Full Form of CFA

Full Form of CFA – Chartered Financial Analyst

The full form of CFA is a Chartered Financial Analyst. It is a globally recognized professional qualification that provides a candidate with knowledge of subjects like accounting, economics, capital markets, money management, security analysis, etc. which helps an individual boost their career in the financial services sector.

CFA is a qualification provided by the CFA Institute, which was established back in 1947. Over these 70+ years, of CFA program has emerged as the benchmark qualification for the investment industry.

Why Pursue CFA?

If one wants to make a decision whether to choose CFA as a/ career option or not following are the few factors which may help in coming to a sensible decision,

  • That certification is globally recognized with over 167,000 professionals around the world. It is recognized in a minimum of 30 countries, which provides access to career options worldwide.
  • It provides an edge for getting into the world’s biggest companies in the financial services sectors. Companies like JP Morgan Chase, Pricewaterhouse Coppers, HSBC, Ernst & Young, Morgan Stanly, Bank of America are examples.
  • CFA, when compared to an MBA program, is a more affordable program. CFA costs in a range of $ 3,000 to $ 5,000 based on what time you register and what study material you opt for as compared to $ 70,000 to $ 100,000 for an MBA.
  • It provides in-depth knowledge in the areas of investment analysis, asset management, and ethics.
  • It allows you to gain analytical skills and expertise in quantitative methods, economics, financial reporting, investment analysis, and portfolio management. This set of skills and knowledge you will develop as you become a CFA charter holder will serve you well throughout your career.
  • It provides a varied range of career options such as portfolio manager, risk manager, research analyst, and many other investment industry profiles.

Therefore, if your goals match the things offer by CFA Certification, it can be one of the courses to opt for. Also, it is good to know that the CFA charter is a highly selective process. Fewer than one in five candidates become a CFA charter holder.

Full-Form-of-CFA

Exam Levels and Format

CFA charter is a self-study program designed by the CFA Institute. To become a Chartered Financial Analyst and hold a CFA charter, one needs to clear three examination levels sequentially.

CFA-Exam-Levels

LEVEL I

Exam Format: Multiple choice questions

The CFA Level I exam consists of 240 multiple choice questions, split between two 3-hour sessions. Candidates must attend both sessions.

  • Morning session (3 hours): 120 MCQs, covering all topics
  • Afternoon session (3 hours): 120 MCQs covering all topics

The topics covered on CFA Level I are,

  • Ethical and Professional Standards
  • Quantitative Methods
  • Economics
  • Financial Reporting and Analysis
  • Corporate Finance
  • Portfolio Management and Wealth Planning
  • Equity Investments
  • Fixed Income
  • Derivatives
  • Alternative Investments

Exam dates: Level I examination is conducted twice a year, i.e., in June and December.

Passing rate: The pass rate for the June 2019 Level I CFA Program exam was 41%. 

LEVEL II

Exam format: Multiple choice questions

The CFA level II exam consists of 120 MCQs divided into 20 sets, consisting of 6 questions each and are divided into 2 sessions.

The topics covered on CFA Level II are,

  • Ethical and Professional Standards
  • Quantitative Methods
  • Economics
  • Financial Reporting and Analysis
  • Corporate Finance
  • Equity Investments
  • Fixed Income
  • Derivatives
  • Alternative Investments
  • Portfolio Management and Wealth planning

Exam dates: Level II examination is conducted just once per year, i.e., in June.

Passing rate: The pass rate for the June 2019 Level II CFA Program exam was 44%.

LEVEL III

Exam format: Written Examination

The CFA level III is a written examination, which makes it a lot different from levels I and II. The questions are more like case studies.

The topics covered on CFA Level 2 are,

Exam dates: Level III examination is conducted just once per year, i.e., in the month of June.

Passing rate: The pass rate for the June 2019 Level III CFA Program exam was 56%.

After passing all three levels of examination, if an individual wishes to apply for the CFA charter, he has to comply with the institute’s work experience norms. This norm states that the person must have professional work experience in the relevant field for four years (48 months).

Eligibility

To be eligible for the examination, one is required to have a bachelor’s (or equivalent) degree or be in the final year of bachelor’s degree at the time of registration, and also, he is required to hold a valid international passport

To hold the CFA charter and the above condition, one has to pass all levels of the CFA examination and must have a professional work experience of 4 years (48 months). After this, one can apply for CFA membership.

Examination Fees

One- time registration fees USD 450
Early registration fees for all levels USD 700
Standard registration fees for all levels USD 1,000
Late registration fees for all levels USD 1,450

How to Enroll for CFA Exams?

To register for CFA exams, one can visit the official website of the CFA Institute. The link for registration is https://www.cfainstitute.org/en/programs/cfa/register

Salary

Salary-of-CFA

Chartered Financial analyst is a globally recognized qualification in finance. Newly qualified Chartered Financial Analyst can have an average salary in the range of Rs. 5 lacs to Rs. 10 Lacs per annum in India and experience in the field eventual hike.

Recommended Articles

This has been a guide to the Full Form of CFA and its definition. Here we learn the exam format, fee structure, and eligibility criteria of CFA along with its enrollment. You may refer to the following articles to learn more about finance –

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