CFA Claritas Investment Certificate. Claritas® Program is a little unknown. But to get a glimpse of this examination, have a glance at the following statistics –
- Have you ever imagined that you can get a world-class certification just by investing 100 hours? If not, try Claritas, you would understand.
- From a candidate survey it was found that 76% of all students who pursued Claritas did so because they didn’t know any other avenue to build their skills in such a short time.
- The same candidate survey mentioned that 24% of the students who pursued Claritas did so because of they knew that Claritas could boost their career graph and could offer better prospects.
- Almost 6,480 students already passed out from Claritas.
- Unlike any other financial courses, Claritas takes much easier approach in study and in offering flexibility to its students. Thus the pass percentage is much more remarkable than other financial courses. It was found that more than 85% of students have passed out of Claritas Examination till now.
- Claritas Program® is not only valid in Europe and USA. This program is also available in developing countries of Asia and other parts of the world. To be specific, Claritas is truly a globally recognized course.
Claritas Investment Certificate doesn’t need facts to prove it. The best way to experience the value of Claritas is to enrol for the program, if you have interest in the same. But before you do anything, give this article a read. Take out pen and paper and if you find anything useful, write it down.
We assure you that if you read this article, you may not need to read any other article on Claritas ever again, because we bring in all the information and tit-bits right here.
The article flows in the following order;
- About Claritas
- Why pursue Claritas Investment Certificate?
- What top companies have to say about Claritas?
- Claritas Program Format
- Claritas Program Modules
- Claritas Curriculum Highlights
- Claritas Program Weights / Breakdown
- Claritas Program Fees
- Claritas Program Results & Passing Rates
- Claritas Study Material
- Strategies to pass Claritas Program
About Claritas Program
Claritas Investment Certificate is little unknown like any underdogs are. It’s not well known because very few people took the time and found out what’s in it for them. But if they do right away they would see there’s so much of value given under 100 hours. For example, if you can study 4 hours a day, all you need 25 days to be eligible to pass Claritas Program® in flying colours. But what’s easy to do is easy not to do. Read further to know more about it.
- Roles: Claritas is designed for entry level professionals who want to grow in the investment domain. But if you want to update your knowledge in investment, there is no better course than this.
- Exam: Passing Claritas Examination is super easy. All you need to do is to sit for 2 hours and answer 120 multiple choice questions. But you shouldn’t go by its appearance. You need to work hard to be able to answer them properly. Remember, Claritas Program® is conducted under very much reputed and globally recognized CFA Institute.
- Claritas Exam Dates: The purpose of designing a course like Claritas is to offer its students much more flexibility. Thus if you want to sit for Claritas, all you need to do is to sit for exam within 6 months from the date of registration.
- Nitty-gritty: As the scope of study is limited in Claritas Program®, you don’t need to study multiple subjects. Under 100 hours, you need to go through 7 modules and total 20 chapters (will discuss in detail later).
Eligibility: The best part of Claritas Examination is that anyone can take the examination. All you need to have is a decent knowledge in English.
Why pursue Claritas?
CFA Claritas Investment Certificate is a course which should be pursued by anybody who wants to have basic domain knowledge in investment. If you want to start with investment analysis and don’t know where to begin, Claritas is a best place to start. But don’t choose Claritas because we’re saying it. You should have your own reasons as well. In the beginning, we provided the statistics of why students joined Claritas Program®. We will present the whole statistics here, so you can get some guiding light.
- Knowledge in any domain is an important part. Thus, from the candidate survey done on the candidates who joined CFA Claritas program, it was found that 76% of the candidates joined because of developing knowledge.
- If you do a course and that doesn’t have any global recognition, would it be relevant to your industry for a long time? You would agree that, it won’t. 43% of the candidates said they joined the course because of global recognition of this course.
- Everybody is not directly related to investment, but people who are indirectly related to the domain can also get the benefit of CFA Claritas. 30% of candidates who joined Claritas program said that they joined to boost up their confidence in the domain they’re working in currently.
- 27% of candidates wanted a global network to help them grow and to increase their value in the market. Thus they joined Claritas Program®.
- What’s most surprising to see is that only 24% who wanted to improve their career graph joined Claritas Program®.
Your reason of pursuance can be different that the above. But let’s see what top companies are saying about Claritas Program®.
What top companies have to say about Claritas?
CFA Claritas is a brand new course which was launched on 20th May, 2013 at 66th CFA Institute Annual Conference in Singapore. But still many companies are taking this course to understand all about investment. Students are still wondering about the CFA Claritas job opportunities. Let’s see what top 3 companies have to say about Claritas Program®.
- Aviva Investor: A team of employees were selected for Claritas Pilot course. They mentioned that it’s a good course for increasing professional credibility if somehow you’re attached to roles which need you to support investment within the domain of human resources, legal, operations and finance. It’s certainly not a course which will reach the standard of CFA but a good course to begin with in investment, they remarked.
- BlackRock: A team from BlackRock has also participated in the pilot course. Their take slightly different than what the employees at Aviva mentioned. They said that taking that course improved their internal communication and gave them a perspective on how their roles fit in the entire gamut of functions within the organization. They mentioned Claritas is more appropriate for small businesses which can use its magnificent foundational knowledge on investment.
- Legal & General Investment Management: The expert in LGIM remarked that Claritas is a course which broadens one’s perspective toward understanding where one stands in a job role. He said that it’s particularly effective for people who join the organizations as apprentices or fresh graduates.
Claritas Program Format
From the above discussion you understood that Claritas is a program which needs 100 hours of study. But you may be wondering what exactly you need to study and how would it be relevant to your existing domain of work. In this section, we will talk about each module you need to go through and will give a brief overview of each module. Later we will talk about each chapter covered under each module.
You will be given the materials for study and all questions will come from the materials CFA institute will provide.
For exam all you need to do is to sit for 2 hours exam and answer 120 multiple choice questions.
Claritas Program Module
There are total seven modules which you need to cover under Claritas Program®. Let’s look at those one by one.
Module 1: Industry Overview
In this module, you will understand how investment works in business – from schools to hospitals. You will understand how you will be able to help people save for the future as well as fund their dream businesses. The core purpose of this module is to teach you a helicopter view of investment within the purview of ethics.
Module 2: Ethics and Regulation
This module talks about the fundamentals of investment. How would you fetch a client – by getting his money or by earning his trust, reputation and confidence? You will a full proof customer centric investment approach in this module.
Module 3: Inputs and Tools
How business happens? How the economic perspective of business plays out at micro, macro and global levels? You will learn how to use and deal with economic aspect of business in this module and will also gain big picture of all the businesses put together.
Module 4: Investment Instruments
Here you go into the depths of investment instruments. How would you use investment options? How would you invest in basic equities to bonds to specialized investment instruments like real estate and derivatives, you will learn in this module.
Module 5: Industry Structure
How the industry helps shape the investment decisions we make on every day basis? You will learn about the stakeholders in the industry who help you in investments and also about different markets where investment happens.
Module 6: Serving Client Needs
Learning about investments is all about serving clients’ needs and solving them. In this module, you will get to know clients through and through so that you can serve them better.
Module 7: Industry Controls
There should be simultaneous measures to control and to systematize investments. In this module you will learn about all the control and systems that ensures smooth running of the investments so that you can serve the clients better.
These modules are properly designed so that you can gain a whole view of how investment world works. Let’s dig deep and let’s look at each chapter briefly to understand better.
Claritas Curriculum Highlights
Module 1 –
- Chapter 1 – The Investment Industry: A Top-Down View
[Imagine you’re viewing the world of investment from a helicopter. You will get to know about financial services, types, investment industry and economics forces that dictate the whole functions of the industry.]
Module 2 –
- Chapter 2 – Ethics and Investment Professionalism
[You will learn about the need for ethics in investment world and you will be able to identify the obligations and framework for making ethical decisions.]
- Chapter 3 – Regulation
[You will get to know about regulation, objectives of regulation and also about compliance.]
Module 3 –
- Chapter 4 – Microeconomics
[You will learn the basic economics, divisions, demand & supply, market equilibrium, production & cost functions, pricing and how market structures affect investments.]
- Chapter 5 – Macroeconomics
[After reading this chapter you would be able to understand economic indicators, the need of macroeconomic consideration, components of GDP, economic indicators, business cycles and about monetary & fiscal policies.]
- Chapter 6 – Economics of International Trade
[You will learn about import, export, balance of payments and many specialized definitions of international trade.]
- Chapter 7 – Financial Statements
[Learning to see and understand financial statements is a great skill. You will learn how to see balance sheet, trial balance and how to link between two figures via ratio analysis. You will also learn about cash flow statement.]
- Chapter 8 – Quantitative Concepts
[You will get to know about the nitty-gritty of financial concepts. From time value of money to interpreting correlation, you would be able to get to know each and every fundamental concept of finance from this chapter.]
Module 4 –
- Chapter 9 – Debt Securities
[From discounted cash flow to bonds, from risk in investing in debt securities to credit spread, you will learn a lot from this chapter.]
- Chapter 10 – Equity Securities
[In this chapter, you will learn about equity and a comparative analysis between equity & debt securities.]
- Chapter 11 – Derivatives
[You will get to know everything about derivatives and will get good understanding about forwards, futures, swaps & options.]
- Chapter 12 – Alternative Investments
[You will learn about private equity investments, real estate investments and commodity investments from this chapter.]
Module 5 –
- Chapter 13 – Structure of the Investment Industry
[You will learn about investment management and investment information services and you will also gain insights about brokers and dealers.]
- Chapter 14 – Investment Vehicles
[You will get to know about hedge funds, mutual funds and managed accounts.]
- Chapter 15 – The Functioning of Financial Markets
[You will understand the difference between primary and secondary markets; you will also know about private placements, public offerings and right issues.]
Module 6 –
- Chapter 16 – Investors and Their needs
[You will get to know different types and their different needs and how to structure investment policy for serving client needs.]
- Chapter 17 – Investment Management
[You will learn about systematic & specific risk and also about investment objectives and constraints.]
Module 7 –
- Chapter 18 – Risk Management
[You will learn all about risk in investments and how to mitigate and manage it.]
- Chapter 19 – Performance Evaluation
[This chapter will teach you the process of performance evaluation and how to measure performance via different methods and tools. You will also learn the concept of alpha and uses of performance attribution.]
- Chapter 20 – Investment Industry Documentation
[After learning everything, this chapter is specifically designed to teach you about documentation and how to do document management.]
Claritas Program Weights / Breakdown
CFA institute says that you need to study 100 hours to be able to clear Claritas Program®. But to be able to give proportionate importance to each module, you need to know how the breakdown is being done. Here’s the percentage of weights given to each module.
You need to give more importance to Module 3, 4, 5 and 7. Then there comes Module 2 and finally Module 1 & 6 in order of importance.
Claritas Program Fees
If you compare the fees of any other global course with the fees of Claritas, most certainly, the fees are reasonable. For individual registration, you need to pay US $685 which includes exam registration fee, all study materials (mobile study app, eBook, study planner, chapter review questions, module practice tests and a mock exam) and one exam sitting.
- You will get reasonable discount when you pay the fees in bulk.
- For 25-99 vouchers, the fees would be US $635 each.
- For 100-249 vouchers, you need to pay US $585 each.
- For 250 or more, you would have to pay US $485 each.
Claritas Exam Results & Passing Rates
- Claritas program has got started just 2.5 years ago. Till July 1, 2015, 6400 candidates have taken the test out of which 85% candidates passed the exam.
- After you finish your exam, you will get a “pass” or “did not pass” notification on the screen. Within 5 days after exam, you will get an official email stating whether you pass or did not pass the exam.
- If you pass the exam, you will get the certificate within 4-6 weeks.
- If you don’t pass, the institute will offer you information about how you performed in each module so that you can improve in your next attempt.
- If you don’t pass the exam, you need to pay the registration fee again. You can retake the exam 3 times during the next 12 months. But maximum attempts for Claritas Program® is limited to 5 times in a lifetime.
Claritas Study Material
Claritas Study Material is being provided by the CFA Institute. All you need to do is to dive in and invest a good amount of time every day to prepare for the exam.
Strategies to pass Claritas Program
Now as CFA Institute has mentioned that you need to study 100 hours for exam, the general tendency is to study for only 100 hours or less to pass the exam. To ensure that you definitely pass the exam in the first attempt is to study better and study more since the beginning. Here’s the plan.
- You will get the study planner along with the study material provided by the CFA institute. Use it well.
- You will get 180 days to study for Claritas. So, each day if you study even one hour, you will be able to study at least 180 hours.
- If you want to pass the exam in first attempt, it’s better to study minimum 200 hours. First 100 hours should be invested for reading all the chapters. Next 50 hours would be invested for first revision. And the last 50 hours would be divided into second revision and attempting mock tests.
- If you are a sincere student, you would be able to crack Claritas Program® very easily.
Wondering what it the difference between Claritas Program and CFA examination, you may have a look at this detailed comparison on CFA vs Claritas.
Other useful comparisons –
Wish you all the luck for your Claritas Program®. Remember, it can add tremendous value to you if you sincerely study and approach the exam with right preparation. From the above, we can conclude that Claritas is not for everyone. People who want more in-depth knowledge in investment should go for IMC (Investment Management Certificate) or CFA. But if you are the ones who support investment roles, Claritas is the perfect course for you to begin with.