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EduPristine>Blog>All Important About CFA® LEVEL 1 Syllabus

All Important About CFA® LEVEL 1 Syllabus

May 31, 2016

CFA® charter is one of the most exalted credentials of those who work in the financial sector or who make their future in finance. The credential delivered by the CFA Institute commands the respect of all employers within the financial sector.

CFA® exam details:

CFA® course is divided into three levels. To obtain the charter, candidates must pass all consecutive levels of the course. The CFA® level 1 exam is divided in two parts. Every part consists of a 3 hour examination that includes 120 multiple choice questions. These questions are based on the level 1 learning outcomes statements as required by the CFA Institute.



CFA® exam Registration Process:

The CFA Institute offers the level 1 exam twice a year at their test centers located around the globe. To take the exam, a candidate must be enrolled on CFA Institute websites and register for the exam. Early registrations are often offered at a low price, whereas late enrollment requires a higher price for the exam.

CFA® LEVEL I SYLLABUS

The CFA® Level I syllabus focuses on the basic knowledge of the ten topic areas and simple analysis using investment tools. It is designed to introduce the candidate to the various concepts of the finance and investment world.

The topic areas covered in the CFA® Level 1 syllabus and their weightage is as follows:

TopicPercentage of marksSub-topic
Financial reporting analysis20Financial reporting mechanics & Standards
  Understanding income statements
  Understanding balance sheet
Ethics15 Standards of professional conduct
  Global Investment Performance standard
Quantitative analysis12Time value of money
   Discounted cash flow applications
   Statistical concepts and market returns
Fixed income analysis10Fixed income securities
  Fixed income markets
  Introduction to fixed income valuation
Equity Investment10Market organization and structure
  Security market indices
  Market efficiency
Economics10Demand & supply analysis
  The Firm & market structures
  Aggregate output, Prices, Economic growth
Corporate finance7Capital budgeting
  Cost of capital
Portfolio management and wealth planning7Portfolio management
  Basics of portfolio planning and construction
Derivatives5Derivatives market and instruments
  Basics of derivative pricing and valuation
Alternative investment4Mutual funds
  Real Estate
Total100 

Overview on Important topics of CFA® Level I:

Based on the percentage of marks distributed, there are 6 most important topic that you have to focus more that is

  • Financial Reporting Analyses
  • Ethics and Professional Standards
  • Quantitative Analyses
  • Fixed Income Analyses
  • Equity Investment
  • Economics

Financial Reporting Analyses:

In this study you will get the idea of financial reporting, analysis of financial reports in investment decision making, the principal financial statements and management discussion and analysis of results.

Ethics and Professional Standards:

This module focuses on the essential foundations for the investment globally by promoting the highest standards of ethics, education, trust, reputation, confidence and value which is essential for a strong and healthy industry.

Quantitative Analyses:

This study represents the quantitative techniques that are essential in financial analysis. This session introduces the several tools of quantitative analysis like time value of money, descriptive statistics, and probability.

Fixed Income Analyses:

This part focuses on understanding the yield curve affects portfolio strategies and risk management. It includes interpreting future and implied spot rates, duration and convexity.

Equity Investment:

This study session presents additional valuation methods for estimating a company’s intrinsic value.

Economics:

This study focuses on the micro economic principles. These principles are used to describe the marketplace behavior of consumers and firms.

So does this solve your doubts regarding the CFA Syllabus? If you have any other queries then mention them in the comments box below and it shall be solved at the earliest.



If you have already made the decision of going for CFA® Program and are looking for a training institute, then EduPristine is a great option as we are CFA Institute authorized training providers . We provide both Online and Classroom trainings . Check the CFA® course details and Enroll Now.

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