What is the full form of CFA?

Introduction

Chartered Financial Analyst (CFA) is a course which is globally recognized. This course is offered by the CFA institute.

This is one of the top most degrees in the field of Financial Services and Management and in the field of Investment Management and Analysis. Hence, in this article we will briefly discuss CFA, eligibility for CFA, exam format and its several career opportunities.

About CFA

The CFA Institute awards an internationally recognised professional title of Chartered Financial Analyst (CFA). This is one of the most demanding and tough courses. After passing all three levels of exam students get the title of CFA from the CFA Institute. This course can enable candidates to get high paying jobs in the sector of finance and investment.

All the three levels of the exam ask questions from Accounts, Economic, Security Analysis and Wealth Management. Candidates passing this exam can also take practice as an expert independently.

There are around 164 nations and territories that consist of more than 160,000 CFA certificate holders. The institute has around 156 regional members and nine offices which are globally placed.

The CFA is recognised as a non-profit organisation which functions globally. It mainly functions in the financial sector and performs functions related to investment with high end professionalism.

Eligibility of CFA

Candidates must hold a bachelor’s degree or equivalent in order to enrol themselves for the CFA course. Candidates who are in their final stage or semester of their Bachelor’s degree are also eligible to enrol themselves for the CFA course. In other cases, candidates with four years of relevant work experience can also apply for the CFA course. Candidates who have a combination of both work and college experience can also apply for this course.

CFA Exam Format

The Level I Exam of CFA is conducted twice a year, in the months of June and December. This exam emphasises on tools, analysis and other body of knowledge of the candidate. These topics include economics, mathematical methods, corporate finance, equity investments, fixed income, derivatives, alternative investments, ethical and professional standards, portfolio management, and wealth planning. The test consists of 240 multiple-choice questions that must be answered in six hours. The exam is divided into morning and afternoon shifts. 120 questions are required to be answered in both shifts respectively.

The Level II Exam is conducted each year in June. It focuses on the use of investing techniques and concepts in situation-specific scenarios. In this level there are 88 set based MCQs. Students will have 4.5 hours for taking the exam and they are allowed to take breaks in between.

The Level III Exam of CFA is also conducted through MCQs based on the above- mentioned subjects of level I but mostly focused on planning of wealth, management of portfolio and other concepts and analytics. Total time of this exam is also 4.5 hours whose session will be divided into 2 hours 15 minutes each. The questions will consist of 8 to 11 vignettes and a total of 44 MCQs. Each MCQs will have three options.

Benefits and Career Opportunities

A firm foundation in sophisticated investment analysis and practical portfolio management abilities is provided by the CFA Program. The curriculum is kept up to date on the basis of continuous recommendations from business professionals and market specialists.

Certificate holders of CFA work in different positions related to financial and investment management. They can also take up research positions like Research Analysts, Risk Analysts and Portfolio Managers. In addition to a wide range of professional pathways both inside and beyond the sector, CFA charterholders go on to have lifelong employment in asset and wealth management, investment banking, commercial banking, and consultancy.

Earning the CFA charter proves to employers that you have the knowledge and dedication necessary to succeed in today's complicated and changing investment sector. It is a credential that is recognised throughout the world in the investment management profession. Investment firms are aware that the CFA accreditation which is a sign of distinction and that it denotes a higher level.

Conclusion

CFA is one of the most respectable courses in the world. It is highly demanding. Students enjoy global certification, good salary besides developing entrepreneurial skills and expertise in finance and investment. They can also become part of great networking that may help them in their career prospects.

FAQs

Q1. What is the difference between CFA and CA?

Ans: The CFA course is taken by candidates who want to specialise in financial and investment analysis whereas the CA course or the Chartered Accountancy course is related to commerce and accountancy.

Q2. What is a University Affiliate Program?

Ans: The CFA institute has started the University Affiliate Program through which different universities incorporate a portion of the CFA’s Program Candidate Body of Knowledge. This includes the Standards of Professional Conduct and Code of Ethics.

Q3. When was the CFA Institute formed?

Ans: The CFA Institute was formed in 1947 when four societies concerned with financial analysis came together. These societies are Boston, Chicago, New York and Philadelphia.