The CFA charter is one of the most prestigious qualifications for those who work in the financial sector or have a financial future. The CFA Institute's qualifications command the confidence of all employers in the financial sector.
Overview of CFA Level I Relevant Topics:
There are six most relevant topics based on the percentage of marks distributed that you have to concentrate more on, which is
- Reviews of financial statements
- Ethics and Ethical Standards
- Quantitative Studies •
- Fixed Analyses of Profits
- Investment in equity
Analyses on Financial Reporting:
Here, you will get the idea of financial reporting, review of financial reports in investment decision making, the principal financial statements, and management debate and analysis of results.
Ethics and Principles of Professionality:
This module focuses on the essential foundations for investing globally by supporting the highest standards of ethics, education, trust, credibility, trust, and value necessary for a stable and robust industry.
The quantitative techniques that are important in financial analysis are represented in this report. The various quantitative analysis methods, such as time value of money, descriptive statistics, and probability, are discussed in this session.
Fixed Analyses of Income:
This section focuses on recognizing that the yield curve influences portfolio strategies and risk management. The interpretation of future and inferred spot prices, length, and convexity are included.
Investment in Equities:
This study session provides additional methods of valuation for estimating the intrinsic value of a business.
The emphasis of this study is on microeconomic concepts. These concepts are used to characterize the actions of customers and businesses in the marketplace.
But does this answer your CFA Syllabus doubts? If you have other questions, list them in the comments box below, and they will be answered as soon as possible.
Management of Portfolios:
This section deals with fundamental portfolio management principles and discusses some key concepts, including Modern Portfolio Theory and the Model of Capital Asset Pricing. The segment's weighting is just 7%, which approximately translates into around 17 questions in the exam. However, in Level II and Level III of the CFA, this section gains growing importance as the emphasis moves to apply available information for efficient portfolio management.
CFA Level 1 notes
CFA Level 1 notes are planned and written by CFA Charter holders to assist you in the most successful way to understand the core concepts addressed in the CFA examinations. With straightforward, comprehensive explanations, each chapter summarises the new CFA curriculum in CFA notes to help you understand complex concepts and speed up your learning.
There are handy tips and tricks spread out through the CFA subjects CFA best notes to help you grasp concepts faster. The end-of-chapter helps you to test your knowledge of key concepts and create trust. What's more, when you need it, our teachers can always chip in with additional clarification.
For the different formulas and ratios, you need to memorize, a detailed formula sheet and Financial Reporting and Analysis ratio sheet in CFA free notes are provided as easy reference guides and visual tools.
Your Research Progress Map:
Build a research schedule for Excel, Outlook, or another tool and chart the progress as each part of the study is completed.
This will assist in completing the program at least a month before the test.
It is advisable to develop and stick to a study schedule during last month's analysis.
Don't leave questions about practice for later:
At the end of each segment, it is strongly recommended to try all practice issues instead of leaving them later.
This will help measure the progress you have made and reveal the areas of weakness that might need to be mastered with additional effort and study time.
Practicing questions can also lead to your faith in what you have learned and helped you get a sense of what you might face in the exam.
Go by the CFA curriculum definitions:
Acquiring knowledge of financial concepts and understanding several complex terms associated with them, as per the CFA curriculum, would be essential.
This is because, in the curriculum, there are many complicated financial concepts discussed, and words in the curriculum are interpreted differently.
In comparison, items could have been described very differently in other places. This can cause uncertainty and a lack of understanding, and to remain on the right track for your test, it is recommended to refer to the curriculum regularly.
Using a Mock Test to plan well:
It is usually recommended to practice more questions from CFA level 2 notes in the month-long curriculum review cycle before the exam and appear for a CFA Institute's mock exam.
This would enable you to take a 3-hour morning session test followed by a 2-hour break, after which you would begin another 3-hour long afternoon session.
This is likely to help you mentally prepare well for the test, apart from determining your results' general level.
Master All Result Statements (LOS) for learning:
The CFA Institute specifically describes LOS as "awareness, skills, and abilities that you should be able to apply after every reading and all related exercises and problems are completed."
You should write down the key terms, meanings, and formulas to master the LOS, which will help to remember them better.
Additional Strategies for Learning:
Instead of bringing around explicit content, you might make flashcards to review key concepts in the curriculum quickly.
This makes it easier for the shortest available breaks to return to studying and reviewing the content.
Mnemonic devices and other memory methods may be one useful technique.
Next, determine what to study:
To avoid losing out on any concepts and their complexities introduced in the CFA Curriculum, it would be essential to establish a structured approach to studies.
Studying subjects in the order, they are presented is not at all necessary.
Instead, before taking up more advanced topics when planning, it could be a safer approach, to begin with, the sections covering the fundamentals. One rational way would be to concentrate on quantitative approaches that could find broader applications in other fields before moving on to financial reporting and research and later avoiding more nuanced and advanced topics such as macroeconomics and ethics.
Another solution may be to concentrate on quantitative subjects, grasp the concepts, resolve the issues posed, and review qualitative content before attempting similar issues, including ethics and behavioral finance.
In this order, my personal strategy was: Quantitative Analysis -> Financial Statements -> Ethics -> Corporate Finance -> Fixed Income -> Economics -> Equity Investments -> Derivatives -> Alternative Investments -> Portfolio, then Ethics (read twice)
Practice with a calculator authorized by the CFA:
It will be better to practice with a CFA certified calculator to ensure that you do not lose any time during the test, providing excellent assistance at the exam time.
If you are well familiar with the functions available for calculating effective yield, capital budgeting, and other required calculations, it would be helpful. Sample CFA Level 3 notes
To help the students understand the pattern of questions that may be posted and how they are addressed, the CFA Institute provides several sample questions, which will help prevent any misunderstanding when answering the actual exam questions.
In the CFA Level, I test, two query formats are mainly adhered to.
This involves problems where the whole equation must be studied and how to complete the last sentence with the correct choice.
Another format, based on the analysis of the question, is available. It would help if you chose the right choice, which is the answer. Completion Certainly, the CFA Level I exam is not for the faint-hearted or anyone casually involved.
It is intended for individuals already employed in finance with a fair amount of experience in a particular field. It can improve their expertise and technical skills, and career development capabilities.
The chances of completing the exam are not unlikely, but participants need to understand that the outcomes will not be favorable without a coordinated and committed effort.
On the cheerful hand, completing the CFA Level I exam opens up a whole new world of professional development opportunities. For any finance professional, it extends the reach of experience and skills. At that time, they can set their sights on earning and putting their best foot forward with the much-coveted CFA Charter. In 6 books of the level 1 program, the ten subjects are all covered. The subjects' material is further split into smaller portions: readings of the subject's study sessions. Overall, the program for level 1 is approximately 3000 pages long.
That's why applicants are always searching for more digestible research content, such as videos, tests, or e-books. As a rule, from year to year, the CFA exam curriculum varies. However, the 2020 program will also apply to all Level 1 exams conducted in 2021 due to the June 2020 test's pandemic-related postponement. Therefore no significant shift in subject weights is expected.