CFA® Training - Understand the CFA® Course Outline
This article will help you to plan your study schedule for CFA level 1. You will further get to know about recent changes in the CFA curriculum.
CFA® LEVEL 1 STUDY PLAN
Have no idea from where to start preparing for CFA level 1?
This article will help you in making your study plan.
This study plan ensures that the candidate:-
Master the high weightage topics
Stay motivated throughout the preparation
Be mindful about finding the appropriate connection between topics to expand knowledge.
CFA level 1 Subjects
FINANCIAL REPORTING AND ANALYSIS
If the candidate is not from a commerce background then 17-19 sessions are helpful - covering concepts like Cash Flow Statement, the Income statement, and Balance Sheet.
The candidates will be working with specific categories of assets and liabilities that are susceptible to alternative accounting policies and estimates.
Topics covered- Inventory Costing, Depreciation, Intangible Assets, deferred Taxes, Leasing, and accounting for Bonds.
FIXED INCOME
Quant price calculation, duration convexity, options, basics of credit analysis are covered in this study session.
It would be easy for a candidate to understand the concepts covered in fixed income if they have mastered TMV in Quantitative Methods.
EQUITY
The candidate should take 12-15 sessions as they focus on the analysis, valuation, and characteristics of equity securities.
Mastering TVM will benefit in understanding equity securities and valuation.
ALTERNATIVE INVESTMENT
In the 2022 curriculum, new topics like Private Debt, Timber, and Farmland are added, along with Private Equity and Real estate. These new topics are of more focused for a candidate.
DERIVATIVES
Basic understanding of Derivative securities, Forwards, Future Options, and Swaps, the sessions ensure that the candidate is competent in their comprehension of these financial instruments.
CORPORATE ISSUERS
Some concepts overlap with the topics covered in the Quantitative Methods and Accounting sections.
Corporate Governance is also covered, and it is something that should be reviewed thoroughly as the exam approaches.
QUANTITATIVE METHODS
This is one of the difficult subjects to master. In the 2022 curriculum, new topics on linear regression are added, which proves to be helpful in CFA level 2.
The introduction of concepts like sampling, estimation, and hypothesis may affect the pace of your studies.
PORTFOLIO MANAGEMENT
Topics like- the introduction of the area of diversification and statistical concepts such as Standard derivation previously discussed are used in Portfolio management.
The Portfolio Planning and construction Process are some critical topics in this study session.
ECONOMICS
Economics is a vast topic and this subject may take time to complete.
Economics cover three main areas:-
Micro and Macro Economic Analysis
This topic introduces the basic concept of supply and demand.
Once the candidate masters this concept, they can expand their knowledge to cover the output and costs incurred by the firm.
Once this concept is over, you can expand your knowledge to cover the output and costs incurred by the firm.
Monetary and fiscal policy
This session explains the flow of goods and services, physical and financial capital across countries, and overview of currency market fundamentals.
ETHICAL AND PROFESSIONAL STANDARDS
The candidate must ensure that they grasp the Ethics syllabus's rules and regulations.
Situations in the CFA® curriculum will help you apply these principles in a real-time scenario. Questions will be based on a hypothetical situation, so make sure you know how to apply the rules in different scenarios.
This table may help you in making your study plan
CFA® curriculum is changed on yearly basis. Institute that provides CFA® training classes and imparts information related to CFA® curriculum and weightage.
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