CFA - help please!
April 5, 2012 1:39 PM Subscribe
CFA help!
I am a current law + language student from the UK.. my degree will last a total of 3-4 years (depending on certain factors). Recently I find myself thinking of possibly preparing for the CFA..
I did maths up till A Levels (high school) though I scored a C :sheepish: I also did SATII Maths level two and scored a 650.
May I know how best to prepare for a qualification like the CFA? I will have the next 3 years to prepare..
Can anyone share certain strategies? What worked for some Mefi-ers and what didn't? And if so were they influenced by timeframe or personal learning preferences?
Is it really that daunting? I am serious about pursuing it though I have been rather apprehensive about it since I have no background whatsoever in finance and I'm not much of the crammer type.. I learn better through contextual learning. Basically I am just scared of not testing well.
Does anyone know of any finance resources to help cushion the experience for me? And or possibly any sort of maths workbook I could go through either before or alongside the preparation? I'm not sure where to begin with devising a methodological revision plan. Ideally I'd like to actually find the preparation somewhat enjoyable.. or am I being very naive about it?
Thanks very much in advance for your time.
I am a current law + language student from the UK.. my degree will last a total of 3-4 years (depending on certain factors). Recently I find myself thinking of possibly preparing for the CFA..
I did maths up till A Levels (high school) though I scored a C :sheepish: I also did SATII Maths level two and scored a 650.
May I know how best to prepare for a qualification like the CFA? I will have the next 3 years to prepare..
Can anyone share certain strategies? What worked for some Mefi-ers and what didn't? And if so were they influenced by timeframe or personal learning preferences?
Is it really that daunting? I am serious about pursuing it though I have been rather apprehensive about it since I have no background whatsoever in finance and I'm not much of the crammer type.. I learn better through contextual learning. Basically I am just scared of not testing well.
Does anyone know of any finance resources to help cushion the experience for me? And or possibly any sort of maths workbook I could go through either before or alongside the preparation? I'm not sure where to begin with devising a methodological revision plan. Ideally I'd like to actually find the preparation somewhat enjoyable.. or am I being very naive about it?
Thanks very much in advance for your time.
Also, you have to have relevant employment and be sponsored by an employer -- or at least that used to be the case. Regardless, most people require a lot of time and effort to get through it.
posted by cool breeze at 2:03 PM on April 5, 2012
posted by cool breeze at 2:03 PM on April 5, 2012
No, you need to be sponsored by a member of your local CFA chapter to become a member of the chapter. Anyone can sit for the tests.
posted by dfriedman at 2:05 PM on April 5, 2012
posted by dfriedman at 2:05 PM on April 5, 2012
Have you gone through the curriculum on the CFA website? There's plenty of math in there but it isn't too advanced. The real problem with Level I, especially for people who haven't worked in or studied finance, is the breadth of the material.
Given your current field of study, why are you interested in this? What are your career goals? It's not obvious to me that the CFA is for you.
And there really isn't a rush. Some people graduate from university with Level I complete but I don't think it's necessary. The CFA requires three exams taken over three years plus a significant amount of related work experience.
Instead of preparing for the CFA exam three years early, I'd spend my time learning about the investment industry and following markets. If you want an investment job after graduation, being able to talk about a bunch of stocks you've been following (and preferably buying/selling even if it's very small dollars) is 1000x more important than whether or not you passed Level I of the CFA.
Can you work some accounting or finance classes into your studies? That'd be a good start.
posted by mullacc at 2:05 PM on April 5, 2012
Given your current field of study, why are you interested in this? What are your career goals? It's not obvious to me that the CFA is for you.
And there really isn't a rush. Some people graduate from university with Level I complete but I don't think it's necessary. The CFA requires three exams taken over three years plus a significant amount of related work experience.
Instead of preparing for the CFA exam three years early, I'd spend my time learning about the investment industry and following markets. If you want an investment job after graduation, being able to talk about a bunch of stocks you've been following (and preferably buying/selling even if it's very small dollars) is 1000x more important than whether or not you passed Level I of the CFA.
Can you work some accounting or finance classes into your studies? That'd be a good start.
posted by mullacc at 2:05 PM on April 5, 2012
Criteria for becoming a charterholder are here.
Probably also relevant at this point: I am no longer working in finance, and so have been removed from CFA-world for a couple of years at this point.
posted by dfriedman at 2:07 PM on April 5, 2012
Probably also relevant at this point: I am no longer working in finance, and so have been removed from CFA-world for a couple of years at this point.
posted by dfriedman at 2:07 PM on April 5, 2012
Its a test. It can be studied for. The math and basic stats won't be a problem. To mullacc's point its not really clear to me why you are taking it, or at least taking it now. If you are doing it to make yourself more attractive to employers all it really does is answer "Why Finance" in a really blunt way - when you could save the money and the time and come up with a really great answer. If you are taking it because you think you want to be an investment person I'm here to tell you as a CFA myself that it really has very very limited value as an investor once you get past the financial statement analysis stuff on Level 1. Much better off looking elsewhere for that.
posted by JPD at 2:25 PM on April 5, 2012
posted by JPD at 2:25 PM on April 5, 2012
Response by poster: I just realised that CFA requires 4 years of work and that it's UK/EU counterpart is the CAIA.. would that be more appropriate given my geographical location and my degree?
My uk law degree will basically cover the following modules:
Year 1
Constitutional Law
Contract Law
Legal Method and Systems
Year 2
Criminal Law
Tort Law
2 options
Year 3
Land Law
Equity and Trusts Law
2 options
Year 4
European Union Law
Legal Theory I
Legal Theory II
2 options or or Intellectual Property, Legal Practice, and a dissertation.
Year 1 & 2 options (that I am interested in)
Introduction to Comparative law
Law and Commercial Relationships
2 from Legal History 1; Research Writing and the Legal Academy; Law, Anthropology & Colonialism
Year 3 & 4 options (that I am interested in)
Foundations in Company Law
Advanced Studies in Company Law
Dissertation
Legal Practice Option
I will hopefully be studying Chinese alongside the degree as well...
My interest is in.. um.. China, Brazil..emerging markets in general (I'm not a native brit btw), consulting, restructuring, m&a.. but I don't know.. at this point I'd just like to have solid financial knowledge and be able to show it somehow also to open more doors and just.. yeah, I don't really know.. I understand I'd need to incorporate work experience as well.. I'm thinking it all out still.. thanks once again for those who've answered
posted by thespiritroom at 2:29 PM on April 5, 2012
My uk law degree will basically cover the following modules:
Year 1
Constitutional Law
Contract Law
Legal Method and Systems
Year 2
Criminal Law
Tort Law
2 options
Year 3
Land Law
Equity and Trusts Law
2 options
Year 4
European Union Law
Legal Theory I
Legal Theory II
2 options or or Intellectual Property, Legal Practice, and a dissertation.
Year 1 & 2 options (that I am interested in)
Introduction to Comparative law
Law and Commercial Relationships
2 from Legal History 1; Research Writing and the Legal Academy; Law, Anthropology & Colonialism
Year 3 & 4 options (that I am interested in)
Foundations in Company Law
Advanced Studies in Company Law
Dissertation
Legal Practice Option
I will hopefully be studying Chinese alongside the degree as well...
My interest is in.. um.. China, Brazil..emerging markets in general (I'm not a native brit btw), consulting, restructuring, m&a.. but I don't know.. at this point I'd just like to have solid financial knowledge and be able to show it somehow also to open more doors and just.. yeah, I don't really know.. I understand I'd need to incorporate work experience as well.. I'm thinking it all out still.. thanks once again for those who've answered
posted by thespiritroom at 2:29 PM on April 5, 2012
No CAIA is not the UK counterpart. Years ago there was a UK specific qualification that their chapter of AIMR issued. I forget the name. It was merged into the CFA.
CAIA is an alts certification, and not one that is widely seen. I have no idea as its content, but I have worked in and out of the alts space for a while and I've never run up with anyone who has it. Maybe in the FoF world?
But this is really getting weird - what do those law classes have to with a finance certification?
posted by JPD at 2:35 PM on April 5, 2012 [2 favorites]
CAIA is an alts certification, and not one that is widely seen. I have no idea as its content, but I have worked in and out of the alts space for a while and I've never run up with anyone who has it. Maybe in the FoF world?
But this is really getting weird - what do those law classes have to with a finance certification?
posted by JPD at 2:35 PM on April 5, 2012 [2 favorites]
CAIA is for alternative investments and it is not nearly as widely known or respected as the CFA.
posted by dfriedman at 2:38 PM on April 5, 2012
posted by dfriedman at 2:38 PM on April 5, 2012
emerging markets in general (I'm not a native brit btw), consulting, restructuring, m&a.. but I don't know.. at this point I'd just like to have solid financial knowledge and be able to show it somehow also to open more doors and just.. yeah, I don't really know.. I understand I'd need to incorporate work experience as well.. I'm thinking it all out still.. thanks once again for those who've answered
Clearer to me. Yeah don't really sweat the lack of finance experience even if you want to go into finance. When it comes to hiring people right out of school like you there really isn't an assumption that you have any knowledge of nuts and bolts finance. You also are highly unlikely even with a finance background to be hired into an investing business as your first job. Focus on reading as much as you can about the topic and having a really good narrative for why you want to go into the business.
posted by JPD at 2:42 PM on April 5, 2012
Clearer to me. Yeah don't really sweat the lack of finance experience even if you want to go into finance. When it comes to hiring people right out of school like you there really isn't an assumption that you have any knowledge of nuts and bolts finance. You also are highly unlikely even with a finance background to be hired into an investing business as your first job. Focus on reading as much as you can about the topic and having a really good narrative for why you want to go into the business.
posted by JPD at 2:42 PM on April 5, 2012
CIIA def not. CFA is hugely international. Still don't think you should take it.
posted by JPD at 2:42 PM on April 5, 2012
posted by JPD at 2:42 PM on April 5, 2012
I'm much older and taking the CFA (Level II in June). Some more thoughts on the CFA:
1. It's not trivial if you don't have a finance background. That being said, the math is easy, it's just a matter of remembering all the formulas - what's the difference between current ratio and acid test? Note the pass rates on the test: 38% for LI, 40% LII, 50% LII (more or less). Note that I took Level 1 twice, so that 38% includes people who've taken it multiple times.
2. Are you interested in the materials? Download the syllabus for Level 1 and/or buy last year's Level 1 books and read them. If you're not interested in why a bond's price goes up when it's yield goes down, it's going to be hard to study for the whole thing
3. This isn't a test you can cram for successfully unless you have a finance/business undergrad and are doing this work daily. I've been studying for Level 2 since December. Also - I've basically spent January thru June for the last 3 years studying and not going out on the weekends/having fun/having a life. If that sounds like fun to you, sign up.
4. From what I gather, there is little value on the market to passing just Level 1, but much more value to passing Level 2. However, taking Level 1 might tell you whether or not continuing to study is for you.
5. Final thing - what's the last book you read? Last time you read WSJ/FT/Economist? Last "business" book you read? If you're not interested in the material, it's going to be a bit more of a slog getting thru the material.
Hope that helps, I don't want to discourage you, but its also not something to go into thinking you're going to pass all three quickly and easily.
posted by Farce_First at 4:46 PM on April 5, 2012
1. It's not trivial if you don't have a finance background. That being said, the math is easy, it's just a matter of remembering all the formulas - what's the difference between current ratio and acid test? Note the pass rates on the test: 38% for LI, 40% LII, 50% LII (more or less). Note that I took Level 1 twice, so that 38% includes people who've taken it multiple times.
2. Are you interested in the materials? Download the syllabus for Level 1 and/or buy last year's Level 1 books and read them. If you're not interested in why a bond's price goes up when it's yield goes down, it's going to be hard to study for the whole thing
3. This isn't a test you can cram for successfully unless you have a finance/business undergrad and are doing this work daily. I've been studying for Level 2 since December. Also - I've basically spent January thru June for the last 3 years studying and not going out on the weekends/having fun/having a life. If that sounds like fun to you, sign up.
4. From what I gather, there is little value on the market to passing just Level 1, but much more value to passing Level 2. However, taking Level 1 might tell you whether or not continuing to study is for you.
5. Final thing - what's the last book you read? Last time you read WSJ/FT/Economist? Last "business" book you read? If you're not interested in the material, it's going to be a bit more of a slog getting thru the material.
Hope that helps, I don't want to discourage you, but its also not something to go into thinking you're going to pass all three quickly and easily.
posted by Farce_First at 4:46 PM on April 5, 2012
I am also going through the CFA right now. I also worked in investments in the UK for six years (and am now doing the same in the US). I am not familiar with the CIIA but I do have the MCSI designation in the UK, which is similar in a lot of ways to the CFA but not the same.
For all of the exams for my MCSI designation I took the corresponding courses through BPP in London. They are excellent providers and I would highly recommend them. I am doing self-study for the CFA, which I feel I can do ONLY because of my background in nearly all the areas of study through my previous exams; for which I took courses. If you do not have any real background in finance it will be a very difficult exam and I would definitely recommend taking a course to familiarise yourself with the content. That said, once you do start your revising, the practice exams are hands down the best way to retain the material, as dfriedman mentioned. I am focusing my studying on doing this, and with two large textbooks full of questions, plus 4000+ questions in the QBank online, there is no shortage of practice questions.
You don't need a finance background to do this - you'll just have to put in a bit more work than a person with that kind of foundation. Starting by reading the FT daily will help, as will having a genuine interest in finance and economics. Some of the material covered in the CFA is very dry and and a real curiosity and interest in the subject matter will be what gets you through that. Three years is a good amount of time to get up to speed on the industry and to learn a fair amount. Given that you are in university now, if it is possible to take micro or macro economics (at the very least) alongside your law courses, you should do it as that knowledge will be a meaningful foundation for you to have.
Sorry if this seems a little rambling - I've had a very long week in a conference and I'm now coming down with something so my mind's a little shot. I know there was more I wanted to say but I've forgotten now, which probably means I need to go to sleep. Good luck and if you have any other questions, please feel free to email me.
posted by triggerfinger at 8:41 PM on April 5, 2012
For all of the exams for my MCSI designation I took the corresponding courses through BPP in London. They are excellent providers and I would highly recommend them. I am doing self-study for the CFA, which I feel I can do ONLY because of my background in nearly all the areas of study through my previous exams; for which I took courses. If you do not have any real background in finance it will be a very difficult exam and I would definitely recommend taking a course to familiarise yourself with the content. That said, once you do start your revising, the practice exams are hands down the best way to retain the material, as dfriedman mentioned. I am focusing my studying on doing this, and with two large textbooks full of questions, plus 4000+ questions in the QBank online, there is no shortage of practice questions.
You don't need a finance background to do this - you'll just have to put in a bit more work than a person with that kind of foundation. Starting by reading the FT daily will help, as will having a genuine interest in finance and economics. Some of the material covered in the CFA is very dry and and a real curiosity and interest in the subject matter will be what gets you through that. Three years is a good amount of time to get up to speed on the industry and to learn a fair amount. Given that you are in university now, if it is possible to take micro or macro economics (at the very least) alongside your law courses, you should do it as that knowledge will be a meaningful foundation for you to have.
Sorry if this seems a little rambling - I've had a very long week in a conference and I'm now coming down with something so my mind's a little shot. I know there was more I wanted to say but I've forgotten now, which probably means I need to go to sleep. Good luck and if you have any other questions, please feel free to email me.
posted by triggerfinger at 8:41 PM on April 5, 2012
This thread is closed to new comments.
The best way to prepare for the CFA examinations is to do lots of practice problems and practice exams.
Is it daunting? That depends on your willingness to study and your comfort with six-hour long tests.
The pass rates are rather low, but a lot of people also significantly underestimate the amount of material on the exams.
posted by dfriedman at 1:44 PM on April 5, 2012