Everything you need to know about CFA Program!

Hello 🙂 My name is Utkarsh Jain and the purpose of this video presentation is to understand what is CFA why you should do or you should not do CFA and if at all you decide to go further with the program what should be the exact the process for following it so this presentation would cover
five importing areas the first area would be what is CFA? then be would talk about the coasting part of in terms of what is the fees that would be required we would talk about what kind of career opportunities that exist after having done this program then we would spend some time to understand what is the CFA curriculum which all subject you would be studying and what would be the level of depth and then finally we would look at what
is the format and type of the examination so let us start with question n. one what is CFA? the full form of CFA is Chartered Financial Analyst CFA now there is a institute in US which is called chartered financial institute chartered financial analyst institute
which is based in Virginia this institute simultaneously conducts this program across the globe and this program is conducted over the format of 3 levels ok so this three levels or this three exams are called as Level I Level II Level III so now the first exam which is CFA Level I is conducted twice in a year so this exam can be written in either in June or it can be written in December Where as the Level II and Level III exams written only once in a year so you can write Level II only in June and you can write Level III only in June again so let us say that you start your Level I in the December in the December exam in that case december to june would be a window period of 6 months and then June to June would be window period of twelve months which means that this program can be finished with a period of eighteen months where as if you start your exams in
june so if you take a your Level I in June then june to june and then again june to june so this
would take you a window period of twenty four months so if you would see two type of people in the industry the first one would boost about having fast everything in the first two and having finished in eighteen months and the second category would say that even i have pass everything in the first go but I have taken 24 months none of them are laying the one who says i finished in
eighteen months must have started in december and the other category of people must
have started in june now what is the eligibility the eligibility writing for level I exam is that you should be a graduate or you should be a final year of graduation student so if you are in the final year of
engineering or final year of B. com, BBA then you are eligible for this exam the second important eligibility is that
you should have valid international passport now without having a passport you would not be allowed to registered for the exams in the first place so having passport is
mandatory a lot of people would ask this question why passport is required and i feel there are two possible reasons why this would be required the first very apparent reason is that this is an international ID proof CFA institute would feel bit reluctant to use other ID Proofs and the second apparent apparent reason is the second reason which i feel is that the demand and supply of candidates is managed on a global level so CFA institute wants to avoid scenario whethere it is an excess supply let’s say in China and excess demand in INDIA so they would want people who are
internationaly mobile so that that demand and supply analysis can be
managed on a global scale now we would come on to the prizing part there are three different slabs in which
you can register for level one and think of this as some sort of early bird discount so if you registered very early you coming to the first slap and then the fees is lesser if you registered very close to exam then the last slap whether fees would be substantially higher and then in the seconds slap the fees is some where moderate so now if you registered here in the first slap its almost 8 to 9 months before the exam and it kind of kills your flexibility where as if registered in the last slap then again what is happening in this particular
slabs is the fee increases all most by 300, 300, and 50 dollars and it becomes a bit expensive so the slab that we generally recommend is a second slop and the current level of fees for this slap is somewhere around 1140$ so for December exam the last date is in this particular year is somewhere close to August and for June that Date would be somewhere in the month of February so this eleven forty dollars let’s say with current exchange rate in Indian Equivalent would be Indian Equivalent would be sixty thousand rupees now for Level II and Level III you don’t have to pay that registration fees so you have to pay only your exam fee which is seven hundred & seven hundred dollars so in Indian rupees lets say this would be slightly on the highest side would be about 42000 rupees and again and another 42000 rupees that means the cumulative cost of this
program is going to be less than one point five
lacs in entirety including all the tree Levels now the program is realy excellent there are excellent job opportunities
excellent growth opportunities but if you’d asked me what is that one
thing that i do not like about the program that is this component this 1140$ is made of two parts the first part is again seven hundred
and the second part is four hundred and forty now this 440 is your one time registration fee minimum which once you enroll here then you don’t have to repay again but the seven hundred which you can see is constant for all the three Levels this is your exam fee and then the Risk with this exam fee is
that if you enroll for an exam and if you do not pass then you would be required to pay this
fees again so in a simple language for Indian’s what it means is that if you enroll and if you are not passing then your loosing your 42000 you have to repay that amount again and there fore the strategy is that you should enroll only when you feel extremely comfortable that you’re going to pass examination and we have Developed certain modules where in be help you understand before
registering for the exams as to what would be the what would be your chances of passing the exam in the coming months so let’s go back to our agenda again we have discussed What is CFA we also looked at how much does it cost now let’s understand what kind of career opportunities are available once you are a CFA now we would look at it from two perspective one from an exam perspective and secondly in terms of the profile perspective now the first thing that you would know is that when you do a professional program let us say when I did my chartered accountancy it would take you through a flat four and a half for five years now if you’re somewhere here in between and you have not finished
you CA or CS or any other professional program the value in the market would not be so
high because for a professional program the value would come when you passed
the final exam here the good thing with CFA is that there recognition comes in steps or stages so what it means is that if this is your level one this is your Level II and this is your Level III if you pass Level I there is a ready-made job market available for Level I qualified candidate you get a passing certificate and that
you can put on your CV so when you pass Level I you’ll become
CFA Level II candidate after having enroll for Level II exams so after Level I you can pick up a job the Level II would get you a better
quality and better profile and of course Level III would get you at the cream positions so this was the first aspect now the second aspect from the profile perspective CFA is a kind of very generic certification and the benefit with this kind of
certification is that it opens a spectrum of opportunities from your career perspective so if you feel that you want to work in
corporate finance CFA is going to help you tremendously so meaning of corporate finance would be working as a part for a company and helping them either raise money through bank raise money through equity or helping them to invest into various business related projects the second important area where CFA work permanently is investment banking so again in investment banking a lot
of people would prefer to work in areas like vench capital or or private equity are they would walk into mergers and acquisitions or merchant banking areas so that was that a spectrum of sectors and opportunities which are available where you can work after CFA the third big area is the research so again you can either become a equity research analyst you can work for valueation of equities or you can get into bond markets or you may like you can get into Derivatives or alternatives investment apart from that the other major segment of industry which is becoming very dominant and which is opening up a lot of
opportunities for CFA is KPO knowledge processing outsource so there are lot of centers through out the country where there are establish KPO have inside and these people would do certain outsource who are from lets say US client or European Clients now the benefit here is that they would need it someone who was got good knowledge of U_S_ equity market or US bond markets and this
is where a CFA fits in perfectly so we have seen that in the last two
years KPO has been extremely aggressive
to recrute CFA candidates and even a Level I candidate is being
paid very handsomely in KPO articles and finally most important one is the indian IT Sector so if you’re an engineer or if you intent to work with one of the IT company you would be aware that Indian IT
companies would mostly have clients either from the banking and finance services
sector or pharmacetical which is health care so having CFA on your cv
would prove your employer that you have a very strong domain knowledge of your client business and that will help you secured good position in one of the IT companies infact if your CFA chartered holder you kind of get resume of a IT company so when an IT company is pitching for a project to client they would say that 20 or 25 CFA chartered holders would be working on that project and that is always an advantage from a companies perspective so these are the various career opportunities now let us discus about what would be the subject covered and what would be the level of depth so let’s first discuss about the
subject that we would be looking at there are 10 subject and the level of difficulty the 10 subjects remain constant for all the three levels the only difference is that the level of
difficulty increases so for example now let’s divide this subject in to different categories the first subject is equity investments in the subjects you would understand how do you do value stocks what are different valuation methodologies and how do you decide which stock vehicle or which equity is good or appropriate investments apart from that there’s a subject on bond markets in CFA curriculum this called as fixed-income then you have a subject on Derivatives if you’re scared of maths there’s nothing to worry about here this is a financial instrument which is called futures Options or forward contracts there is a subject which is alternative investments which would primary deal about mutual funds, ETF,realistic communities so of paid category of investment the products and vehicles these four subjects collectively are called as asset valuation so till Level II the focus of CFA curriculum is purely going to be on these four
subjects so though there are other subjects with these other subjects are modulated in such way that entire focuses is devoted to these four subjects so let’s look at what are the other subjects you have a subject called as corporate finance so as we discuss earlier this one subject which will help you be a part of the company help them raise money or help them invest into different projects then there’s a subject called financial reporting and analysis in Level I this is almost 1/5 of syllabus and it’s also considered as one of the core subject for Level I and Level II now in this subject you would learn how you do analyse annual reports how do you look at the hidden numbers within an organization and how do you project what is going to happen and how the business going to fair now if you do not have any accounting background or if you feel your not good in math there’s nothing to worry a we have a separate program we called this as CFA Level 0 program or Level 0 training at FinTree and in Level 0 we cover everything that one needs to know you actually start with Level I preparation so once you once you have look at the Level I , Level 0 syllabus once you either attend the session or watch the videos you’re going to feel extremely comfortable with all the background knowledge then there is a subject which is called as Economics in economics the focus would be more on financial economics and the coverage would be from a valuation perspective then we have quantitative methods in quantitative methods which is primarily starts at Level I is more basic concepts so it’s start from mean median mode it goes up to hypothesis testing but in level II it becomes really interesting and it deals with regression multiple regression time series and again the whole idea is that CFA institutes knows that all a lot of
calculation these are based upon by statisticale softwares so the way syllabus is modulated they would not ask you to calculate lot of things but they would ask you interpret so even if you’re not good at the subject don’t worry because with time you will get use to it and the only pre-request is for understanding Quant is having a good analytical background or way of thinking and then there is a subject which is called as Ethics now Ethics I generally called this as RAMAYAN & MAHABHARAT (two great epics of Indian history) of CFA institute so they will tell you all the good things you should be doing with your life getting up early, brushing you teeth, don’t lie,don’t cheat category 🙂 though they have it’s apparently very easy subject to read is also one of the most difficult subject to approach on the exam because the language is a bit tricky but we have certain strategies developed which will help you understand that the subject properly and then finally a subject which is
called as portfolio management that after having studied all these how do you actually put that to practice have fund of your client and then how do you help them invest into different assets allocation and within asset sectors different quality of Assets so these are the subjects the subjects
are same for level I , Level II and Level III but the level of difficulty increases so at Level I the focus is purely on basic knowledge and concepts so if you’re someone who’s good at terminology and your conceptually clear with basic here with basic things or basic subject then you would be ok with Level I Level II is Level which I feel is relatively more challenging more analytical here the focus is primarily on asset valuation and then Level III is purely going to focus on Portfolio Management so how do you progress your career with these 3 Levels the Level I the idea is that you can become if you are a fresher you would become a junior analyst where you would be helping a senior analyst on various Research front this is where you would get to learn the skills get learn tricks and techniques and skills to do hands on valuation after Level II and after Level III you should be targeting to become a fund manager so these were the 3 level of difficulties and these are the subjects and now the last part that we want to cover in this is what are the types of examination so again all the three exams are 6 hour examination this is your Level I, Level II, Level III the six hour are divided into two sorts or two parts so the first one is called as morning
exam which is 9-12 and the second part is called as afternoon exam which is 2-5 so in Level I you have to write 120 multiple choice question in the morning and 120 multiple choice question in the afternoon so it means you would be given a
question and then you’d be given 3 choices you have to identify which one is the appropriate one select the one and move on so that is the reason why we feel Level I is relatively easier example to pass because there is no negative marking with 120 questions three options
any ways 33.3% is coming free of cost and so level I if you’re sincere and if you put reasonable amount of efforts and time Level I is not at all going to be difficult but yes Level II is bit tricky there are 60 multiple choice question questions in the morning and sixty multiple-choice questions in the after noon now the format changes here a bit so in the Level II they have a a format
which is called as case study or they also call them as vignettes so what happened in vignettes is that
they would be a one, one and half page case study is given to you this case study would be followed up with six multiple-choice questions and again each of the question will give you 3 choices A, B and C and you would be required to take on the appropriate one the only difficulty that happens with level II is one is that you need to know concepts second one is you also need to acquire the skill set catch the right set of data from these case because they would lot of redundant data given in this cases so capturing the right set of data and then applying concept other skills required for Level two a Level III the afternoon exam is again similar to
what you did in Level II so there would be 60 multiple choice question here but the morning paper would be slightly different and this paper you would be required to write essays now these essays are different than what we people are generally use to think of eassys these are also called as constructed response so what happens in a constructed response is that you would be given a case a question and a certain space to write
your answer you have to read the case interpret the scenario and then write an appropriate answer based on the case so this was the exam format so we first looked at he What is CFA? the costing part of it career opportunities you also looked at what subject it covers and then the type of exams that you would be required to go through we also have certain other short video tutorials or presentations on CA and CFA combinations or CA and MBA combinations or exam passing criteria so if you interested have a look at them this is Utkarsh Jain and thank you very
much for your time

100 thoughts on “Everything you need to know about CFA Program!

  1. Sir after 12 th. Can we directly applied for CFA are want to do b.com sir plz reply my dream is to become investment 🏦

  2. What a brilliant presentation…. I want have some conversation with you regarding CFA. I am Chartered Accountant.. Just let me know the suitable time to connect with you

  3. sir what is the minimum percentage to Qualify each level and where will be the exam conducted ( In India or Outside India)

  4. When you put video for Promotions of this Course, how dare you are bluffing people that you completed in first go of 18 Months and next telling completed in 24 months which is true. Replay 1.34 to 1.38 what is your answer and then give reply to me.

  5. Sir , do we get certificate for each level as we pass them, or will we be getting it after completion of whole course?

  6. I will be taking CFA in Dec 2019, wanted to know how many months I should devote for studying.Is 5 months a sufficient time, If I start by July.

  7. Sir..i am completed the bcom 2nd year …then i get admission in cfa level 1? …please tell me sir

  8. Hey Sir. I have just completed my BCA. I want to make my career in Finance Sector. Would CFA be a good option for me ? Am i eligible for CFA ?
    Please do Reply Sir

  9. Sir, how much is bba finance recognize in market, and if i opt bba finance… Would that be a good option before i go for cfa or bba marketing ?

  10. After cleaning first level can I take more time but when I am feel good in subject then I go for take exam please give me answer like a chartered accountant

  11. i am in operaions in goldmann sachs and mba. I wannt to grow in my career as fast as possible. will cfa help me

  12. If someone is trying to clear CA ipcc more than 5 to 6 attempt but can't success AND he want to join the CFA in this case Is he need to clear level 1 or no? Plz help me

  13. Sir I’m a student of yours opting for online FRM coaching. I just want to thank you for explaining the concepts to the core and giving so simple examples during your sessions.

  14. I am an industrial engineer and my passion is really into financial markets trading (ie.,stocks, forex, etc.) I am currently on my MBA-Finance thesis writing. Is it advantageous for me to take CFA if my goal is to be a trader in a broker or any financial institutions?

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