All You Want To Know About CFA Level 1 Exam

CFA (Chartered Financial Analyst) is a globally recognized credential. It is offered to financial and investment professionals by the CFA institutes in India and abroad. Earning a CFA charter is one of the most prestigious certifications in the field of investment banking. 

There are three levels of CFA exam that a candidate has to get through to obtain this certification. The CFA Level 1 exam is conducted in 2 parts. Each part is 3 hours long and includes 120 multiple-choice questions each. Other fine details of the CFA level 1 exam include:-

The CFA institute offers CFA Level 1 exam twice a year, i.e. in June and December at their test centers located across the globe. To take the exam, a candidate must register for the exam by visiting the CFA institute website. To complete the exam registration process, candidates must provide relevant education information, professional conduct statement, their electronic signature, and the required fees. Early registrations are low priced whereas late registrations require a candidate to pay more for the exam.

The syllabus of CFA Level 1 exam majorly focuses on current curriculum and simple analysis using investment tools. It is mainly designed to check the knowledge of students on various concepts pertaining to finance and investment.  

Overview of Important topics included in CFA Level 1 exam

Based on the percentage of marks assigned for each section, there are 6 very important topics that you must focus on:-

1. Financial Reporting Analysis: This topic focuses on financial reporting, financial reports analysis in investment decision making, the major financial statements, management discussion, and the analysis of results.

 

2. Quantitative Analysis: This topic equips students with several means of quantitative analysis like time value of money, descriptive statistics, and future possibilities. It also exemplifies the quantitative techniques that are essential in financial analysis.

 

3. Ethics and Professional Standards: This module focuses on the essential nitty-gritty of global investments by promoting the highest standards of ethics, education, reputation, trust, confidence and value which are important for a strong and healthy industry.

 

4. Economics: This segment focuses on the microeconomic principles specifically used to define the marketplace behavior of consumers and firms. 

 

5. Fixed Income Analysis: This section focuses on understanding the income curve that affects portfolio strategies and risk management. It includes understanding future and implied spot rates, duration and convexity.

 

6. Equity Investment: This topic describes additional valuation methods for estimating a company’s core value.

 

So, if you have made up your mind by now to appear in the CFA level 1 exam, the aforementioned details can be of great value to you. To know more about the CFA level 1 exam and to make your preparations more efficient, it is prudent to sign up for a CFA preparatory program offered by several reputed financial institutions in India and abroad.