Introduction about the CFA Program
According to my research, CFA Program can help you get such recognition in financial world since it is the definitive benchmark among the different industries related to investment. With global feature, you can do 3-level exams throughout the world. For instance, you can do level 1 in London, level 2 in Singapore and then level 3 in New York. As a consequence, why don’t you try to get this prestige certificate immediately after realizing all of the outstanding benefits?
What is CFA?
CFA (Chartered Financial Analyst) is considered as one of the most rigorous exams for anyone who is going to pursue financial career. It gives you the credibility in your investment profession. Moreover, many people regard CFA as a demanding financial designation when you want to be a part of such a competitive work landscape.
By taking part in this world-renowned exam, you can expand your horizons in terms of investment analysis. Furthermore, this will become your single greatest learning experience during your academic period. Last but not least, you will never regret entering for this exam that is recognized widely all over the world.
Overview of CFA Program
Going to the components of this curriculum, there are 10 subjects you need to study in order to pass all three CFA levels. In particular, the topics are divided into 3 main areas associated with the process of investing for clients. The first part is analysis of accounting, finance and economic while the second part is the analysis when applying tools to valuing assets, shares, bonds, derivatives as well as other items. Finally, you need to learn how to put the assets into the portfolio. However, you have to study the Ethical and Professional Standard along with all three parts. You have to become familiar with a wide range of ethical issues relating to your relationship with clients, with your firm, with CFA Institute and so on. This element is quite essential at all 3 three levels of CFA Program as well as your entire career.
First part: Investment Tools
- Financial Reporting and Analysis: This part aims to provide the accounting analysis, which is about the balance sheet and income statement. You need to understand all of the numbers and figures involved as well to make a wise decision.
- Corporate Finance: You can learn about the structure of a company where the funds come from. For instance, these funds can come from past profits, from the owners, shareholders, lenders and banks as well. Moreover, we learn how to invest by looking at the net present value and internal rate to return.
- Quantitative Methods: We will study the time value of money, process of compounding and discounting, which leads to the value of wide range of financial products.
- Economics: There are 2 small aspects in this topic including microeconomics and macroeconomics. With micro, we can look at the supply and demand, how individuals choose, how to spend money, how firms position themselves depending on the level of competition. Under macro, we learn about the government and monetary policy as well as how the whole economy operates.
Second part: Asset Classes
- Equity Investment: You can know how to value a company and whether the shares of that company worth. With this subject, there are a number of methods offered on how to do those valuations.
- Fixed Income: this word has the same meaning as bonds that a company or the government can borrow money by issuing the bond and we use quantitative method to value those.
- Derivatives: With this part, we can learn about the future and options that you can use for risk management.
- Alternative Investments: This chapter introduce you the commodities, real estate, venture capital and so on.
Third part: Portfolio Management
This part does not account for many points but it is every important for your real-world experience. This is related to the mathematics of combining assets and what happens when we put all the assets together. As a financial analyst, you definitely want to maximize your return and minimize the risk. Therefore, this part helps you to look at the valuation models as well as how we can analyze investment which is suitable for a client. It also introduces the idea of client analysis, then we will understand the objectives and constraints in order to support the clients with their investment decision.
In general, I hope that all of my information about CFA Program will help you gain more understanding about this incredible exam. In case you are in need of any advice, please feel free to get in touch with me and I will be willing to solve your problems immediately.