CFA level 1 course: Why is it necessary?

CFA

Chartered Financial Analyst (CFA) is a globally recognized designation for finance and investment professionals provided by the CFA Institute. It is one of the world’s prestigious designations that requires extensive knowledge and expertise in investment and portfolio management. This certification is given to those who pass the three-level exam of the CFA program and has relevant work experience. An aspiring candidate has to study and prepare for the CFA program rigorously with utmost dedication and will. Being the apex designation in the field of finance and investment, the exams are quite difficult, and only deserving candidates can manage to get through all the levels.

Candidates have to appear for all three levels of the CFA program in a sequential manner to become a CFA Charterholder. CFA level 1 is the first part of the program, a computer-based exam that consists of 180 multiple-type questions. The exam is split into two sessions each of 135 minutes. This level is focused on the knowledge and comprehension of investment tools and other ethical and professional standards. There are various CFA level 1 free course available on the Internet that can help in the preparation for the exam. However, it is essential for the candidate to self-study and be consistent throughout the preparation time.

CFA Level 1: Module Curriculum

The CFA level 1 entails the basic academic concepts of finance and investments. The candidates have to go through the concepts of portfolio management and investment valuation. Here’s a detailed view of the key subjects and concepts that you have to prepare for the CFA level 1 exams:

  • Quantitative Analysis: This topic requires studying money, time, probability, and statistics using modern evaluation techniques and analysis. The subject is aimed towards giving knowledge of analytical tools
  • Equity Investment: This topic deals with how to calculate the estimated intrinsic and other value using varied additional valuation methods. The concepts learned in this subject lays the foundation for further studying in levels 2 and 3.
  • Financial Reporting Analysis: This topic involves the concept of principal financial statements, analysis of financial reports, the decision-making process for investments, etc. Since the exam is held globally, this subject focuses on standard accounting practices.
  • Economics: This subject deals with the key aspects of macro and microeconomics and how to use them for marketplace consumer behavior and analysis. The candidate has to be well-versed with concepts like business cycle and its effect on economic growth.
  • Fixed income analysis: Students are required to study portfolio strategies and risk management for business organizations. They need to understand the key features of fixed income securities and their varied pricing means.

Why opt for a CFA Level 1 course?

Although the CFA program is a distance-learning program that requires dedication, will, and patience, having proper guidance is necessary. To clear all the levels of the CFA program, the candidate requires adequate study resources and instructions. While all the necessary information is available on the official website of the CFA Institute, it might not be sufficient to begin with the preparations. You can find a CFA level 1 free course offered by various CFA course providers that can be benefitting initially.

Some key benefits of such online level 1 courses are as follows:

  • Detailed learning – In-depth understanding of concepts is extremely necessary for passing the CFA exams. Since the curriculum for these courses islengthy and descriptive, it requires a proper grasp of subjects and topics. Through the online course, the candidate can engage in detailed concept learnings.
  • Adequate resources – Another benefit of enrolling for a CFA level 1 preparation course is that you can get adequate study materials and resources. These will help in strengthening your preparation by getting additional study notes, practice questions, mock tests, etc.
  • Self-paced learning – Unlike the offline courses, these online preparation courses facilitate easy and self-paced learning. The videos are pre-recorded that cover every topic in sufficient detail. You can access the videos anytime from anywhere you want.

Final Note

CFA program is difficult to crack but one can attempt to clear all the exam levels with utmost dedication and endurance. Any finance professional or student willing to appear for these exams must be aware of the course content and exam structure. Opting for a CFA level 1 free course can give a kick start to your preparation journey. These videos help you gain a better understanding of the basic topics so that you are ready to register for the advanced preparation courses.