{"id":3280,"date":"2023-12-20T11:59:18","date_gmt":"2023-12-20T06:29:18","guid":{"rendered":"https:\/\/www.thewallstreetschool.com\/blog\/?p=3280"},"modified":"2023-12-20T11:59:18","modified_gmt":"2023-12-20T06:29:18","slug":"a-complete-guide-to-becoming-a-cfa","status":"publish","type":"post","link":"https:\/\/www.thewallstreetschool.com\/stg-new\/a-complete-guide-to-becoming-a-cfa\/","title":{"rendered":"A Complete Guide to Becoming a CFA"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are an aspiring CFA charter holder, this blog will guide you on <\/span><span style=\"font-weight: 400;\">how to become a Chartered Financial Analyst<\/span><span style=\"font-weight: 400;\"> (CFA). We\u2019ll cover the fundamentals of <\/span><span style=\"font-weight: 400;\">how to get a CFA certification<\/span><span style=\"font-weight: 400;\">, including what CFA is and why it is such a coveted certification for finance and investment professionals.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is CFA?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">CFA is the abbreviated form of Chartered Financial Analyst. Candidates with a background in accounting, finance, business or economics primarily seek the CFA certification.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CFA Institute awards the CFA charter to candidates who complete the CFA program and have the required work experience requirements.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To become a CFA, you must follow specific steps, starting with enrolling in a CFA program. Read on to learn more about <\/span><span style=\"font-weight: 400;\">how to get a Chartered Financial Analyst certification<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Do I Become a CFA<\/span><span style=\"font-weight: 400;\">?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To become a CFA, you have to complete the following steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-weight: 400;\">Enrol in the CFA program<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At least enrolled for an undergraduate program<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">B.Com\/M.Com<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Graduate, Post Graduate (M.Com\/MBA)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CA\/CA Inter<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The exam window should be 23 months or less before graduation<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You can only appear for <\/span><a href=\"https:\/\/www.thewallstreetschool.com\/cfa-level-2-coaching\/\"><span style=\"font-weight: 400;\">CFA Level II<\/span><\/a><span style=\"font-weight: 400;\"> and Level III after completing <\/span><a href=\"https:\/\/www.thewallstreetschool.com\/cfa-level-1-coaching\/\"><span style=\"font-weight: 400;\">CFA Level I<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apart from these, the candidate must have:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An international travel passport<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Live in a participating country<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Be ready to take the CFA exams in English<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-weight: 400;\">Applying for the CFA certification exams<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">After checking the eligibility, it is time for the CFA application process.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You must create an account by registering on the CFA Institute\u2019s official website.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fill in the necessary details and choose your examination centre.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Check the&#8217; Scholarship&#8217; section to apply for a scholarship.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-weight: 400;\">Clearing all three levels of the CFA exams<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To become a successful CFA charter holder, you must pass all three CFA exams &#8211; I, II, and III.<\/span><\/p>\n<p><b>Curriculum<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-checked=\"false\" aria-level=\"1\"><b>Chapter 1<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><b>Corporate Finance<\/b><span style=\"font-weight: 400;\"> &#8211; 8-12% weightage in Level 1; 5-10% in Level 2; not tested in Level 3<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-checked=\"false\" aria-level=\"1\"><b>Chapter 2<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><b>Financial Reporting Analysis<\/b><span style=\"font-weight: 400;\"> &#8211; 13-17% weightage in Level 1; 10-15% in Level 2; not tested in Level 3<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-checked=\"false\" aria-level=\"1\"><b>Chapter 3<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><b>Equity <\/b><span style=\"font-weight: 400;\">&#8211; 10-12% weightage in Level 1; 10-15% in Level 2; 10-15% in Level 3<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-checked=\"false\" aria-level=\"1\"><b>Chapter 4<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><b>Alternative Investment<\/b><span style=\"font-weight: 400;\"> &#8211; 5-8% weightage in Level 1; 5-10% in Level 2; 5-10% in Level 3<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-checked=\"false\" aria-level=\"1\"><b>Chapter 5<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><b>Derivative <\/b><span style=\"font-weight: 400;\">&#8211; 5-8% weightage in Level 1; 5-10% in Level 2; 5-10% in Level 3<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-checked=\"false\" aria-level=\"1\"><b>Chapter 6<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><b>Fixed Income<\/b><span style=\"font-weight: 400;\"> &#8211; 10-12% weightage in Level 1; 10-15% in Level 2; 15-20% in Level 3<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-checked=\"false\" aria-level=\"1\"><b>Chapter 7<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><b>Quantitative Techniques<\/b><span style=\"font-weight: 400;\"> &#8211; 8-12% weightage in Level 1; 5-10% in Level 2; not tested in Level 3<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-checked=\"false\" aria-level=\"1\"><b>Chapter 8<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><b>Portfolio Management<\/b><span style=\"font-weight: 400;\"> &#8211; 5-8% weightage in Level 1; 10-15% in Level 2; 35-40% in Level 3<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-checked=\"false\" aria-level=\"1\"><b>Chapter 9<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><b>Ethics <\/b><span style=\"font-weight: 400;\">&#8211; 15-20% weightage in Level 1; 10-15% in Level 2; 10-15% in Level 3<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-checked=\"false\" aria-level=\"1\"><b>Chapter 10<\/b><span style=\"font-weight: 400;\"> &#8211; <\/span><b>Economics <\/b><span style=\"font-weight: 400;\">&#8211; 8-12% weightage in Level 1; 5-10% in Level 2; 5-10% in Level 3<\/span><\/li>\n<\/ul>\n<p><b>Exam structure and format<\/b><b><\/b><\/p>\n<ul>\n<li aria-checked=\"false\" aria-level=\"1\"><b>Level I<\/b><\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Frequency of exam<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4 times yearly in February, May, August and November<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Format of exam questions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Multiple choice questions (MCQ)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Exam structure &amp; duration<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Level 1 exams are in 2 sessions spanning 4.5 hours with 180 MCQ<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Session 1<\/b><span style=\"font-weight: 400;\"> &#8211; 90 MCQs &#8211; 2 hours 15 mins &#8211; Questions from Ethics, Economics, Quantitative Methods and Financial Reporting and Analysis<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Session 2<\/b><span style=\"font-weight: 400;\"> &#8211; 90 MCQs &#8211; 2 hours 15 mins &#8211; Questions from Fixed Income, Corporate Finance, Alternative Investments, Equity, Portfolio Management and Derivatives<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Results<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Within 60 days of the Level I examination via email<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b><\/b><\/p>\n<ul>\n<li aria-checked=\"false\" aria-level=\"1\"><b>Level II<\/b><\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Frequency of exam<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3 times yearly in May, August and November from 2023<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Format of exam questions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Item-set-based multiple choice questions (MCQ), where each item set has 4-6 questions. Each question carries 3 points.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Exam structure &amp; duration<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Level 2 exams are in 2 sessions spanning 4 hours 24 minutes with 88 MCQ in item-set format.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Session 1<\/b><span style=\"font-weight: 400;\"> &#8211; 44 item-set MCQs &#8211; 2 hours 12 mins<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Session 2<\/b><span style=\"font-weight: 400;\"> &#8211; 44 item-set MCQs &#8211; 2 hours 12 mins<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Results<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Within 60 days of the Level II examination via email<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b><\/b><\/p>\n<ul>\n<li aria-checked=\"false\" aria-level=\"1\"><b>Level 3<\/b><\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Frequency of exam<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Twice yearly in February and August from 2023<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Format of exam questions<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A mix of item-based multiple choice questions (MCQ) and constructed response (essay) questions<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Exam structure &amp; duration<\/span><\/td>\n<td><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Results<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Within 90 days of the Level II examination via email<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">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 &#8211; the more, the better.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-weight: 400;\">Acquiring required work experience<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Relevant work experience can include a wide range of investment and financial experience covering corporate finance, trading, etc.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-weight: 400;\">Submitting reference letters<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-weight: 400;\">Final application\u00a0<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">CFA Program Costs<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-weight: 400;\">One-time enrolment fee<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You will have to pay a one-time enrolment fee of USD 350 while registering for the CFA program.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-weight: 400;\">Registration costs<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-weight: 400;\">Rescheduling fee<\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you want to reschedule your exam appointment, you must pay a fee of USD 250.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">With this blog, you must have developed a fair idea of <\/span><span style=\"font-weight: 400;\">how to become a chartered financial analyst<\/span><span style=\"font-weight: 400;\"> (CFA). With this esteemed designation, many lucrative career opportunities open up with investment companies, financial security firms, banks, MNCs, etc.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The WallStreet School offers <\/span><a href=\"https:\/\/www.thewallstreetschool.com\/cfa-coaching-program\/\"><span style=\"font-weight: 400;\">CFA classroom bootcamp<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.thewallstreetschool.com\/cfa-online-course\/\"><span style=\"font-weight: 400;\">online CFA coaching<\/span><\/a><span style=\"font-weight: 400;\"> to CFA aspirants. We offer online and classroom coaching via recorded video classes, study planners, mock tests, summary sheets and explanatory notes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Enrol now for the program at The WallStreet School!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Contact us via <\/span><a href=\"http:\/\/info@thewallstreetschool.com\"><span style=\"font-weight: 400;\">email<\/span><\/a><span style=\"font-weight: 400;\"> or phone (<\/span><a href=\"tel:+91-9953729651;\"><span style=\"font-weight: 400;\">+91-9953729651<\/span><\/a><span style=\"font-weight: 400;\">) for further queries.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">FAQs<\/span><\/h2>\n<ul>\n<li aria-level=\"1\"><b>How much time will I need to become a CFA?<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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.\u00a0\u00a0<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>Is Articleship mandatory for CFA?<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">No, Articleship is not mandatory for CFA. CA Articleship is the training needed by ICAI and is not applicable for CFA.\u00a0<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>Which specialisation in graduation is best for CFA?<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a complete guide on how to become a Chartered Financial Analyst (CFA) and all you need to know before pursuing this certification.\u00a0<\/p>\n","protected":false},"author":38,"featured_media":3281,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[688],"tags":[],"class_list":["post-3280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cfa"],"_links":{"self":[{"href":"https:\/\/www.thewallstreetschool.com\/stg-new\/wp-json\/wp\/v2\/posts\/3280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thewallstreetschool.com\/stg-new\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thewallstreetschool.com\/stg-new\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thewallstreetschool.com\/stg-new\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thewallstreetschool.com\/stg-new\/wp-json\/wp\/v2\/comments?post=3280"}],"version-history":[{"count":0,"href":"https:\/\/www.thewallstreetschool.com\/stg-new\/wp-json\/wp\/v2\/posts\/3280\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thewallstreetschool.com\/stg-new\/wp-json\/wp\/v2\/media\/3281"}],"wp:attachment":[{"href":"https:\/\/www.thewallstreetschool.com\/stg-new\/wp-json\/wp\/v2\/media?parent=3280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thewallstreetschool.com\/stg-new\/wp-json\/wp\/v2\/categories?post=3280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thewallstreetschool.com\/stg-new\/wp-json\/wp\/v2\/tags?post=3280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}