Why does it make sense to pursue the CFA Program right after school?
With Board exams for the scholastic year 2023-24 drawing to a close, it’s a well-deserved break time till the results starts getting declared end of May. However, at a sub-conscious level many of you would have a question lingering with you.. “What NEXT? Which study option would best complete me?”
Well this blog details one such study option and also towards the end shares a guidance on how you could decide with a fair bit of certainty whether this course could be your cup of tea?
Booming Indian Economy & Investment Markets:
Indian economy grew at 8.4% in the last quarter. Should the BJP come to power with a thumping majority, the Indian economy in the short run (coming 5-10 years) is slated to grow @ 10%. On course to becoming the world’s 3rd largest economy by 2027, USD 10 trillion economy by 2032 and USD 25 trillion economy by 2047, India is staring at insane levels of investment mobilization to fund this gigantic growth momentum.
CFA Program is globally considered the benchmark program in investment management. Since, investments are going to be the core that will propel the Indian economic juggernaut, importance of the CFA Program gets underscored. The CFA Program is very closely integrated with the industry and hence remains very contemporary actively integrating new trends and developments in its curriculum be it role of Artificial Intelligence (AI)& Machine Learning (ML) or Cryptocurrency& Digital Assets.
Chartered Financial Analyst (CFA)® Program
About the CFA Program:
CFA or the Chartered Financial Analyst (CFA)® Program by the CFA Institute is globally recognised as the gold standard credential in the field of investment analysis and portfolio management. The CFA Program structured across 3 levels tests the candidate on fundamentals of investment tools, valuing assets, portfolio management and wealth planning thereby imparting the necessary skill set and knowledge to succeed in today's extremely competitive investment management industry deluged by data and information. The Program goes beyond the theoretical realm, emphasizing practical applications in real-world scenarios. As a CFA candidate progresses through the three levels, he or she not only gains proficiency in quantitative techniques and financial analysis but also develop a nuanced understanding of ethical considerations and professional conduct within the investment landscape.
CFA Program Eligibility Guidelines:
Anyone of the following:
a) the candidate must have a bachelor’s degree from a recognized college/university.
b) for those at undergraduate level, the selected exam window for CFA Level 1 must fall within 23 months of their graduation month.
c) 4,000 hours of paid work experience or combination of higher education and work experience.
Since this blog caters specifically to those who are at the brink of completing class 12 and enter college, eligibility norm covered in point b above is mostly relevant. Accordingly, a student entering college in 2024, would in most of the cases be eligible to appear for the CFA Level 1 exams in August 2025 else November 2025.
Given the expanse, the content & curriculum structure and a new testing environment, a student who is about to start his or her graduation, should invest at least 12-15 months in preparation for CFA Level 1. Extensive prep with focus to build strong core and fundamentals, will not only ensure a good score but also go a long way in differentiating you against your peers.
Topics covered in the CFA Program:
The CFA Program across the three levels tests the candidates on the following 10 topics:
- · Ethics & Professional Standards
- · Quantitative Methods
- · Economics
- · Financial Statement Analysis
- · Corporate Issuers
- · Equity Investment
- · Fixed Income
- · Derivatives
- · Alternative Income
- · Portfolio Management
Though the topics remain the same, level of complexity and weightages change at each level. Also the testing pattern evolves from multiple-choice questions (MCQs) to vignette based MCQs to combination of structured response and vignette based MCQs.
Pathway to the CFA Charter:
CFA Program Fee Structure:
· One time enrollment fee: USD 350
· Exam Registration Fee for Level 1 & Level 2:
o Early: USD 990
o Standard: USD 1290
· Exam Registration Fee for Level 3:
o Early: USD 990
o Standard: USD 1290
Note:
· The above is the fee commitment to the CFA Institute only.
· The CFA Institute has an EMI facility for students registering from India.
https://www.cfainstitute.org/en/programs/cfa/exam/flexible-payments
CFA Program Scholarship:
To enable access of the CFA Program to those who aspire to build a career in investment management but are stifled owing to monetary constraints to register for the Program, the CFA Institute has made available the following Scholarship plans:
· Access Scholarship
o CFA Program enrollment fee is waived and exam registration is reduced to USD 300.
o 2 windows open generally towards end of
§ September
§ January
o Scholarship window remains open for 3-4 weeks
o Scholarship results announced within 2 months of application window closing.
· Student Scholarship
o CFA Program enrollment fee is waived and exam registration is reduced to USD400.
o The University Affiliation Program recognizes academic institutions that embed at least 70% of the CFA® Program Candidate Body of Knowledge™ (CBOK) into their curricula.
o As on date only Christ University is eligible for this scholarship at undergrad levels.
· Women's Scholarship
o CFA Program enrollment fee is waived and exam registration is reduced to USD400.
For more details on the CFA Scholarship, please refer the link below:
https://www.cfainstitute.org/en/programs/cfa/scholarships
The following video on YouTube by Sanjay Saraf Sir details in brief the key elements that one must remember while applying for the CFA Scholarship:
How to decide whether the CFA Program is the chosen path for you?
The critical question always remains:
“How will I know whether the CFA Program is the path I should tread or not?”
I had recently hosted a webinar that shares the same title as this blog:
“Why does it make sense to pursue the CFA Program right after school?”
YouTube Link for the above-mentioned webinar is herein below:
All at undergrad and those who are at the verge of completing or have completed Class 12 and are aspiring to build a career in finance, are strongly urged to watch the webinar.
In the webinar (check time stamp at 30 min 20 seconds), I have mentioned about CFA Building Blocks - a 5 class series which when attended will provide you an overview on the coverage that the CFA Program prepares you for. Shared below is the link to the CFA Building Block playlist:
https://www.youtube.com/playlist?list=PLP3KuMma5JarI_Ra87yMS_ANa6iBaQ0XL
Do carve out 8-10 hours of your time, and invest in watching these 5 videos to make an make an informed decision on whether you should register for the CFA Program or not.
Conclusion:
Trust the above assists the intended audience in getting clarity on the CFA Program, its coverage and also on how to decide whether the CFA Program is your intended cup of tea?
I do understand there would be some or many questions still that remain unanswered. For the same I strongly encourage you to reach out to my partner CA Piyush Pugalia (ex-Investment Banker) on WhatsApp on +91 9674006544 for a one to one counselling session.
Cheers!!!