CFA Level 2 exam is a significant milestone in the Chartered Financial Analyst (CFA) programme. It builds upon the foundational knowledge gained in Level I and delves deeper into investment analysis and valuation.
The CFA Level 2 course details are essential for candidates preparing for this challenging examination.
Understanding these critical details can help candidates plan their study approach effectively and make informed decisions about pursuing the CFA Level II certification.
What Is the CFA Exam?
CFA Institute offers the CFA professional designation to individuals who pass its three-part exam. The exams increase in difficulty progressively and cover diverse topics such as accounting, economics, ethics, money management, and security analysis.
Held annually in June at various global centres, candidates must achieve a minimum score to pass each level. If unsuccessful, candidates receive comparative information and can attempt the exam again.
Why Is the CFA Course in Demand?
- India’s prominence in the accounting field: As a hub for multinational financial corporations, India offers significant opportunities and broad scope for individuals holding a CFA certificate.
- Global recognition: The CFA certification provided by the CFA Institute is internationally recognised and accepted in more than 165 countries worldwide.
- High-profile career prospects: CFA graduates are recruited for esteemed positions in the financial sector. Leading global financial organisations, including Morgan Stanley, Bank of America ML, Wells Fargo, HSBC, and JP Morgan Chase, actively hire CFA professionals.
- Expansion of stock brokering operations: A CFA qualification proves advantageous, especially for Indian stockbrokers eyeing operational expansion beyond national boundaries. The CFA curriculum equips candidates with knowledge of primary and secondary markets, enhancing their expertise in this area.
- Rapid wealth management growth: India’s wealth management industry is experiencing a significant year-on-year increase of 20%. CFA graduates are in demand to provide investment and financial planning services for individual investors in this expanding sector.
Skills That Every CFA Must Know
Top skills CFAs must have:
- Financial Analysis: Possess expertise in evaluating financial statements, assessing company performance, and analysing investment opportunities.
- Risk Management: Excel in understanding and effectively managing risks.
- Time Management: Demonstrate exceptional time management skills, balancing study, work, and personal commitments.
- Quantitative Proficiency: Exhibit solid mathematical and statistical abilities to tackle financial problems.
- Data Analysis: Proficiently collect, analyse, and interpret extensive data.
- Modelling: Use models to analyse financial markets and make informed investment decisions
- Risk Identification: Identify and manage potential risks.
- Investment Research: Conduct thorough research on companies and securities.
- Portfolio Management: Skillfully manage investment portfolios.
Registration Process for CFA Level 2
Step 1: Go to the CFA Institute’s official website for registration.
Step 2: Select Level 2 of the CFA programme after logging in using the registered ID and password created during CFA Level 1 registration.
Step 3: For verification, provide the required details, such as CFA Level 1 exam results and work experience.
Step 4: Choose the preferred exam cities from the available options.
Step 5: Select the mode of delivery of study material from the institute.
Step 6: Pay the registration fee using options like cheque, credit card, ACH, money order, postal, or wire transfer.
Step 7: Review the form, submit it, and print the CFA Level 2 registration for future reference.
CFA Level 2 Course Fees
As of 2023, the CFA Level 2 course fees are stated in the table below:
| Particulars | Fees |
| Compulsory one-time enrolment fee (one-time fee for first-time registrants of the Level I Exam) | $350 |
| Enrollment Fee | Zero (Paid during registration) |
| Early Registration Fee | $900 |
| Standard Registration Fee | $1200 |
There is no additional cost for scheduling the CFA Level 2 exam by the deadline. However, if you need to change your exam date within the same session, a rescheduling fee of $250 will be charged.
CFA Level 2 Course Syllabus
When preparing for the CFA Level 2 exam, candidates should begin by acquainting themselves with the CFA Level 2 course syllabus. It enables them to grasp the covered topics and their respective weightage percentages.
Candidates must have passed the Level 1 CFA exam and fulfilled the CFA programme enrollment criteria to qualify for Level 2. It introduces more challenging calculations and emphasises analytical aspects.
The CFA Institute does not impose an extra fee for the Level 2 curriculum.
Core Curriculum Topics
Details CFA Level 2 Course Topics along with weightage are as follows:
| Study Topic | Aim of Study | Weightage % |
| Ethical and Professional Standards | Understanding ethics and related challenges | 15-20% |
| Financial Reporting and Analysis | Explanation of financial reporting procedures | 13-17% |
| Equity Investments | Understanding equity investments, markets, and analysis | 10-12% |
| Fixed Income | Learning about fixed-income securities and valuation | 10-12% |
| Corporate Issuers/Finance | Introduction to corporate governance and environmental/social considerations | 8-12% |
| Quantitative Methods | Exploring quantitative concepts in financial analysis | 8-12% |
| Economics | Analysing supply and demand, market structures, and macroeconomics | 8-12% |
| Portfolio Management and Wealth Planning | Fundamentals of risk and portfolio management | 5-8% |
| Derivatives | Valuation concepts and derivative market framework | 5-8% |
| Alternative Investments | Knowledge of hedge funds, commodities, private equity, real estate, and infrastructure | 5-8% |
CFA Level 2 Study Sessions and Exam Format
Chartered Financial Analyst Level 2 exam covers various functional areas through its study sessions and follows a specific exam format as described below:
Functional Areas (Study Sessions)
- Ethical and Professional Standards
- Quantitative Methods
- Economics
- Financial Reporting and Analysis
Exam Structure
- 22 item sets with vignettes
- 88 multiple-choice questions
- Morning Session: Covers ethics, quantitative methods, economics, and financial statement analysis
- Afternoon Session: Covers corporate issuers, equity, fixed income, derivatives, alternative investments, and portfolio management
- Each session lasts approximately 2 hours and 12 minutes
- An optional break between sessions
CFA Career Scope
Given its widespread recognition and strong demand in the corporate and finance sectors, individuals holding the CFA designation secure various positions, ranging from entry-level to top-tier management positions.
Following are some of the job roles a certified Financial Analyst may have:
Financial Analyst
A Financial Analyst is crucial in aiding organisations with strategic decision-making by analysing financial data. While the exact responsibilities of a Financial Analyst may vary, they typically perform the following vital functions:
- Develop financial models to forecast future economic outcomes, evaluate business scenarios, and conduct data analysis for informed decision-making.
- Analyse economic and market trends to provide valuable insights and contextual understanding for business decisions.
- Assist in organisation budgeting processes, contributing to effective financial planning and resource allocation.
- Prepare comprehensive written reports on financial status and offer recommendations based on in-depth analysis.
Salary Range: The starting salary of Financial Analyst is around 5 Lacs Per Annum. Source: Payscale
Risk Analyst
A Risk Analyst identifies, assesses, and monitors an organisation’s potential risks. They use historical data analysis to evaluate the impact of hazards.
Risk Analysts specialise in various types of risks, such as credit, liquidity, market, and operational risks.
The key responsibilities of a Risk Analyst include:
- Conducting reviews of financial and accounting documents
- Monitoring industry developments and relevant resources.
- Researching and analysing current events to anticipate their impact on the economy and the financial industry.
- Ensuring compliance with regulatory requirements.
- Developing contingency plans for unforeseen circumstances like market crashes or changes in government policies.
- Implementing risk hedging strategies.
Salary Range: The salary of Risk Manager is around 5.5 Lacs Per Annum. Source: Payscale
Chief Finance Officer
As the Chief Financial Officer, the CFO guarantees the company’s financial stability. They are responsible for managing teams, planning and analysing finances, accurately reporting, analysing data, and making strategic recommendations on many business-related topics.
Salary Range: The salary of Chief Financial Officer is around 35 Lacs Per Annum. Source: Payscale
Conclusion
The CFA programme is highly regarded in investment and finance, attracting individuals aspiring to work with prestigious institutions such as investment banks, hedge funds, portfolio management firms, mutual funds, commercial banks, and brokers.
The programme offers flexibility, allowing candidates to pursue it alongside their job or while attending college for other full-time programmes, all at an affordable cost.
Consider enrolling in The WallStreet School’s CFA coaching classes to kickstart your career.
FAQs
- Can a student from non-math background appear for CFA?
Although having maths in either 10+2 or graduation is not necessary for appearing in the CFA exam, having a basic understanding of the subject can smoothen the learning process.
- How many attempts do I get at clearing CFA Level 2?
Candidates have ample time to complete the CFA programme. Each level can be attempted twice yearly, with a maximum of six attempts per level. Any participation in the exam, even if incomplete, counts as one attempt.
- Is CFA better than MBA?
The CFA programme delves deeper into investment management, while traditional MBAs cover a broader range of subjects like management, marketing, and strategy. The choice between the two depends on one’s career aspirations in finance.
