CFA: Chartered Financial Analyst

CFAChartered Financial Analyst or (CFA) is one of the most reputed and respectable designation to earn in investment studies. The course is suitable for those who want a robust career in finance and accounting at big corporation shots like UBS, JP Morgan, Citigroup, Morgan Stanley, and BlackRock. If you also have a cult to play with big numbers in accounts ledger, then you should go for CFA.

The full form of CFA is Chartered Financial Analyst, is a professional degree course accredited internationally by the CFA Institute, formerly the Association for Investment Management and Research or AIMR.  It is a comprehensive study related to investment, accounting, economics, ethics, money management security analysis and finance. The course gives you the in-sight about management skills to deal with the real world scenario. Candidates are required to pass three levels of exams after that they get the title of the “CFA charter” and becomes a “CFA charterholder”. Since July 2014 there are there are approximately 120,000 charter holders in 35 countries are rendering their services.

To become a charterholder, candidates must satisfy the following eligibility criteria:

  • Have four years (48 months) of qualified work experience (or a combination of education and work experience acceptable by the CFA Institute). However, individual level exams may be written prior to satisfying this requirement;
  • Become a member of the CFA Institute and apply for membership to a local CFA member society;
  • Complete the CFA Program (mastery of the current CFA curriculum and passing three six-hour examinations);
  • Adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct.
  • Independent of any other requirements for becoming a charterholder, the CFA Program takes an average of four years for candidates to complete

To become a charterholder, a candidate has to pass three levels of CFA exam. One CFA paper exam is six hours long. Below is a brief introduction is given about three levels of CFA exam.

Level One Exam

The CFA level one examination is conducted only twice per year, on the first Saturday in June and December, as of 2017 respectively. It determines the diligence of a candidate based on 10 topic areas of the Candidate Body of Knowledge. These areas are Ethical and Professional Standards, Corporate Finance Quantitative Methods, Economics, Fixed Income, Financial Reporting and Analysis, Equity Investments, Derivatives, Alternative Investments, and Portfolio Management and Wealth Planning.

Level Two Exam

The CFA level two exam held only once per year, on the first Saturday in June. It comprises the valuation of various assets and accentuates the application of investment tools and concepts in contextual situations. The candidates, who have passed the CFA Level One exam, are eligible to appear for Level Two exam.

Level Three Exam

Alike the level two exam, this exam is also conducted once per year, on the first Saturday in June. It comprises the effective wealth planning and portfolio management by requiring the candidate to synthesize all of the concepts and analytical methods in the entire curriculum.  The test can be taken by the aspirants who have qualified the level one and two respectively.

CFA Exam Yearly Passes Weightage

Year Level 1 Level 2 Level 3
2016 Pass rate % 43% 46% 54%
2015 Pass % 42%/43% 46% 53%
2014 Pass % 44% 46% 54%
2013 Pass % 38%/43% 43% 49%
2012 Pass % 38%/37% 42% 52%
2011 Pass % 39%/38% 43% 51%
2010 Pass % 42%/36% 39% 46%
2009 Pass % 46%/34% 41% 49%
2008 Pass % 35% 46% 53%
2007 Pass % 39% 40% 50%
2006 Pass % 40% 48% 76%
2005 Pass % 35% 56% 55%
2004 Pass % 35% 32% 64%
2003 Pass % 41% 47% 68%
2002 Pass % 44% 47% 58%
Weighted Mean of Pass % 39.70% 44% 57.70%

Source: Wikipedia

CFA Course Fee:

December 2017 Exam (Level I) Fee Last Date
Early registration fee US$ 650‡ (ends 15 March 2017)
Standard registration fee US$ 930‡ (ends 16 August 2017)
Late registration fee US$ 1,380‡ (ends 13 September 2017)

CFA Salary

According to below mentioned are the expected salaries of a Charterholder.

Job Title National Salary Data
Financial Analyst $44,587 – $91,751
Investment Analyst $49,749 – $100,110
Portfolio Manager $68,645 – $167,501
Senior Financial Analyst $63,339 – $110,158
Research Analyst $49,166 – $112,864

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