CFA Exam Levels, Syllabus and Format
The CFA Program consists of three levels each of which has its specific focus and curriculum, designed to build up in-depth knowledge of finance and analytical skills. The exam levels and their formats include:
I. CFA Level I
Level I of the CFA program focuses on building a foundation in basic concepts and tools used in investment valuation and portfolio management. It aims to cover 10 basic topics such as ethical and professional standards, quantitative methods, economics, financial reporting and analysis, corporate finance, equity investments, fixed income, derivatives, alternative investments, and portfolio management. Level I examines the candidate’s understanding of ethical standards and professionalism. The Level I exam is conducted twice a year in June and December. The exam is of multiple-choice format with 180 questions designed to judge the candidate’s knowledge application. The following table helps in understanding the subjects along with their weightage in the examination:
|
Subject Name |
Total Weightage in the Exam (%) |
|---|---|
|
Ethical and Professional Standards |
15-20% |
|
Quantitative Methods |
6-9% |
|
Economics |
6-9% |
|
Financial Statement Analysis |
11-14% |
|
Corporate Issuers |
6-9% |
|
Portfolio Management |
8-12% |
|
Equity Investments |
11-14% |
|
Fixed Income |
11-14% |
|
Derivatives |
5-8% |
|
Alternative Investments |
7-10% |
II. CFA Level II
Level II focuses on asset valuation and gets deeper into the application of the tools and concepts learned in Level I. It aims to provide analytical insights for the analysis of financial statements and techniques for valuing investments.The Level II exam is conducted thrice a year in May, August, and November. It consists of 22-item set questions, also known as “mini-cases,” designed to test how well a candidate applies the knowledge to real-world scenarios. It also consists of 88 multiple-choice questions.
|
Subject Name |
Total Weightage in the Exam (%) |
|---|---|
|
Ethical and Professional Standards |
10-15% |
|
Quantitative Methods |
5-10% |
|
Economics |
5-10% |
|
Financial Statement Analysis |
15-20% |
|
Corporate Finance |
5-10% |
|
Equity Investments |
15-20% |
|
Fixed Income |
10-15% |
|
Derivatives |
5-10% |
|
Alternative Investments |
5-10% |
|
Portfolio Management and Wealth Planning |
10-15% |
III. CFA Level III
Level III focuses on the concepts and analytical tools used in portfolio management and wealth planning. The entire curriculum of Level III emphasises portfolio building, strategies for wealth and portfolio management, application of tools and concepts, and Applying analytical skills for understanding complex financial markets. The Level III exam is conducted twice a year in February and August. It consists of item sets accompanied by multiple-choice questions and essay questions that test the candidate’s critical thinking skills in the context of portfolio management and wealth planning.
|
Subject Name |
Total Weightage in the Exam (%) |
|---|---|
|
Ethical and Professional Standards |
10-15% |
|
Quantitative Methods |
NA |
|
Economics |
5-10% |
|
Financial Statement Analysis |
NA |
|
Corporate Finance |
NA |
|
Equity Investments |
10-15% |
|
Fixed Income |
15-20% |
|
Derivatives |
5-10% |
|
Alternative Investments |
5-10% |
|
Portfolio Management and Wealth Planning |
35-40% |