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CFA Full Form: Is It Your Next Career Move?

Nikita Parmar

Updated on 28th November, 2024 , 14 min read

CFA Full Form: Is It

The CFA full form is Chartered Financial Analyst. CFA is a professional degree provided by the CFA Institute in the United States. The duration of a CFA course spans from 1.5 to 4 years. Candidates for CFA admission must be graduates from any discipline. Candidates in their last year of graduation, on the other hand, can apply for admission to CFA Level I. There is no admission examination for the CFA programme. Before beginning the course, applicants must first register themselves. Candidates must complete all three levels of the Chartered Financial Analyst programme. CFA Level I, CFA Level 2, and CFA Level 3 are the three levels. In India, CFA course fees range from INR 190,000 to INR 5,86,000. Banks, audit companies, legal firms, investment firms, and other industries are among those where applicants might find work after completing the course.

After completing the CFA course, candidates can work as Chartered Financial Analysts, Investment Managers, Portfolio Managers, and other positions. A Chartered Financial Analyst without a CA degree might earn between INR 4,00,000 and INR 20,00,000. Following graduation, a Chartered Financial Analyst is placed at prominent financial firms such as JP Morgan, PwC, HSBC, PBC, Ernst and Young, and others.

CFA

The following is the table showing the highlights of CFA 2024-25

Particulars

Details

CFA Full Form

Chartered Financial Analyst

Eligibility

Bachelor's Degree

CFA Course Fees

Rs. 50k - 1.50 lakh

Duration

2 - 3 years

Exam Mode

Online

Levels

3

CFA in its entirety The CFA Institute in the United States offers a professional Postgraduate certification programme called Chartered Financial Analyst. Equity Investment, Corporate Finance, Derivatives, Financial Reporting and Analysis, and other topics are covered in the course curriculum. The CFA programme equips students to be competent and ethical working professionals. In 2019, a record 24,997 CFA applicants (an increase of 16%) took the CFA level 1, level 2, and level 3 exams.

Also Check: What is Chartered Accountancy? Quick facts about CA.

Why Study CFA Course?

One of the most well-known business courses is Chartered Financial Analyst. Students who obtain a CFA degree receive almost the same amount of money and recognition as those who complete a CA or CS course.

Also read: How to Become Company Secretary (CS)

Chartered Financial Analysts are in high demand, and they will be able to work in a variety of financial institutions. The CFA Institute now offers a Certificate in Investment Performance Measurement as well as an Investment Foundations Program. The CFA course details provide a number of certificate programs, including the Certificate in ESG Investing, the Investment Foundation Certificate, and the Certificate in Investment Performance Certificate. It is best recognized for its Chartered Financial Analyst Course.

CFA Course Overview

  1. Candidates interested in working in the financial services business should enroll in the course.
  2. Candidates who desire to work as Portfolio Managers, Risk Managers, Financial Advisors, and other positions should take the CFA exam.
  3. The Chartered Financial Analyst program also helps individuals to transition from traditional degrees such as B.Com, M.Com, and others to a professional education that provides improved career opportunities.
  4. Candidates who aspire to become entrepreneurs and start their careers as financial advisors can also enroll in CFA certification courses.
  5. Candidates with prior finance work experience might enroll in this course to increase their career prospects.

When to Study CFA Course?

To participate in the CFA full form program, you must put in a lot of time and work. To choose the best time to undertake the course, candidates must consider the following factors are given below-

  1. Before applying for the Chartered Financial Analyst, candidates must have a total of 4 years of experience.
  2. Candidates must acquire financial resources to continue with the Chartered Financial Analyst program, which is fairly expensive, with typical costs ranging between INR 190,000 and INR 586,000.
  3. Because CFA course details are quite tough, working professionals must devote a significant amount of study time to finish the course.

CFA Admission Process 2024-25

The CFA certification course does not need an entrance examination for admission. In order to begin this course, applicants must first register with the CFA Institute.

The following are some of the CFA program's eligibility or prerequisite requirements-

  1. Admission to the CFA program is determined by a merit list.
  2. The CFA institute bases its entrance standards on the job experience in addition to graduation grades.
  3. Before they may register for the test, applicants must first create an account on the CFA website.
  4. Candidates can apply for scholarships at any time during the registration process.
  5. Candidates can choose between multiple test cycles based on their preferences for the various levels of examination.
  6. Candidates can register for the next level only after passing the previous level.

Eligibility Criteria for CFA Course

In order to qualify for the course, CFA candidates must satisfy the following CFA eligibility criteria-

  1. Candidates must have completed a bachelor's degree or similar program from a recognized university or institution.
  2. Candidates in their last year of their Bachelor's degree program may also apply for the CFA course.
  3. Candidates must, however, complete their Bachelor's degree before taking the CFA level 2 exam.
  4. Candidates must have a minimum work experience of 4 years or a combination of 4000 hours of work experience or higher education acquired over a minimum period of 3 sequential years before registering for the level 1 exam.
  5. An interesting CFA requirement is that people who are conducting an internship, articleship, or running their own business will be counted as work experience if you can verify that they are paid for it.

Work experience in the investing sector is not required, however, candidates must exhibit the following abilities:

  1. Business communications
  2. Critical thinking and problem-solving,
  3. Time management,
  4. Professional judgment,
  5. Analytical abilities, and Flexibility
  6. Another criterion of the CFA is that applicants have an international passport.

One of the most crucial requirements for Chartered Financial Analyst applicants is that they are proficient in English because the study material and tests will be administered in English. Candidates must also provide a professional compliance statement.

How to Apply for CFA Course 2024-25?

CFA tests are administered four times a year, in February, May, August, and November. The following are the processes for applying online for CFA exams-

  1. To register, candidates should go to the CFA website.
  2. Choose the Level of exam in which you wish to participate.
  3. Make an appointment to take the test.
  4. Choose the dates, hours, and test locations that works best for you from the options accessible on the official website.
  5. Fill in the information from your foreign travel passports, such as the date of birth, passport number, name, and address.
  6. Choose the qualifying requirements for the level of exam you are taking.
  7. Read and double-check policies and terms and conditions.
  8. Select study materials for the appropriate exam level.
  9. Payment choices for the CFA registration fee include credit card, debit card, check, and money order.
  10. Save and print the CFA exam application form.

CFA Courses Fees 2024-25

In the enrolling process, the CFA fees in India are INR 27,090. The following are the detailed CFA Course Fees-

Type of Registration

Fees for the CFA Exam in India (INR)

Early Registration

Rs. 69, 660

Standard Registration

Rs. 92,880

CFA

CFA Exam Pattern

The CFA test is given at several levels throughout the year. The weightage of the course content changes according to the test level. The passing percentage for the various levels is fairly low, hovering between 40 and 50 percent. The following table shows the details of exam pattern-

No. of Levels

No. of MCQs (Morning Session)

No. of MCQs (Evening Session)

Level 1

120

120

Level 2

60

60

Level 3

Essay type

60

CFA Level 1 Details

The details are tabulated below:

Eligibility

A graduate is required.

4 years of experience.

No. of Hours

The CFA institution recommends a minimum of 303 study hours.

CFA Level 1 Fees (INR)

Rs. 46k

Exam Pattern

The exam is broken into two 135-minute halves.

Result

60 days after exam

CFA Level 2 Details

The details are tabulated below:

Eligibility

Must pass CFA Level 1.

4 years of experience.

No. of Hours

The CFA institution recommends a minimum of 328 study hours.

Fees (INR)

Enrollment fee- Rs. 46k

Registration Fee- Rs. 71,600

Exam Pattern

The exam is broken into two 135-minute halves with 44 questions in each segment.

Result

60 days after exam

CFA Level 3 Details

The CFA Level 3 test is the ultimate level of certification for Chartered Financial Analysts. It focuses on asset management and wealth planning. The CFA Level 3 test lasts 4.5 hours in total, with each session lasting 2 hours and 15 minutes. There are also essay questions with varied points assigned to them.

CFA Course Syllabus

The entire CFA syllabus is separated into three levels. CFA Level 1, CFA Level 2, and CFA Level 3. The CFA level 1 syllabus consists mostly of fundamental principles from the academic fields of finance and investment. Candidates can advance to the next level only after completing the previous level's test. The program is created so that applicants get an in-depth understanding of areas such as investment depth, investment decision-making, financial accounting, derivatives, stock market, and so on.

Related Article: Best Courses After B.com.

CFA Course Subjects

The regular CFA curriculum comprises the following subjects:

CFA Subjects

Given Weight in CFA Level 1

Given Weight in CFA Level 2

Given Weight in CFA Level 3

Wealth Planning and Portfolio Management.

5-8

10-15

35-40

Alternative Investments

5-8

5-10

5-10

Derivatives

5-8

5-10

5-10

Fixed Income

10-12

10-15

15-20

Equity Investments

10-12

10-15

10-15

Corporate Issuers

8-12

5-10

NA

Financial Statement Analysis

13-17

10-15

NA

Economics

8-12

5-10

5-10

Quantitative Methods

8-12

5-10

NA

Professional and Ethical Standards

15-20

10-15

10-15

CFA Core Curriculum

The course content of the CFA  Exam, centers around ten key curriculum subjects. Although the CFA course syllabus includes almost the same subjects in each level of exam, the exam difficulty level increases with the level of exam.  The basic curriculum subjects are listed below-

Topics in the CFA 2024-25 Core Curriculum

Description

Wealth Planning and Portfolio Management.

This promotes a proper understanding of portfolio management and wealth planning ideas.

Alternative Investments

Hedge funds, private equity, real estate, infrastructure, and other themes are included.

Derivatives

It assists in understanding the fundamentals of derivatives as well as the derivatives market structure.

Fixed Income

Aids in learning about fixed income securities, risk concerns, maintenance measures, and measuring approaches.

Equity Investments

It is connected to the study of the economy's security markets, indices, and equity investment regions.

Corporate Issuers

It addresses corporate governance as well as stakeholder management.

Financial Statement Analysis

It describes the financial reports in full, as well as their standards and methodology.

Economics

This course studies supply and demand in individuals and businesses, as well as microeconomic concepts and market structure.

Quantitative Methods

Descriptive statistics, probability theory, and investment decision-making are all covered.

Professional and Ethical Standards

It teaches applicants about ethical behavior and the need for professionalism in the investing sector.

Reference Books for CFA Course 2024-25

Candidates can prepare for the CFA certification course by reading many reference materials mentioned below-

Name of Books

Authors

Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions

Pearl and Rosenbaum

2021 CFA Level I

Kaplan Schweser

Strategic Value Investing: Practical Techniques of Leading Value Investors

Stephen M. Horan, Robert R. Johnson and Thomas R. Robinson

When Genius Failed: The Rise and Fall of Long Term Capital Management

Roger Lowenstein

The Cartoon Guide to Statistics

Larry Gonick and Woollcott Smith

CFA Level I

Bhupesh Ananad

The Handbook of Fixed Income Securities

Frank J. Fabozzi

Top CFA Institutes 2024-25

Previously, the CFA Institute was known as the Association for Investment Management and Research (AIMR). The CFA Institute ensures that investment professionals meet high-quality requirements through its tests and certificates. In addition, the CFA Institute offers a Certificate in Investment Performance Measurement and an Investment Foundations Program. The CFA Institute is managed by a 20-member board of directors, each of whom is chosen for a three-year term. This organization's headquarters are in Charlottesville, Virginia, and it maintains regional offices in New York, Beijing, Hong Kong, Mumbai, London, and Brussels. It is recognized as a standard of choice by 31,000 investment institutions.

The CFA Institute provides a number of certificate programs, including a Certificate in ESG Investing, an Investment Foundation Certificate, and a Certificate in Investment Performance Certificate. It is best recognized for its Chartered Financial Analyst Course. The CFA Institute has graduated approximately 178,000 Chartered Financial Analysts, who have an impact on 162 markets (nations) worldwide.

Colleges offering CFA course in India 2024-25

The list of universities offering the Chartered Financial Analyst program, as well as their tuition rates, is shown below-

College Name

Average Fess (INR)

International College of Financial Planning, New Delhi

Rs. 40k

Global Centre for Entrepreneurship and Commerce (GCEC), Jaipur

Rs. 1.09 lakh

Central India Institute of Management Studies, Jabalpur

Rs. 32,500

Narayana Business School, Ahmedabad

Rs. 1.25

International College of Financial Planning, Mumbai

Rs. 45k

Shri Chimanbhai Patel Institute of Professional Training, Ahmedabad

Rs. 65k

CFA Course Comparison

CFA is a professional degree that many applicants pursue after college in order to begin their career as a Chartered Financial Analyst. Candidates sometimes mix up the terms CFA, CA, and MBA. The sections that follow compare the CFA course to the CA and MBA courses based on a few similar factors to see which offers the best employment prospects and outcomes are as follows-

1. CFA vs CA

CFA (Chartered Financial Analyst) and CA (Chartered Accountancy) are both outstanding courses that are distinct in their own right. Traditionally, applicants in India chose the CA course, but in recent years, the CFA degree has been able to develop a place among student groups.

The following are some of the significant difference between CFA and CA-

Parameters

CFA

CA

Full-Form

Chartered Financial Analyst

Chartered Accountancy.

Conducting Body

CFA Institute

ICAI

Average Fees (INR)

Rs. 1.90 - 5.86 lakh

Rs. 50k - 3 lakh

Details

It is designed to provide standard training and instruction in the field of financial and investment analysis.

The test can be qualified after passing the first three levels, which are Level 1, Level 2, and Level 3.

CA is a recognized certification in commerce and accounting that may be achieved after passing many rounds, including CA Foundation, CA Intermediate, and CA Final.

Average Qualification Time

1.5 - 4 years

4 - 5 years

Average Salary (INR)

Rs. 4 - 20  lakh

Rs. 5 - 20 lakh

Global Recognition

Yes

No

2. CFA vs CMA

Candidates may find it difficult to pick between CFA and CMA because both are well-known management and finance certification courses. CFA courses provide financial management, risk management, and other financial management abilities, whereas CMA courses primarily teach accounting management and develop accounting skills.

The following table contains comparisons between CFA and CMA based on several parameters-

Parameters

CFA

CMA

Full-Form

Chartered Financial Analyst

Certified Management Accountants

Conducting Body

CFA Institute

Institute of Management Accountants (IMA), USA.

Average Fees (INR)

Rs. 1.90 - 5.86 lakh

Rs. 4 - 41k

Details

It is designed to provide standard training and instruction in the field of financial and investment analysis.

The test can be qualified after passing the first three levels, which are Level 1, Level 2, and Level 3.

The CMA course is broken into three papers: CMA Foundation, CMA Intermediate, and CMA Final.

The CMA courses primarily include Management Accounting, Corporate Finance, Risk Management, and a variety of other topics.

Eligibility

Candidates must hold a bachelor's degree in any field from a recognized university, and current students are also eligible. One may also request four years of similar job experience.

Candidates must have passed the CMA Foundation exam and have finished their 10+2 in any stream from a recognized board. Work experience in the appropriate sector may also be requested.

Average Qualification Time

1.5-4 years

Around 3 years

Average Salary (INR)

Rs. 4 - 20  lakh

Rs. 6 - 50 lakh

3. CFA vs FRM

CFA and FRM are well-known certificate programs. The CFA program gives an in-depth understanding of financial and investment management, as well as other ideas. However, FRM, or Financial Risk Management, teaches Quantitative Analysis, Financial Markets and Products, and a variety of other ideas

The following table compares the differences between CFA and FRM based on numerous parameters-

Parameters

CFA

FRM

Full-Form

Chartered Financial Analyst

Financial Risk Manager

Conducting Body

CFA Institute

Global Association of Risk Professionals (GARP)

Average Fees (INR)

Rs. 1.90 - 5.86 lakh

Rs. 29k - 57k

Overview

It is designed to provide standard training and instruction in the field of financial and investment analysis.

The test can be qualified after passing the first three levels, which are Level 1, Level 2, and Level 3.

The course covers Financial Markets, quantitative analysis, investment management, and other relevant topics in depth.

 It is broken into two parts: Part I and Part II.

Eligibility

They must have a bachelor's degree in any field (final year students are also eligible).

It is possible that 4000+ hours of work experience will be required.

Must have a bachelor's degree in a relevant discipline and job experience in the field.

Part I must also be completed in order to be eligible for FRM Part II.

Average Qualification Time

Around 4 years

Around 5 years

Average Salary (INR)

Rs. 8 - 20 lakh

Rs. 7 - 21 lakh

4. CFA vs MBA

The MBA degree is popular among graduates since it provides them with a higher income and a better earning job upon completion. The CFA, on the other hand, allows applicants to study investment management, financial accounting, and other topics. The CFA certification is also highly valued across the world and can help you land fantastic positions in the future.

The following are the distinctions between MBA and CFA based on the factors listed below-

Parameters

CFA

MBA

Full-Form

Chartered Financial Analyst

Master of Business Administration

Conducting Body

CFA Institute

Different Universities

Average Fees (INR)

Rs. 1.90 - 5.86 lakh

Rs. 50k - 3 lakh

Details

It is designed to provide standard training and instruction in the field of financial and investment analysis.

The test can be qualified after passing the first three levels, which are Level 1, Level 2, and Level 3.

CA is a recognized certification in commerce and accounting which may be achieved after passing many rounds, including CA Foundation, CA Intermediate, and CA Final.

Average Qualification Time

1.5-4 years

4-5 years

Average Salary (INR)

Rs. 4 - 20  lakh

Rs. 5 - 20 lakh

Global Recognition

Yes

No

Also read more about the difference between CA, FCA and CFA. Click Here.

Know more about CAT Books here.

CFA Jobs and Salary 2024-25

After completing the CFA certification course, a Chartered Financial Analyst can work as a Business Consultant, Investment Manager, Private Banker, CFO, and many other professions. Candidates may expect to earn between INR 8,00,000 and INR 20,00,000. The following table gives details about the CFA pay in India for various job categories below-

Job Profile

Description

Average Salary (INR)

CFO

The CFO oversees all of the organization's financial resources and evaluates the risks and opportunities of various endeavors and  works with several subordinates to make the greatest option for the firm.

Rs. 34.46 lakh

Chartered Financial Analysts

They are in charge of making financial decisions for the organization, such as investment management and stock performance tracking, and do research and keep track of the financial positions of various firms and people.

Rs. 4 - 16 lakh

Market Research Analysts

They gather market data from consumers, rivals, and so on.

They assess the overall market circumstances and advise the company's top executives on the next course of action.

Rs. 3.37 lakh

Portfolio Manager

Their primary responsibility is to construct and manage the investment portfolios of various customers and strive to identify market trends and maximize their clients' return on investment.

Rs. 10.86 lakh

Risk Manager

They identify financial risks that the organization may encounter in the future and work to develop a way to lessen the risk and also assess the financial risk of new projects.

Rs. 9.98 lakh

Private Bankers

They assist their particular clients in maintaining their personal accounts, financial risks, and services and also market the bank's different financial services to individual consumers.

Rs. 6.24 lakh

Investment Manager

Their primary responsibility is to advise organizations or individual customers on different investment possibilities such as purchasing and selling bonds, mutual funds, securities, and stock.

Rs. 13 lakh

Business Consultants

They are involved with several parts of the business such as finance, accounting, marketing, operations, and so on, and are concerned with the business's general functioning and effectiveness.

Rs. 9.89 lakh

Also read more about the- CA Salary In India.

Top recruiters of Chartered Financial Analyst (CFA) Course

The following are the top Chartered Financial Analyst recruiters-

  1. JP Morgan
  2. PwC
  3. Citigroup
  4. HDFC Bank
  5. ICRA
  6. ITC
  7. The Goldman Sachs Group Inc.
  8. Hindustan Unilever Ltd.
  9. Earnst and Young
  10. SBI Bank
  11. HSBC
  12. Credit Suisse
  13. Deloitte
  14. Axis Bank
  15. Aditya Sun Life
  16. Emami Agrotech Ltd
  17. ICICI Bank
  18. Reliance Industries Limited
  19. Bharti Airtel
  20. Crisil

CFA Important Exam Tips 2024-25

The following is the list of CFA exam tips-

  1. Look for the prior year's question papers, which will be really useful.
  2. Create a strategy for studying for the CFA tests.
  3. Spend at least 13 hours every week for at least 6 months preparing.
  4. Make it a habit to use diverse memory strategies.
  5. Maintain a healthy lifestyle by eating nutritious meals and getting 8 hours of sleep every day, especially before the exam.
  6. Cover all test subjects at least one month prior to the exam's start date.
  7. To relieve exam stress, take advantage of the different mock examinations accessible.
  8. Visit the exam center a day before the exam to minimize last-minute uncertainty about where to go.
  9. Before the exam, have a good night's sleep.
  10. To prevent traffic, arrive at the exam center an hour early.
  11. On the day of the exam, be calm.

Frequently Asked Questions

What are CFA expectations from the Level I examination?

Ans. The CFA Level 1 Exam assesses knowledge in ten areas, including Ethical and Professional Standards, Economics, Quantitative Methods, Portfolio Management, and Asset Classes. In November 2021, the passing rate was 27 percent, compared to an average of 42 percent from 1963 to 2021.

Is there a gap between CFA Level 1 Session 1 and Session 2?

Ans. Yes. There is a 30-minute pause between Session 1 and Session 2 of the CFA Level 1 test.

How much time should I devote to studying for the Level 1 exam?

Ans. According to the CFA Institute, the typical successful applicant spends 303 hours preparing for the Level I test.

How long do I have to wait after failing the CFA Level 1 Exam before I can retake it?

Ans. Candidates who fail their CFA Level 1 test will have to wait at least six months to retake it beginning in 2021.

What is the salary of CFA?

Ans. In India, a Chartered Financial Analyst might make between INR 350,000 and INR 35,00,000 per year.

What is CFA’s full form?

Ans. CFA is an abbreviation for Chartered Financial Analyst. The CFA Institute bestows a charter to financial and investment professionals who have finished their program of study, passed all three levels of their tests, and satisfied additional professional standards.

Is CFA more difficult than CA?

Ans. So it truly depends on whether you find the CFA or CA test more difficult. Let’s not forget that Indian courses and examinations are infamous for being exceedingly demanding for pupils. While, because CA is a home-grown test and CFA is not, it is more challenging than the latter.

Who qualifies for CFA?

Ans. If you are in the last year of your bachelor’s program, already hold a bachelor’s degree, or have professional working experience totaling up to four years, you are eligible.

Is CFA superior to MBA?

Ans. The CFA Course teaches you all you need to know about investment management and financial accounting. In the case of an MBA, the knowledge would be primarily focused on the concept of managing a corporate organization or department. As a result, the learning outcomes of the courses are entirely different. So if CFA is better than MBA depends on the candidate’s interests.

Is CFA math required?

Ans. Yes, math is necessary to pass the CFA test. To comprehend the statistics and other math-based topics of the CFA course, applicants must have a solid understanding of math.

Is a passport necessary to register for the CFA?

Ans. Yes, for CFA registration, the candidate must have an international passport.

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