The Chartered Financial Analyst (CFA) designation is widely recognized as a prestigious qualification in the field of finance and investment management. Offered by the CFA Institute, The CFA course has been divided into three levels. The levels are CFA Level 1, CFA Level 2 and CFA Level 3. To obtain the CFA charter, candidates must successfully navigate three levels of exams, each focusing on different subject areas. Also Check: CFA Admission 2023
CFA Level 1 Subjects mainly constitutes of basic concepts of the academic disciplines of Finance and Investment. The CFA Level 2 Subjects build upon the foundational knowledge acquired in Level 1 and delve deeper into the analysis and application of investment tools and concepts. The CFA Level 3 examination is the final step in the CFA program and focuses on synthesising and applying the knowledge gained in the previous levels. Also Check: CFA Jobs and Salary
The candidates can only move to the next level after passing the previous level exam. The curriculum is designed in such a way that the candidates gain in-depth knowledge in investment depth, investment decision-making, financial accounting, derivatives, stock market, etc. In this article, we provide a comprehensive overview of the CFA subjects, shedding light on the depth and breadth of the program.
Learn more: CFA Full Details
Table of Contents
2.1 Subjects List
2.2 Weightage
2.3 Books
3.1 Subjects List
3.2 Weightage
3.3 Books
4.1 Subjects List
4.2 Weightage
4.3 Books
CFA Level 1 Subjects
The CFA Level 1 Subjects serve as an introduction to the fundamental concepts and tools used in investment management. It covers a broad range of topics to ensure candidates develop a strong foundation in finance. The subjects included in the CFA Level 1 curriculum are given below.
Also Check: CFA Level 1 Registration
Subjects List
- Ethical and Professional Standards
- Quantitative Methods
- Economics
- Financial Reporting and Analysis
- Corporate Finance
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
- Portfolio Management and Wealth Planning
Weightage
The CFA Level 1 exam places varying weightage on each subject, with some subjects being more heavily emphasised than others. The approximate weightage distribution for each subject is as follows:
| Subject | Weightage |
|---|---|
| Ethical and Professional Standards | 15-20% |
| Quantitative Methods | 8-12% |
| Economics | 8-12% |
| Financial Reporting and Analysis | 13-17% |
| Corporate Finance | 8-12% |
| Equity Investments | 10-12% |
| Fixed Income | 10-12% |
| Derivatives | 5-8% |
| Alternative Investments | 5-8% |
| Portfolio Management and Wealth Planning | 5-8% |
Also Check: CFA Level 1 Salary
Books
To effectively prepare for the CFA Level 1 exam, candidates are recommended to refer to the following books:
| Subject | Recommended Books |
|---|---|
| Ethical and Professional Standards | "Ethics and Standards in Professional Practice" by CFA Institute |
| Quantitative Methods | Quantitative Investment Analysis" by Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, and David E. Runkle |
| Economics | "Economics for Investment Decision Makers" by Christopher D. Piros and Jerald E. Pinto |
| Financial Reporting and Analysis | "Financial Reporting and Analysis" by Gibson |
| Corporate Finance | "Corporate Finance: A Practical Approach" by Michelle R. Clayman, Martin S. Fridson, George H. Troughton, and Matthew Scanlan |
| Equity Investments | "Equity Asset Valuation" by Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, and John D. Stowe |
| Fixed Income | "Fixed Income Analysis" by Frank J. Fabozzi |
| Derivatives | "Options, Futures, and Other Derivatives" by Hull |
| Alternative Investments | "Alternative Investments: CAIA Level I" by Donald R. Chambers, Mark J. P. Anson, Keith H. Black, and Hossein Kazemi |
| Portfolio Management and Wealth Planning | "A Practical Guide to Investment Planning and Portfolio Management" by Michael Dalton, Alain DeValois, and Richard Marston |
Lean More: CFA Level 1 Full Details
CFA Level 2 Subjects
The CFA Level 2 Subjects builds upon the foundational knowledge acquired in Level 1 and delves deeper into the analysis and application of investment tools and concepts. The Level 2 curriculum focuses on the evaluation of asset classes and the integration of different investment disciplines. The subjects covered in the Level 2 curriculum are given below.
Also Check: CFA Level 2 Registration
Subjects List
- Ethical and Professional Standards
- Quantitative Methods
- Economics
- Financial Reporting and Analysis
- Corporate Finance
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
- Portfolio Management and Wealth Planning
Weightage
The weightage distribution for each subject in the CFA Level 2 exam is as follows:
| Subjects | Weightage |
|---|---|
| Ethical and Professional Standards | 10-15% |
| Quantitative Methods | 5-10% |
| Economics | 5-10% |
| Financial Reporting and Analysis | 10-15% |
| Corporate Finance | 5-15% |
| Equity Investments | 10-15% |
| Fixed Income | 10-20% |
| Derivatives | 5-15% |
| Alternative Investments | 5-15% |
| Portfolio Management and Wealth Planning | 5-10% |
Also Check: CFA Level 2 Exam Dates
Books
To prepare effectively for the CFA Level 2 exam, candidates are recommended to refer to the following books:
| Subjects | Recommended Books |
|---|---|
| Ethical and Professional Standards | Ethics and Standards in Professional Practice" by CFA Institute |
| Quantitative Methods | Quantitative Investment Analysis" by Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, and David E. Runkle |
| Economics | "Economics for Investment Decision Makers" by Christopher D. Piros and Jerald E. Pinto |
| Financial Reporting and Analysis | "Financial Reporting and Analysis" by Gibson |
| Corporate Finance | "Corporate Finance: A Practical Approach" by Michelle R. Clayman, Martin S. Fridson, George H. Troughton, and Matthew Scanlan |
| Equity Investments | "Equity Asset Valuation" by Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, and John D. Stowe |
| Fixed Income | "Fixed Income Analysis" by Frank J. Fabozzi |
| Derivatives | "Options, Futures, and Other Derivatives" by Hull |
| Alternative Investments | "Alternative Investments: CAIA Level I" by Donald R. Chambers, Mark J. P. Anson, Keith H. Black, and Hossein Kazemi |
| Portfolio Management and Wealth Planning | "A Practical Guide to Investment Planning and Portfolio Management" by Michael Dalton, Alain DeValois, and Richard Marston |
Learn More: CFA Level 2 Full Details
CFA Level 3 Subjects
The CFA Level 3 examination is the final step in the CFA program and focuses on synthesising and applying the knowledge gained in the previous levels. It emphasises portfolio management and the integration of various investment disciplines. The subjects covered in the Level 3 curriculum are given below.
Also Check: How to become a Financial Analyst?
Subjects List
- Ethical and Professional Standards
- Behavioural Finance
- Private Wealth Management
- Capital Market Expectations
- Asset Allocation
- Fixed Income and Equity Portfolio Management
- Alternative Investments
- Risk Management and Derivatives
- Execution of Portfolio Decisions
- Evaluation and Attribution of Portfolio Performance
Also Check: CFA vs CA
Weightage
The weightage distribution for each subject in the CFA Level 3 exam is as follows:
| Subject | Weightage |
|---|---|
| Ethical and Professional Standards | 10-15% |
| Behavioural Finance | 5-10% |
| Private Wealth Management | 5-10% |
| Capital Market Expectations | 5-15% |
| Asset Allocation | 5-15% |
| Fixed Income and Equity Portfolio Management | 10-15% |
| Alternative Investments | 5-15% |
| Risk Management and Derivatives | 5-15% |
| Execution of Portfolio Decisions | 5-10% |
| Evaluation and Attribution of Portfolio Performance | 5-10% |
Also Check: Why Study CFA?
Books
To effectively prepare for the CFA Level 3 exam, candidates are recommended to refer to the following books:
| Subject | Recommended Books |
|---|---|
| Ethical and Professional Standards | "Ethics and Standards in Professional Practice" by CFA Institute |
| Behavioural Finance | "Psychology, Decision-Making, and Markets" by Richard Deaves |
| Private Wealth Management | "Private Wealth Management: The Complete Reference for the Personal Financial Advisor" by G. Victor Hallman and Jerry S. Rosenbloom |
| Capital Market Expectations | "A Science to Teach or an Art to Learn?" by Frank J. Fabozzi and Harry M. Markowitz |
| Fixed Income and Equity Portfolio Management | "Fixed Income Analysis" by Frank J. Fabozzi |
| Asset Allocation | "Equity Asset Valuation" by Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, and John D. Stowe |
| Alternative Investments | "Alternative Investments: CAIA Level II" by Donald R. Chambers, Mark J. P. Anson, Keith H. Black, and Hossein Kazemi |
| Risk Management and Derivatives | "Risk Management and Financial Institutions" by Hull |
| Execution of Portfolio Decisions | "Investment Performance Measurement" by Bruce J. Feibel |
| Evaluation and Attribution of Portfolio Performance | "Performance Measurement and Attribution" by Carl R. Bacon |
Also Check: CFA Jobs
Top Skills that Every CFA Must Know
- Financial Analysis: CFAs must have a strong foundation in financial analysis, including the ability to evaluate financial statements, assess company performance, and analyse investment opportunities.
- Risk Management: CFAs should be adept at understanding and managing risk.
- Time Management: The CFA program demands a significant commitment of time and effort. CFAs must possess excellent time management skills to balance study, work, and personal commitments effectively.
- Quantitative skills: CFAs must have strong quantitative skills. They must be able to understand and apply mathematical and statistical concepts to financial problems.
- Data analysis: CFAs must be able to collect, analyse, and interpret large amounts of data.
- Modelling: CFAs use models to analyse financial markets and make investment decisions.
- Risk management: CFAs must be able to identify and manage risk.
- Investment research: CFAs conduct research on companies and securities.
- Portfolio management: CFAs manage investment portfolios.
CFA Subjects: FAQs
Ques. What are the CFA subjects?
Ans. The CFA subjects are the areas of knowledge that are tested on the CFA exams. They are:
- Ethical and Professional Standards
- Quantitative Methods
- Economics
- Financial Statement Analysis
- Corporate Finance
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
- Portfolio Management and Wealth Planning
Ques. Are the CFA exams computer-based or paper-based?
Ans. The CFA exams are currently paper-based. However, the CFA Institute is transitioning to computer-based testing (CBT) for all three levels. The transition to CBT is expected to improve exam accessibility and flexibility.
Ques. How many hours of study are recommended for each CFA exam level?
Ans. The CFA Institute recommends a minimum of 300 hours of study for each exam level. However, the actual study hours may vary depending on individual learning styles, prior knowledge, and experience.
Ques. What are the subjects in the CFA Level 1 exam?
Ans. The CFA Level 1 exam covers ten subjects, which include Ethical and Professional Standards, Quantitative Methods, Economics, Financial Reporting and Analysis, Corporate Finance, Equity Investments, Fixed Income, Derivatives, Alternative Investments, and Portfolio Management and Wealth Planning.
Ques. Can you provide some recommended books for CFA Level 2?
Ans. Some recommended books for CFA Level 2 include "Financial Reporting and Analysis" by Charles H. Gibson, "Equity Asset Valuation" by Jerald E. Pinto, "Options, Futures, and Other Derivatives" by Hull.
Ques. What are the best resources for studying for the CFA subjects?**
Ans. There are many resources available to help you study for the CFA subjects. Some popular resources include:
- The CFA Institute curriculum
- The CFA Institute Mock Exams
- Third-party study guides and practice exams
Ques. What are the benefits of becoming a CFA charterholder?
Ans. Increased professional credibility and recognition and enhanced knowledge and skills in investment analysis.
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