A CFA certification is an invaluable credential for any finance and investment professional. The course is crucial in developing a deep understanding of real-world portfolio management and advanced investment analyst skills.
If you are an aspiring CFA charter holder, this blog will guide you on how to become a Chartered Financial Analyst (CFA). We’ll cover the fundamentals of how to get a CFA certification, including what CFA is and why it is such a coveted certification for finance and investment professionals.
What is CFA?
CFA is the abbreviated form of Chartered Financial Analyst. Candidates with a background in accounting, finance, business or economics primarily seek the CFA certification.
The CFA Institute awards the CFA charter to candidates who complete the CFA program and have the required work experience requirements.
CFA charter holders gain the qualification to work in executive and senior-level designations in organisations dealing with risk management, investment management, asset management, and related fields.
To become a CFA, you must follow specific steps, starting with enrolling in a CFA program. Read on to learn more about how to get a Chartered Financial Analyst certification.
How Do I Become a CFA?
To become a CFA, you have to complete the following steps:
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Enrol in the CFA program
While candidates from any background can enrol in the CFA program, there are some eligibility criteria that you have to fulfil to enrol in the CFA Level I program. These are:
- At least enrolled for an undergraduate program
- B.Com/M.Com
- Graduate, Post Graduate (M.Com/MBA)
- CA/CA Inter
- The exam window should be 23 months or less before graduation
You can only appear for CFA Level II and Level III after completing CFA Level I.
Apart from these, the candidate must have:
- An international travel passport
- Live in a participating country
- Be ready to take the CFA exams in English
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Applying for the CFA certification exams
After checking the eligibility, it is time for the CFA application process.
- You must create an account by registering on the CFA Institute’s official website.
- Fill in the necessary details and choose your examination centre.
- Check the’ Scholarship’ section to apply for a scholarship.
- The registration process is completed by paying the application and one-time fees. There is an early and standard registration fee (the former is cheaper).
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Clearing all three levels of the CFA exams
To become a successful CFA charter holder, you must pass all three CFA exams – I, II, and III.
Curriculum
- Chapter 1 – Corporate Finance – 8-12% weightage in Level 1; 5-10% in Level 2; not tested in Level 3
- Chapter 2 – Financial Reporting Analysis – 13-17% weightage in Level 1; 10-15% in Level 2; not tested in Level 3
- Chapter 3 – Equity – 10-12% weightage in Level 1; 10-15% in Level 2; 10-15% in Level 3
- Chapter 4 – Alternative Investment – 5-8% weightage in Level 1; 5-10% in Level 2; 5-10% in Level 3
- Chapter 5 – Derivative – 5-8% weightage in Level 1; 5-10% in Level 2; 5-10% in Level 3
- Chapter 6 – Fixed Income – 10-12% weightage in Level 1; 10-15% in Level 2; 15-20% in Level 3
- Chapter 7 – Quantitative Techniques – 8-12% weightage in Level 1; 5-10% in Level 2; not tested in Level 3
- Chapter 8 – Portfolio Management – 5-8% weightage in Level 1; 10-15% in Level 2; 35-40% in Level 3
- Chapter 9 – Ethics – 15-20% weightage in Level 1; 10-15% in Level 2; 10-15% in Level 3
- Chapter 10 – Economics – 8-12% weightage in Level 1; 5-10% in Level 2; 5-10% in Level 3
Exam structure and format
- Level I
| Frequency of exam | 4 times yearly in February, May, August and November |
| Format of exam questions | Multiple choice questions (MCQ) |
| Exam structure & duration | Level 1 exams are in 2 sessions spanning 4.5 hours with 180 MCQ
|
| Results | Within 60 days of the Level I examination via email |
- Level II
| Frequency of exam | 3 times yearly in May, August and November from 2023 |
| Format of exam questions | Item-set-based multiple choice questions (MCQ), where each item set has 4-6 questions. Each question carries 3 points. |
| Exam structure & duration | Level 2 exams are in 2 sessions spanning 4 hours 24 minutes with 88 MCQ in item-set format.
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| Results | Within 60 days of the Level II examination via email |
- Level 3
| Frequency of exam | Twice yearly in February and August from 2023 |
| Format of exam questions | A mix of item-based multiple choice questions (MCQ) and constructed response (essay) questions |
| Exam structure & duration | Level 3 exams are in 2 sessions spanning 4 hours 24 minutes. Both sessions have a mix of item-based multiple-choice questions (MCQ) and constructed response (essay) questions.
There are either 6 item sets and 5 essay sets or vice versa. In total, there are 11 constructed response sets and 11 item sets, with 12 points for each set. |
| Results | Within 90 days of the Level II examination via email |
Passing the CFA exams is challenging and requires rigorous and concentrated study. To pass every level of the CFA exams, a candidate must study for at least 300 hours – the more, the better.
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Acquiring required work experience
To take another step towards acquiring the designation of a CFA, you must have 4000 hours of professional work experience. While some candidates gather this experience before the exam, some complete it during and after clearing the exams.
Relevant work experience can include a wide range of investment and financial experience covering corporate finance, trading, etc.
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Submitting reference letters
Passing three CFA exams and acquiring relevant work experience is not enough to achieve a CFA charter. You must obtain reference letters, preferably from current CFA charter holders or supervisors.
The reference letters should certify your professional behaviour, working skills and abilities. It should also present valid reasons why you are eligible to be a CFA charter holder.
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Final application
Once you complete all the steps mentioned above, you can make the final application to become a CFA charter holder. You have to submit your prerequisites and a certain payment for review purposes.
The CFA Institute takes 10 business days and 4 weeks to review regular and affiliate membership applications, respectively. Once the review is complete, you will get an email with approval. You are now a CFA charter holder officially.
CFA Program Costs
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One-time enrolment fee
You will have to pay a one-time enrolment fee of USD 350 while registering for the CFA program.
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Registration costs
Registration costs will vary depending on the time of the registration. For all levels of the CFA exam, the early registration fee is USD 900/USD 940, while the standard registration fee is USD 1200/USD 1,250.
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Rescheduling fee
If you want to reschedule your exam appointment, you must pay a fee of USD 250.
Conclusion
With this blog, you must have developed a fair idea of how to become a chartered financial analyst (CFA). With this esteemed designation, many lucrative career opportunities open up with investment companies, financial security firms, banks, MNCs, etc.
The WallStreet School offers CFA classroom bootcamp and online CFA coaching to CFA aspirants. We offer online and classroom coaching via recorded video classes, study planners, mock tests, summary sheets and explanatory notes.
Enrol now for the program at The WallStreet School!
Contact us via email or phone (+91-9953729651) for further queries.
FAQs
- How much time will I need to become a CFA?
You will need 6-9 months of preparation for every CFA exam level. You will also need to add the 4000 working hours. Achieving a CFA charter holder designation takes almost 3-5 years.
- Is Articleship mandatory for CFA?
No, Articleship is not mandatory for CFA. CA Articleship is the training needed by ICAI and is not applicable for CFA.
- Which specialisation in graduation is best for CFA?
If you intend to do CFA in future and are thinking about which undergraduate specialisation will be helpful, you can consider courses like Bachelor of Economics (BE), Bachelor of Commerce (B.Com) or Bachelor of Accounting and Finance (BAF). However, individuals from any background who are interested in a finance career can enrol for CFA.
