If you have ever looked at the CFA syllabus, you might have felt a mix of excitement and anxiety. With multiple levels and a long list of subjects, knowing where to start is tricky.
Well, as you know, the commerce students are attracted towards the CFA qualification. They tend to explore more about the CFA subjects and more details about the course.
Let us today unfold it level-wise as per their weightage and the study material
Table of Contents:
CFA Course Overview
The Chartered Financial Analyst (CFA) program is an internationally acknowledged professional certification for experts in the field of finance and investments. It aims to deliver a thorough understanding of the topics mentioned, namely investment analysis, portfolio management, financial reporting, and ethics. The CFA duration is approximately 3 years, so you have a year to pass each level.
It consists of three tiers, Level 1, Level 2, and Level 3, which are progressively more difficult and more focused.
- Level 1 sets the stage with the fundamentals of finance, the investment instruments, and the standard of ethics.
- Level 2 takes the concepts and their application one step further, focusing on the valuation of assets and analysis of finances.
- Level 3 is all about managing a portfolio, planning one’s wealth, and putting investment strategies into practice.
Each level has a specific set of subjects, subject weightage, and recommended study materials, which we will cover in detail in the following sections. If you have a clear understanding of the structure, you will be able to plan your study schedule more efficiently. and thus increase your likelihood of passing the exams on your first attempt. However, you must check the CFA eligibility before pursuing it and investing your time.
Recommended Study-Time by CFA Level | |
|---|---|
| Level | Study Hours Required |
| Level 1 | 300–350 hours |
| Level 2 | 300–350 hours |
| Level 3 | 300–350 hours |
CFA Level 1 Subjects
The CFA Level 1 is the first stage of the CFA program. CFA Level 1 Subjects mainly cover the fundamental knowledge of investment tools, concepts, and moral principles. The Level 1 suits freshers in finance. It builds the foundation for the next two levels.
Subjects List
Knowing each discipline, together with its proportional significance, makes it possible to work out an efficient study-planning strategy. The CFA Level 1 subjects are briefly described below:
- Ethical and Professional Standards – Introduction to ethics, professional standards, and the CFA Institute Code of Ethics.
- Quantitative Methods – Time value of money, probability, statistics, and basic quantitative techniques for financial analysis.
- Economics – Microeconomics, macroeconomics, supply-demand dynamics, and international trade concepts.
- Financial Reporting and Analysis (FRA) – Understanding financial statements, ratios, and analysis of company performance.
- Corporate Finance – Basics of corporate governance, capital budgeting, cost of capital, and financial decision-making.
- Equity Investments – Introduction to equity markets, valuation techniques, and industry analysis.
- Fixed Income – Types of bonds, interest rates, and basic bond valuation concepts.
- Derivatives – Understanding options, futures, swaps, and basic risk management tools.
- Alternative Investments – Basics of real estate, commodities, private equity, and other alternative asset classes.
- Portfolio Management and Wealth Planning – Introduction to portfolio concepts, risk-return analysis, and investment planning.
The above-listed CFA Level 1 Subjects compose the pivotal knowledge areas that are to be conquered by every CFA candidate at the Level 1 stage.
CFA Level 1 Subject Weightage
Weightage indicates how much each of the CFA Level 1 subjects contributes to the exam, helping you prioritise your study:
- Ethical and Professional Standards: 15–20%
- Quantitative Methods: 6–9%
- Economics: 6–9%
- Financial Reporting and Analysis: 11–14%
- Corporate Finance: 6–9%
- Equity Investments: 11–14%
- Fixed Income: 11–14%
- Derivatives: 5–18%
- Alternative Investments: 7–10%
- Portfolio Management and Wealth Planning: 8–12%
Focusing more on high-weightage CFA subjects for Level 1, like Ethics, FRA, and Equity, can significantly improve your chances of clearing Level 1.
CFA Level 1 Study Material: Recommended Books
To study CFA subjects for level 1 efficiently, the following resources are highly suggested:
- CFA Institute Official Curriculum – The most accurate and in-depth source.
- Schweser Notes (Kaplan) – Shortened, easy-to-grasp notes perfect for review.
- Wiley CFA Review – Provides practice questions and simple explanations.
- FinQuiz – Good for extra practice questions and mocks.
The official curriculum is the primary resource for beginner students in concept understanding, while the supplementary notes serve for practice and revision of CFA subjects for Level 1.
Core Recommended Study Resources | |
|---|---|
| Resource | Why Use It? |
| CFA Institute Curriculum | Most detailed, must-read for concepts |
| Kaplan Schweser Notes | Best for revision and exam prep |
| Wiley CFA Review | Good explanations and question sets |
| FinQuiz | Strong question banks and mocks |
| AnalystPrep | Good for L3 essay-practice & QBank |
CFA Level 2 Subjects
The CFA Level 2 progresses from Level 1, stressing the application of finance concepts through real-world cases. CFA Level 2 Subjects open up to the entire process of asset valuation, financial analysis, and investment decisions. At the same time, it is given more demanding than Level 1 due to the higher emphasis on analytical skills and case-study style questions.
Subjects List
The CFA Level 2 subjects, like those of Level 1, are more intense, yet they move from theoretical to practical application:
- Ethical and Professional Standards – The importance of ethics remains unchanged, but now the students are exposed to more complex situations and case studies.
- Quantitative Methods – Mastering statistical techniques, regression analysis, and time-series analysis, besides hypothesis testing.
- Economics – The curriculum has changed to emphasise macroeconomic factors that affect investments, such as currency exchange and international trade.
- Financial Reporting and Analysis (FRA) – A plunge into the different areas of financial statement analysis, investments in different companies, and dealing with difficult accounting concepts.
- Corporate Finance – The level of knowledge and skills is high in capital budgeting, risk management, and making decisions about capital structure and dividend policies.
- Equity Investments – Learning and applying equity valuation techniques, analysing industries and companies, and utilising equity portfolios.
- Fixed Income – In-depth study of the valuation of bonds, yield spreads, credit analysis, and structured products.
- Derivatives – The area of pricing and valuing options, forwards, futures, and swaps is also included, as well as different strategies for risk management.
- Alternative Investments – The real estate, commodities, private equity, and hedge fund sectors will be valued and analysed for their potential.
- Portfolio Management and Wealth Planning – The topics of portfolio management, asset allocation, and investors’ risk profile have been treated in more depth and using more sophisticated techniques.
CFA Level 2 Subjects necessitate thorough knowledge of Level 1 concepts and the skill to dissect difficult situations with these tools.
CFA Level 2 Subject Weightage
Weightage guides how much attention each subject should receive during preparation:
- Ethical and Professional Standards: 10–15%
- Quantitative Methods: 5–10%
- Economics: 5–10%
- Financial Reporting and Analysis: 10–15%
- Corporate Finance: 5–10%
- Equity Investments: 10–15%
- Fixed Income: 10–15%
- Derivatives: 5–10%
- Alternative Investments: 5–10%
- Portfolio Management and Wealth Planning: 10–15%
Focus on high-weightage subjects like FRA, Equity, Fixed Income, and Ethics, as they carry significant marks.
CFA Level 2 Study Material: Recommended Books
The recommended materials for Level 2 are primarily concerned with application, practice, and case studies:
- CFA Institute Official Curriculum – Indispensable for grasping ideas and practising item-set questions.
- Kaplan Schweser Notes – Compressed notes for quicker revision and exam-oriented preparation.
- Wiley CFA Review – Supportive for practice questions and thorough topic elucidation.
- FinQuiz & AnalystNotes – More mock tests, question banks and item-set practice.
Considering that Level 2 focuses on practical application, candidates must spend a significant amount of time solving item-set questions and practising case studies using resources from different sources.
CFA Level 3 Subjects
CFA Level 3 is the final phase of the CFA program. It highlights the areas of portfolio management, wealth planning, and the use of investment strategies in practice. CFA Level 3 Subjects do not focus on mastery of individual topics as the previous two levels, but rather on the integration of concepts. It demands the candidates to make investment decisions and answer case-study type questions that represent real-world investment scenarios.
Each examination paper consists of 2 different parts. The first part includes multiple-choice questions, and the second part is made up of descriptive questions that test the students not only on knowledge but also on their ability to communicate and justify investment decisions effectively.
Subjects List
The CFA Level 3 subjects list is as follows:
- Ethical and professional standards – The use of ethics in client management and portfolio, as well as in this case, advanced ethics.
- Behavioural finance – Learning about the irrational side of the investor, the biases and their influence on the decision.
- Private wealth management – Tactics for the individual and the family portfolio management, taxation, and estate planning.
- Institutional Investors – Portfolio management of institutions like pension funds, endowments, and insurance companies.
- Asset allocation – Strategic and tactical allocation of assets, including multi-asset portfolios.
- Fixed income portfolio management – Advanced strategies for bond portfolios, immunisation, and risk management.
- Equity portfolio management – Construction of equity portfolios, evaluation of performance, and investment strategies.
- Derivatives and risk management – The use of derivatives for hedging and managing risks in the portfolio.
- Alternative investments – Real estate, private equity, and hedge funds in the portfolio through their application.
- Portfolio management and wealth planning – Merging all ideas for devising extensive investment schemes.
It also contains essay-type “constructed response” questions, which require the candidates to not only have extensive knowledge but also be able to clearly express and justify the investment decisions made.
CFA Level 3 Subject Weightage
The weightage for Level 3 subjects reflects its focus on portfolio management and wealth planning:
- Ethical and Professional Standards: 10–15%
- Behavioural Finance: 5–10%
- Private Wealth Management: 5–10%
- Institutional Investors: 5–10%
- Asset Allocation: 10–15%
- Fixed Income Portfolio Management: 10–15%
- Equity Portfolio Management: 10–15%
- Derivatives and Risk Management: 5–10%
- Alternative Investments: 5–10%
- Portfolio Management and Wealth Planning: 10–15%
The advice here is that your focus on portfolio management, equity, and fixed income is key to scoring well at this level.
CFA Level 3 Study Material: Recommended Books
For Level 3 preparation, using official materials and practice-oriented resources is essential:
CFA Institute Official Curriculum – Primary source, essential for understanding essay-type and case-study questions.
- Kaplan Schweser Notes – Summarised notes for revision and practice questions.
- Wiley CFA Level 3 Review – Helpful for practice questions and mock exams.
- FinQuiz / AnalystPrep – Useful for mock exams, practice essays, and additional guidance.
Level 3 requires aspirants to combine conceptual understanding with practical application, so practice and mock exams are crucial.
Consolidated Subject Weightage Across CFA Levels | |||
|---|---|---|---|
| Subject | Level 1 | Level 2 | Level 3 |
| Ethical Standards | 15–20% | 10–15% | 10–15% |
| Quantitative Methods | 8–12% | 5–10% | — |
| Economics | 8–12% | 5–10% | — |
| Financial Reporting & Analysis | 13–17% | 10–15% | — |
| Corporate Finance | 8–12% | 5–10% | — |
| Equity Investments | 10–12% | 10–15% | 10–15% |
| Fixed Income | 10–12% | 10–15% | 10–15% |
| Derivatives | 5–8% | 5–10% | 5–10% |
| Alternative Investments | 5–8% | 5–10% | 5–10% |
| Portfolio Management | 5–8% | 5–10% | 10–15% |
Wrapping Up
The CFA qualification is an adventure that increases your intellectual capacity incrementally through three stages. Investment tools, ethics, and financial reporting are the basic subjects of the first level. In the second level, these concepts are applied to analyse and value the assets, while the third level of the CFA program deals with the practical aspects of portfolio management, wealth planning, and strategy application.
It is essential to know the CFA topics for each level, their corresponding weight, and the recommended study materials in order to prepare well and pass the exam more easily. You can come up with a study plan that is both intelligent and efficient by spending time on the high-weightage topics, using the official curriculum and doing mock exams.
A clear roadmap of the CFA syllabus, whether you are a beginner or an experienced finance professional, makes you confident and clear-minded in your approach to each level.
FAQ’s
Are the CFA exams computer-based or paper-based?
Currently, all CFA tests are conducted via computer. The Institute ended a long-term practice and 100% moved to computer-based testing to provide more extensive and better-managed exam slots.
How many hours of study are recommended for each CFA exam level?
To take each exam, the CFA Institute recommends about 300–350 hours of studying, respectively. Nevertheless, some candidates might need more or less time according to their prior knowledge, and 300 hours is generally regarded as a threshold for proper preparation.
What are the subjects in the CFA Level 1 exam?
The first CFA level consists of the following topics: Ethics, Quantitative Methods, Economics, Financial Reporting and Analysis, Corporate Finance, Equity Investments, Fixed Income, Derivatives, Alternative Investments, and Portfolio Management. The first level of CFA subjects that serve as a foundation for the other two levels are the above-mentioned ones.
Can you provide some recommended books for CFA Level 2?
Sure. The well-known and reliable CFA Level 2 study materials are as follows:
- CFA Institute Official Curriculum
- Kaplan Schweser Notes
- Wiley CFA Review
- FinQuiz / AnalystPrep question banks
All these materials give you a good understanding of the concepts, item sets solving, and practice efficiently.
What are the best resources for studying for the CFA subjects?
The most effective method is to integrate several trustworthy sources:
- Official CFA Curriculum for theory
- Schweser Notes for review
- Mock tests and Qbanks from FinQuiz, AnalystPrep, or Wiley
- CFA Institute Learning Ecosystem (LES) for questions at the end of the chapter
- Practising with both theory and practice together gradually creates a solid foundation.
What are the benefits of becoming a CFA charterholder?
The holder of the CFA charter can expect:
- Worldwide recognition in the domain of finance and investments
- Magnificent job opportunities in the areas of equity research, portfolio management, investment banking, and wealth advising
- More salary than non-CFA holders
- Acquaintance with financial analysis and portfolio management at a very deep level
- Foundation of ethics that is strong and recognised by employers
- It is surely among the best qualifications in global finance.
