CFA L1 - Syllabus | Hindi

CFA L1 - Syllabus - Subjects | Hindi How the 10 subjects are linked to each other Financial Reporting and Analysis As we have already made clear, it has nearly 20% weightage, making it an important enough knowledge area for anyone pursuing CFA. This exam tests the knowledge of financial ratios and financial statements commonly employed for the purpose of financial analysis. Along with this, one should be well-conversant in the concepts of revenue recognition, accounts receivables and inventory analysis along with taxes and long-term assets. It must be kept in mind while preparing for this exam that local accounting practices do not hold much relevance as CFA is more of a global exam and focuses on US GAAP and IFRS practices. Corporate Finance This section is rather limited in its scope with merely 7% weightage and covers areas related to capital budgeting, NPV IRR, cost of capital, measures of leverage, basics of dividends and share repurchases along with working capital management and corporate governance of listed companies. Some of the problems addressed include agency problems in the context of agency-principal relationship. Economics This section covers the fundamentals of micro as well as macroeconomics with its primary focus on the latter. It goes without saying that those with an economics background generally tend to do well with macroeconomics and makes it less challenging to assimilate all the information presented with the help of graphical presentations, as is the standard method. This subject has 10% weightage which makes it important enough to be pursued with diligence. Ethics and Professional Standards This is one of the most important areas of study in CFA as the certification program is dedicated to the promotion of universal professional ethics. This is evident in subject weightage as well where ethics is one area which receives comparative weightage in all 3 CFA Levels. This subject covers code of ethics, professional standards and Global Investment Professional Standards (GIPS) as larger part of the ethics aspect as applicable to the financial industry. Quantitative Methods This section is focused on quantitative analysis and mathematically-oriented approaches to address complex financial issues which make this knowledge area of such great value. Some of the most important areas covered in this section include performance measurement, time value of money, statistics and probability basics, sampling and hypothesis testing along with correlation and linear regression analysis. A study of these concepts provides some highly useful tools and techniques for the knowledge areas of fixed income, equities and portfolio management. A proper understanding and grasp of quantitative techniques would help master a good proportion of CFA’s body of knowledge. Alternative Investments This section includes forms of investment not covered under other knowledge areas of CFA. This includes real estate funds, venture capital, hedge funds and commodities. Although this section is short on weightage in CFA Level I, but with proper effort, these sections could be mastered with comparative ease. Derivatives Derivatives are complex financial instruments and this section deals with them specifically, including the fundamentals of futures, forwards, options, swaps, and hedging techniques usually employed. More complex mathematical methods are usually employed for studying these exotic financial instruments but on Level I, most of the material is introductory in nature and the weightage is only 5%, with only about 12 questions in the exam from this section. Equity Investments This section primarily deals with equity markets and covers various tools and techniques available for the valuation of companies – DCF, PE, PBV, PCF etc. This section has nearly 10% weightage with about 25 questions from this section in the exam. Most of the questions could be related to the valuation and analysis of companies. Fixed Income This section covers fixed income markets and instruments and their pricing techniques. Important concepts including yield measures, duration and convexity are discussed. Sequentially, this section deals with bond analysis and valuation before taking up bond’s features before finally moving on to 10 risks related to debt investments. Exam weightage is 10% for this section. Portfolio Management This section deals with fundamental principles of portfolio management and introduces some key concepts including Theory of Modern Portfolio and Capital Asset Pricing Model. Section weightage is only 7% which roughly translates to about 17 questions in the exam. CFA Level1 Books CFA Level1 Syllabus To know more about us visit Finenvision webiste: https://www.finenvision.com/ For more videos visit: https://bit.ly/2l3Dz1D CFA | Financial Modeling Live Classes | Videos Available Globally #CFA #CFAL1 #Financial_management #CFASubjects