Introduction To CFA Qualification
The following article provides an outline for CFA Qualification. CFA (Charted Finance Analyst) is a program offered by CFA Institute, USA in the field of finance, investment, and business. It is a renowned course recognized across the world in financial services and management. Because of its global popularity, the value is increasing day by day and attracts big companies to recruit candidates who have secured this degree. CFA has 3 levels that needs to be cleared for securing the degree course and the difficulty of the exam increases with each level.
It is estimated that approximately 300-320 hours are required for each level to study and about 2 years to complete the course. To qualify for CFA and get the degree, candidates need to clear all 3 CFA levels. Each level has its importance. The subjects for all 3 levels are the same, so it depends on how you prepare for each exam.
Key Takeaways
- CFA (Charted Finance Analyst) is a globally recognized program that focuses on finance and investment-related topics. Candidates need to have a bachelor’s degree for enrolling in the CFA program.
- CFA course has 3 levels of exam. The level of difficulty increases with each level. Candidates need to prepare themselves for objective type and descriptive type questions.
- In level 2 and level 3, critical thinking, analytical thinking, and deep knowledge of the subject is tested, thus candidates need to develop a well-defined study plan for cracking the exam.
How To Pass CFA Level 1?
- Foundation: Most important part of the entire course is clearing the basis, thus spend some time clearing the basis.
- Know the exam pattern: The exam is conducted in 2 sessions of 135 minutes each, each session will have 90 questions. All are computer-based multiple-choice questions.
- Proper study materials: Study through the best training materials. It is recommended not to refer to more than 2 books for each subject as multiple references may confuse. Following the same author will make you get used to his explanation.
- Maintaining discipline: Prepare a proper time plan to cover 300 hours which is ideal in clearing the level 1 exam.
- Periodic revision: The exam questions will be pretty straight forward, person clearing the basis and revising the syllabus will have a higher chance to clear the exam.
- Know the calculator: You will be allowed to use the calculator. Practice well all the operations and know-how to reduce the time in calculations.
- Practice makes the difference: For the subjects related to maths, remembering formulas, solving the problem in a systematic process is the key. You can score more with practice only and also it helps to save time, reduce steps and store the formula in your subconscious memory.
How To Study CFA Level 2?
- Know the exam pattern: CFA level 2 exam will have vignettes i.e., descriptive or episode type. The candidate may need to refer to the question multiple times before answering. There are a total of 88 questions in 2 sessions of each 132 minutes which is computer-based. CFA level 2 has multiple choice questions but the number of options will vary between 4 to 6 and each is worth 3 points.
- It is application-based: Unlike CFA level 1, level 2 is application based which requires a deep understanding of the subject. It is advised to solve lots of application-based problems to get a knack for the questions.
- Discipline: It is estimated that 328 hours of study is required to have good confidence in passing the exam. Maintaining discipline in studying and revising is the key.
- Previous year’s question papers: Solving previous years question papers will give an overview of question type and can prepare accordingly.
How To Study CFA Level 3?
- Know the exam pattern: It has a combination of both multiple-choice and essay types. It consists of 8 to 11 vignettes and you may need to choose the correct option followed by a descriptive answer to justify your answer. For a numerical based question, a final answer would be enough. However, if you can put the steps, but it will not be evaluated for giving full score if the answer is partially correct or incorrect. There are 2 sessions in level 3 out of which 1st is essay type and 2nd is multiple-choice questions. The pattern for 2nd session is the same as level 2.
- Stick to the syllabus: In level 3 try to stick to the exact syllabus as the application and analytical-based questions are very high. Revising the basics or studying the whole syllabus may not help in this.
- Solve, solve and solve: The only way to crack the level 3 exam is to practice a lot. Take monk exams, solve previous years’ question papers, follow dedicated level 3 books.
Official website for the CFA exam is: https://www.cfainstitute.org/
Conclusion – CFA Qualification
Thus in the given article we saw CFA Qualification in detail.
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This is a guide to CFA Qualification. Here we discuss the introduction, how to pass CFA level 1? how to study level 2 and level 3 respectively. You can also go through our other suggested articles to learn more –
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