Frequently Asked Questions
1. What is the CFA® charter?
The CFA charter is a globally recognized professional credential offered by the CFA Institute that demonstrates expertise in investment management and financial analysis. It is considered the gold standard in financial certifications and designations.
2. What is the process for obtaining the CFA charter?
To obtain the CFA charter, you must pass three levels of exams, meet the work experience requirements, and become a member of the CFA Institute.
3. What can candidates anticipate on the CFA Level I Exam?
The CFA Level I exam covers foundational topics including Ethics, Quantitative Methods, Economics, Financial Reporting, Corporate Finance, and Equity Investments. It consists of 180 multiple-choice questions split across two 2-hour 15-minute sessions. Candidates will be tested on a range of investment tools, financial concepts, and ethical standards. The exam emphasizes knowledge of fundamental theories and the application of analytical skills necessary for finance and investment professionals.
4. What are the requirements to sit for the CFA exam?
To sit for the CFA exam, candidates must meet one of the following:
Bachelor’s Degree: Have a bachelor’s degree or equivalent, or be within 23 months of graduation.
Undergraduate Students: Must be within 11 months of graduation to sit for Level II.
Professional Work Experience: Have a minimum of 4,000 hours of work experience and/or education acquired over three years, which doesn’t need to be investment-related. Paid internships and work in family businesses qualify.
CFA Institute may request proof of education or work experience at any time.
5. What is the format of Level I of the CFA exam?
The Level I CFA exam consists of 180 multiple-choice questions, split into two sessions, covering ten topic areas.
6. What subjects or topics are tested on the Level I CFA exam?
The Level I CFA exam covers ethics, quantitative methods, economics, financial reporting and analysis, corporate finance, equity investments, fixed income, derivatives, alternative investments, and portfolio management.
7. I am a working professional with 12+ hrs work will I still be able to take the exam?
Yes, many candidates are working professionals who successfully balance work and study. However, it requires discipline and effective time management.
8. How much time does it take to study for the exam?
On average, candidates spend about 300-400 hours studying for each level of the CFA exam.
9. How is Level I of the exam graded?
The Level I CFA exam is graded on a pass/fail basis, with the minimum passing score determined by the CFA Institute each year.
10. Can I do CFA after 12th?
You can definitely start preparing for CFA level I after 12th. You need to have a bachelor’s degree or be in the pre-final year of a bachelor’s program to register for the CFA exams. However, you can start preparing for the exam while completing your degree.
11. When can I sit for CFA Exams?
CFA exams are offered multiple times a year. The Level I exam is offered four times a year, while Levels II and III are offered twice a year.
12. What are the weights of the topics of Level I of the CFA exam?
The weights of the topics for the CFA Level I exam are determined by the CFA Institute and vary slightly each year. The key areas include ethics, financial reporting, and analysis, and portfolio management.
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