CFA level 1 syllabus

The CFA® Program has emerged as the benchmark qualification and one of the best credentials for those who works in the investment or financial industry. So let us read about CFA Level 1 syllabus and exam details.

CFA exam details:

The program is divided into three level ( level 1, level 2 and level 3) and in order to obtain the charter the candidate has to clear all three levels. CFA level 1 exam is conducted twice in a year once in June and again in December.

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Exam Structure

The CFA®  Level 1 exam consist of 240 multiple choice questions which is conducted in two parts, morning session (9:00 AM to 12:00 PM) and afternoon session (2:00 PM to 5:00 PM) with 120 questions each. The important thing to note is that questions from all 10 subjects will be asked in both the sessions.

CFA Level 1 syllabus

The CFA program is highly practical course and will provide a lot of info about how the real financial market function. The syllabus is made keeping the above thing in mind so let us see how to connect with the syllabus.

Since CFA is a financial and investment market course so start with thinking about the options we have for investment

1. Equity Investment

The most common way of investing your money is through share market whether primary or secondary. So this subject will teach the valuation methods to evaluate share of a particular company and calculate intrinsic value.

2. Fixed Income Analyses

Second you think of investing in fixed income securities namely bonds and debentures. This part include studding the fixed income instruments and their yield curve.

3. Derivatives

This word is formed from joining two words “Derive + Value”. It is equivalent to betting but in a more researched and calculated manner.

4. Alternative Investment

Options other than these like commodities, real state, antiques, foreign exchange and mutual funds come under this category.

5. Portfolio Management

Once you have identified the ways where you can put your money in now it is important to decide how much money of the total (acc. to your risk and return expectations) you want to put in each of these options. This is called portfolio management.

Big question is How will you decide to put how much in which investment method ? The answer is simple i.e. you have to do research using certain tools.

6. Economics

Economics helps you to understand and evaluate in which direction the growth of a country is moving ahead. Suppose if the growth projections are bullish then one should invest in Automobile, construction or sectors which depends on the economies growth and in negative growth you should invest in government bonds.

7. Quantitative Tools

Evaluation can only be done on refined and calculated data. So to make the raw data usable quantitative tools are used. You will learn how to play with the numbers in this subject.

8. Financial Reporting Analyses

You need to look back before jumping into the future. That is what financial reporting analyses is for it helps you to look into companies past performances and helps you make a future projections.

9. Ethics

Once you become an investment adviser it is extremely important for you to work in a most ethical manner since it is not only about you, but the whole industries sentiments are dependent on it.

10.Corporate finance

Many of the CFA® charter holder will be working as a company CFO or in their financial department so they should know how the corporate finance works.

This is all that you needed to know about the syllabus so pick up your books and start preparing for your exams.