CFA Level 2 is the second stage of the prestigious certificate course that is offered by the Chartered Financial Analyst (CFA) Institute. CFA is a professional certification program recognized worldwide which provides competencies and skills required in the financial industry. The CFA Level II gives knowledge about concepts related to equity, finance, investment management and valuation.
CFA Level II is conducted twice a year. To pursue CFA Level II one must qualify for the CFA Level I exam and have completed their graduation in any stream. Apart from academic qualifications candidates should also gain 4 years of working experience.
The exam structure of CFA Level 2 comprises a short descriptive essay and 88 MCQs in 22 item sets. CFA Level 2 Duration is 4 Hours and 24 Minutes which is divided into 2 equal halves and an optional break between them.
CFA Level II is offered online as well as Offline mode through various Foreign as well as Indian Institutes. Some of the popular CFA institutes in India offering CFA courses include Narayana Business School Ahmedabad, Central India Institute of Management Studies Jabalpur, ICFP Delhi, etc. The average fees for the CFA course Level 2 can range from INR 1,90,000 – 5,60,000.
Candidates after completing CFA course level 2 can find lucrative job opportunities or can go for the next level of the CFA course. CFA Jobs include high-profile designations like Chartered Financial Analyst, Business Consultant, Market Research Analyst, Investment Manager and many others. The average salary after a CFA course level 2 can be between INR 4 - 20 LPA.
CFA Course Highlights: Level 2
Tabulated below are some important CFA Level 2 course highlights.
| Particulars | CFA Course Level II |
|---|---|
| Course Level | Professional Credential |
| Offering Institute | CFA Institute, USA |
| Eligibility | Must have passed CFA exam Level I and must be a Graduate. Aslo one should have 4 years of relevant work experience. |
| Frequency of the exam | Generally twice a year. |
| Entrance Exams | No |
| Average Fee | INR 1,90,000 – 5,60,000 (Overall) |
| Job Prospect | Chartered Financial Analyst, Business Consultant, Market Research Analyst, Investment Manager, etc. |
| Average Salary | INR 4,00,000 - INR 40,00,000 per annum. |
CFA course Level 2 Requirements
The CFA Level 2 requirements or eligibility criteria are pretty straight forward. The candidates are required to check for the CFA Level 2 requirements or eligibility criteria before they start registering for the examination.
The following are some of the eligibility requirements for the CFA course Level 2 Examination
- Academic Requirements: For CFA Level 2 candidates should have passed their CFA Level 1 examination. Also, they must have a Bachelors’ degree or equivalent from a recognized university.
- Work Requirements: Along with academic qualifications, candidates must also have at least 4 years of professional experience in the same field.
- Documents Requirements: Candidates need to submit all the necessary documents like the passport required for the CFA course Level 2 Exam.
- Other Requirements: Also the candidates should be proficient in English as CFA course Level 2 study material as well as the exams would be conducted in the English language.
CFA Level 2: Registration Process
After the candidates meet the CFA course Level 2 requirements, the candidates must proceed to complete the CFA Level 2 Registration. The registration process for the CFA course level 2 is mentioned below:
- The candidates are required to visit the official website of the CFA institute ( https://www.cfainstitute.org/ ) for registration.
- Then they should log in with the registered ID and password created for CFA Level 1 registration and choose the Level 2 of the CFA Program.
- Thereafter one must fill in the appropriate details like CFA exam Level 1 results, working experience and other details for verification.
- After that one should select the cities from where they wish to appear for the exam. In India, there are 11 cities where the CFA Level 2 exam is conducted.
- Then the candidates are required to select the mode in which they want to receive the study material from the institute.
- At last, one must pay the required registration fee through credit card, wire transfer, ACH, cheque, postal order or money order
- Before submitting the form one must review that and then submit and print out CFA level 2 registration for future reference.
CFA Level 2 Fees Details
The following table shows the fee details for the CFA course Level 2 program:
| Details | Fees |
|---|---|
| Enrolment fee of CFA program | USD 450 (INR 33,354) |
| Registration fee (Early Bird) | USD 700 (INR 51,884) |
| Registration fee (standard) | USD 1000 (INR 74,121) |
| Late registration fee | USD 1450 (INR 107,475) |
CFA Level 2 Syllabus
CFA covers 10 core subjects that are taught during the three levels of the exam. The three levels of the CFA exam are CFA Level 1, CFA Level 2 and CFA Level 3. The CFA Level 2 exam covers various topics such as the Application of the Investment Valuation concept, Investment Tools, Ethical and Professional Standards, Portfolio Management and Wealth Planning.
Tabulated below is the detailed breakdown of the CFA exam Level 2 subjects or syllabus based on the weightage.
| Core Curriculum Topics | Exam Weightage (%) |
|---|---|
| Ethical and Professional Standards | 10–15% |
| Quantitative Methods | 5–10% |
| Economics | 5–10% |
| Financial Statement Analysis | 10–15% |
| Corporate Issuers | 5-10% |
| Equity Investments | 10–15% |
| Fixed Income | 10–15% |
| Derivatives | 5–10% |
| Alternative Investments | 5–10% |
| Portfolio Management and Wealth Planning | 10–15% |
CFA course Level 2 Syllabus: Subject Details
The details of CFA Level 2 subjects are mentioned below:
- Ethical and Professional Standard: Ethical and Professional Standard section focuses on ethical behavior and the need for professionalism in the investment market.
- Quantitative Methods: This section deals with the Descriptive Statistics, Probability Theory and Investment decision making aspects.
- Economics: Economics deals with the study of supply and demand analysis of individuals and firms, along with microeconomic concepts and market structure.
- Financial Statement Analysis: Financial Statement Analysis explains the study of financial reports along with their standards and procedures.
- Corporate Issuers: Corporate Issuers deal with the study of corporate governance and stakeholder management.
- Equity Investments: The Equity Investments section is related to the study of the security markets, indexes and equity investment areas of the economy.
- Fixed Income: Fixed Income, this section of the CFA subjects covers all the important key concepts of the fixed income including credit analysis, term structure and their valuation and helps in Learning about the fixed income securities, factors risking it, measures to maintain it and it’s measurement techniques
- Derivatives: This section helps in understanding the basics of derivatives and the framework of the derivative market.
- Alternative Investments: This section involves the study of concepts of asset classes such as hedge funds, private equity, real estate, infrastructure and others. It also covers equity and fixed income concepts apart from asset classes.
- Portfolio Management and Wealth Planning: Portfolio Management and Wealth Planning helps with the proper understanding of fundamentals of portfolio management and wealth planning.
CFA Course Level 2 Exam
The CFA course Level 2 Exam pattern with important details and guidelines are mentioned below.
- The overall duration of the CFA exam level 2 exam is for a period of 4.5 Hours.
- The CFA exam Level 2 has been divided into two halves, each of which has 2.15 hours with an optional break in between.
- There are a total of 88 Vignette-supported Multiple choice questions. Thus there would be 44 questions in each session.
- There would be a total of 4-6 MCQs after each Vignette. Each MCQs is awarded 3 points for each correct answer.
- CFA Level 2 focuses on the valuation of various assets and emphasizes the application of investment tools and concepts in contextual situations.
- The average passing rate is 45%.
CFA Level 2 Exam Dates
The CFA Level 2 Exam dates have been mentioned below.
| Session | Registration Dates | Level 2 - Exam Dates |
|---|---|---|
| May Session | August 9, 2022 to November 9, 2022 | 23–27 May 2023 |
| August Session | November 14, 2022 – February 1, 2023 | 29 August, 2023 - 2 September 2023 |
| September Session | January 31, 2023 – May 10, 2023 | 18 - 22 November 2023 |
CFA Level 2 Result 2023
The CFA Institute releases the result within 60 days after conducting the CFA level 2 exams. The result can be checked by candidates on the official website by logging into their CFA account. Alongside, CFA Institute also provides the results to candidates on their registered email addresses and phone number.
How to check the result -
- Step 1 - Login to the official website of CFA - www.cfainstitute.org
- Step 2 - Login to your account and click on the option “CFA level 2 result”
- Step 3 - Detailed CFA level 2 result will be displayed on the screen
- Step 4 - Download and print it for future reference
Qualified candidates can proceed to register for the next stage - CFA level 3. The CFA Institute has also updated the CFA level 3 exam dates on its website.
Why is the CFA course in demand?
CFA Level 2 is a stepping stone to achieving the CFA certificate. The course is in high demand due to the following reason:
- India is considered to be the accounting hub of the world. Most Financial MNCs have their company operations in India. So, a CFA Certificate offers a huge opportunity and vast scope.
- The CFA certification offered by the CFA institute is worldwide recognized and is accepted in over 165 countries around the world.
- CFA graduates are hired in high profile positions in the financial business. The majority of CFA are hired by the world's leading financial organizations such as JP Morgan Chase, Bank of America ML, HSBC, Wells Fargo, Morgan Stanley, and others.
- The Stock Brokers in India are expanding their knowledge and scale of operations outside the Indian boundary. A CFA degree is favorable for expansion operations like these. The curriculum of the CFA course imparts the candidates with knowledge of the different aspects of the primary and secondary markets and their function.
- The average salary after CFA Level II can be anywhere between INR 4,00,000 - INR 40,00,000 per annum which is much more than several other high profile jobs.
- The Wealth Management Industry is growing rapidly at the rate of 20% YOY. The demand for CFA and CA has increased as the major proportion of financial companies are coming to India. The wealth management firms of India require the CFA graduates to provide services for planning and managing the investment and financial planning of individual investors.
- International firms are now focusing on reducing labor costs due to the global COVID-19 Pandemic. Most of the KPOs, Investment banking and certain financial Servicing firms are moving back to India due to the available cheap labor. A CFA degree will hold great value as it holds the highest credential in India’s Investment Finance Industry.
Check: CFA Level I Jobs and Salary
Skills required to pursue CFA Level 2
Some of the crucial skills required for the CFA course is given below for your reference:
| Communication Skill | Computer Skills |
| Ability to understand trend | Math Skills |
| Focused Mind | Curiosity |
| Time Management | Integrity |
| Decision Making Skills | Computer Skills |
Jobs and Salary
CFA Level 2 enables you to land a lucrative and highly paid job opportunity in the private as well as government Financial and Investment sectors. Also one can go for the next level of the CFA course which is CFA Level 3.
According to the CFA Institute, most CFA graduates are hired in high-profile positions in the financial business. The majority of CFA are hired by the world's leading financial organizations such as JP Morgan Chase, Bank of America ML, HSBC, Wells Fargo, Morgan Stanley, and others. One can get various high profile CFA job opportunities and can develop their career as an Investment manager, Portfolio manager, Risk managers or even Chief Financial officer.
Apart from lucrative jobs, one can also start their own Business. The average salary one can expect to earn at the start of their career after completing CFA course Level 2 can be anywhere between INR 4,00,000 - INR 40,00,000 per annum depending upon the various parameters. Some of the high profile job opportunities along with their job description and average annual salary are mentioned in the table below:
| Job Profiles | Job Description | Average Annual Salary |
|---|---|---|
| Chartered Financial Analyst | Chartered Financial Analysts are responsible for making the financial decisions of the company regarding investment management, tracking stock performances, etc. They have to research and track the financial position of the different companies as well as individuals. | INR 4,00,000-INR 16,00,000 |
| Business Consultant | The business consultants are concerned with the different aspects of the business such as finance, accounting, marketing, operation, etc. They are concerned with the overall operation and effectiveness of the business | INR 989,000 |
| Market Research Analyst | They are responsible for collecting data from the market from the customers, competitors, etc. They take stock of the entire market conditions and provide the company’s top brass information about the next course of action. | INR 337,000 |
| Investment Manager | The duty or the main job role of the investment manager is to provide the companies or individual clients with advice regarding the various investment options such as buying or selling of bonds, mutual funds, securities and stock. | INR 13,00,000 |
| Portfolio Manager | Portfolio Managers are responsible for creating and managing the investment portfolio of different clients. Also they try to understand the trend in the market and maximize the client's return on investment. | INR 10,86,000 |
| Private Bankers | They help their individual clients to maintain their individual accounts and financial risks and services. They also sell various financial services of the bank to the individual clients | INR 624,000 |
| Risk Manager | They identify the financial risk that the organization may face in the future and try to find a solution so that they are able to mitigate the risk. They also check the financial risk of new business ventures | INR 998,000 |
| Chief Financial Officer (CFO) | The CFO or Chief Financial Officer is responsible for managing all the financial resources of the organization and assessing the risk and opportunities of different ventures. They collaborate with the different subordinates to make the best decision for the company | INR 34.45,992 |
Top Recruiters for CFA Level 2
CFA or Certified Finance Analysts graduates are mostly hired by top-notch leading Financial organizations. Some of the popular and top companies or organizations that offer huge employment opportunities to the CFA (Certified Finance Analysts) are given below in the table chart:
| JP Morgan and Co | HSBC | Credit Suisse |
| Hindustan Unilever Ltd | The Goldman Sachs Group Inc. | Crisil |
| Axis Bank | HDFC Bank | Emami Agrotech Ltd |
| ITC | ICICI Bank | Aditya Sun Life |
| ICRA | SBI Bank | Reliance Industries Limited |
| Bharti Airtel | Citigroup | Deloitte |
| PwC | Earnst and Young | - |
CFA Level 2: FAQs
Ques. Is CFA Level 2 hard?
Ans. Yes, CFA course level 2 is considered as the hardest level of all the three levels of the CFA exam. It is more intense and covers the in-depth knowledge of the 10 CFA subjects or CFA topics and focuses more on their application. Another reason for CFA course Level 2 being the hardest one is because for CFA course level 2 candidates have to answer vignette-style multiple choice questions (MCQs) which is new in CFA course Level 2.
Ques. What is CFA course level 2 eligibility?
Ans. One must have to qualify the CFA Level 1 to be eligible for CFA course Level 2. Also one must complete their bachelor's degree in any discipline (Science, Arts, or Commerce) from a recognized University. Apart from fulfilling the academic qualifications for the CFA level 2 program candidates are also required to gain some working experience. Candidates must have gained at least 4 years of working experience in the field of investment market, finance sector or any other relevant fields.
Ques. How much harder is CFA Level 2 vs Level 1?
Ans. CFA course or CFA exam Level 2 is much harder than CFA level 1. It is because CFA Level 2 covers the in-depth knowledge of the 10 CFA subjects or CFA topics and focuses more on their application. CFA Level 2 is harder due to a more detailed and different exam format which forces candidates to have deep knowledge of all the concepts and CFA course details. Apart from this, CFA course level 2 contains vignette-style multiple choice questions (MCQs) which makes it even more difficult than CFA Level 1.
Ques. Is CFA Level 2 multiple choice?
Ans. Yes, CFA Level 2 is a Multiple Choice. Like CFA Level 1, CFA Level 2 also contains Multiple Choice Questions or MCQs but it contains vignette-style multiple choice questions (MCQs). There will be a total of 88 multiple choice questions divided into two sets. The exam pattern is divided into two sets. Half of the set is for the morning while the other half is for the afternoon session.
Ques. How much does a CFA Level 2 earn?
Ans. The average salary one can expect to earn after completing CFA Level 2 at the starting of their career can be anywhere between INR 4,00,000 to INR 40,00,000 depending upon the various parameters such as Job Designation, Region, Company and many others. However, In India according to various reports the average salary of CFA Level 2 can range between INR 6,00,000 to 10,00,000.
Ques. How long should you study for CFA Level 2?
Ans. To qualify CFA level 2 with a good score, one should study approximately 350 hours which is four to six months. As it is harder than CFA Level 1 one should study more deeply for good scores. One should study more than 4 hours a day to cover the whole syllabus as early as possible and can start practicing sample papers and previous year question papers to qualify for the CFA Level 2 exam.
Ques. How many times can you take CFA Level 2?
Ans. Candidates can take CFA Level 2 two times a year. The CFA level 2 exam is conducted two times a year during the months of August and February. Candidates can make two attempts for the CFA Level 2 exam in a year, one cannot make an attempt not less than six months before.
Ques. How do I practice for CFA Level 2?
Ans. To practice for CFA Level 2, one must study more than 350 hours to score good grades. That means one needs to study around four to six months. Students need to practice old year question papers, mock tests and several sample papers. One needs to focus more on the application and in-depth concepts of all the various 10 CFA subjects or topics mainly on portfolio management.
Ques. Can you take CFA Level 1 and 2 in the same year?
Ans. Yes, one can take CFA Level 1 and 2 in the same year. Candidates can only apply for CFA level 2 if they have qualified the CFA Level 1. If the candidates have qualified the CFA Level 1 in the February or April session then one can apply for CFA level 2.
Ques. Can I get a job after CFA Level 2?
Ans. After the completion of the CFA Level 2, one can find lucrative and highly paid job opportunities in the private as well as government Finance and Risk sectors. One can get various high profile CFA job opportunities and can develop their career as Investment managers, Portfolio managers, Risk managers or even Chief Financial officers.
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