting future and implied spot rates, duration and convexity.
Equity Investment:
This study session presents additional valuation methods for estimating a company’s intrinsic value.
Economics:
This study focuses on the micro economic principles. These principles are used to describe the marketplace behavior of consumers and firms.
So does this solve your doubts regarding the CFA Syllabus? If you have any other queries then mention them in the comments box below and it shall be solved at the earliest.
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