![]() by Girl Banker® Listen to the iTunes podcast instead. In Sep-2006, as a second-year Goldman analyst one of my Associates text me to ‘show-off’ that he had just passed level 3 of the Chartered Financial Analyst program, CFA. I was kind of jealous! I knew it was a definite plus on his CV because I’d heard that it was extremely challenging. I thought, ‘If he has the time to study for the CFA, I can make time too!’ It was September already but I still applied for the Dec-2006 Level 1 exam. I passed. I passed the next two levels in Jun-2007 and Jun-2008 respectively. What is on the CFA curriculum? There is a little bit of everything finance-related. The beauty of Level 1 is that it is very broad, immensely interesting and really not that difficult. It was through Level 1 I developed an interest in derivatives. I started trying to move from IBD to the capital markets a few months after I completed the exam– the better working hours were also a huge lure for me. Level 2 is generally accepted to be the hardest level. It was, for me, also the most boring. There is so much nitty gritty detail on accounting – not my favourite topic. Level 3 is very focused towards asset/portfolio management. There is lots of in depth information about how to look at asset portfolios, how to choose between different asset classes and how to manage other people’s money. ![]() HOW COULD THE CFA HELP YOU? 1. It will stand out on your résumé/CV The CFA qualification is well regarded because its modules are highly relevant to different areas of banking and because CFA Institute only allows the best 35-45% to pass any sitting. 2. Your chances of getting invited to interviews may rise Case in point: one of my colleagues did his first degree in Lebanon followed by a Master’s degree at a good UK university. When it came to looking for a job, he says he didn’t get a single response after sending out his résumé/CV so he decided to sign up for CFA Level 1. When he sent his résumé/CV out again he started getting interview invitations. He’s one of the best derivative salespeople I know so it just goes to show that banks can have trouble sifting through the many applications. 3. It may help you to decide where in an investment bank you would best fit Some bankers think the CFA qualification looks a lot better if you did it whilst you were working rather than when you were in university or looking for a job; however, I would argue that it adds a lot of value to your résumé/CV no matter when you do it. It’s not easy. 4. Your chances of ever becoming unemployed (apparently) fall Of the 100,000 current full CFA Charterholders globally (i.e. people who completed and passed CFA exams 1, 2 and 3) and according to the CFA Institute’s own figures only 4% of them are unemployed at any time. You can read a full piece on this on eFinancialCareers. ![]() DO YOU HAVE TO TAKE A TAUGHT COURSE TO PASS THE CFA? I didn’t and I still passed all 3 levels the first time. For me, paying someone to teach me would have been a big waste of dosh. When I am around other people I usually want to chat. For the same reason, I also didn’t join any study groups. What was my strategy? Time was limited. I didn’t read the CFA’s own materials, they’re too thick. I ordered self-study materials (five books, Audio CDs, QuickSheets and Practice exams) from Schweser. I studied properly on weekends (both days); during the week I listened to the audio CDs on my way into work. I was always too tired to do any revision after work. I took exactly one week off prior to each exam. By this time, I had been through all the study material once. Each time, I created a schedule to ensure this was the case. So what did I do in this one week? Exam practice! One exam per day. As I went through the practice exams, the areas I needed to work on jumped out at me, so I re-read just these modules. What about my social life? What social life? I killed it. I went out to dinner like a couple of times per month. However, when the CFA was over ‘freedom’ felt so much sweeter. I wrote the last exam in Jun-2008 but even today, four years later, the idea of combining a full-time job with the CFA still gives me the hibby jibbies.
50 Comments
Yi Zhou
11/8/2016 11:32:17 am
I like the article. Actually, I am recently thinking about if it is necessary to take the CFA. After reading this article, I decided to thinkg about that more seriously..
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Heather as "Girl Banker"
11/8/2016 11:32:39 am
Thanks Yi Zhou. Feel free to ask me more questions. You should also get a copy of my book To Become an Investment Banker to help you figure things out.
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ChampDeVecteur
11/8/2016 11:33:28 am
Hi, I was also thinking of a CFA.
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Heather as "Girl Banker"
11/8/2016 11:33:50 am
I agree with that. Quants need to show a higher aptitude for mathematical concepts so you would be better served with such qualifications.
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Johnny Bravo
11/8/2016 11:36:15 am
2008 was a watershed moment for the CFA, something they've only just woken up to and reflected in their syllabus. Pre-2008, the CFA was the ultimate bauble on one's CV and there were countless articles on why the CFA was better than an Ivy MBA(!) and both recruiters and clients treated those cherished 3 letters with the respect they deserved.
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Heather as "Girl Banker"
11/8/2016 11:37:50 am
Hi Johnny,
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Sandeep
11/8/2016 11:38:17 am
Hi Girl Banker,
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Heather as "Girl Banker"
11/8/2016 11:38:48 am
Hi Sandeep,
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suman
11/8/2016 11:39:20 am
Hi,i am aspiring for cfa 1dec,2012, can you help me with materials.
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Heather as "Girl Banker"
11/8/2016 11:39:38 am
Schweser produce the best materials in my opinion, purchase from their website: http://www.schweser.com/cfa/
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GB Follower
11/8/2016 11:40:07 am
GB - your comments and information have been so helpful, I am trying to work out whether I really am intelligent enough for CFA. Some others reading this will automatically jump to the conclusion that because I am questioning this then I am not.
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Heather as "Girl Banker"
11/8/2016 11:40:27 am
Many thanks for your comment!
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CareerAdvice
11/8/2016 11:41:00 am
The following, although published 5 years ago, remains pertinent to this topic:
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Heather as "Girl Banker"
11/8/2016 11:41:25 am
Thanks for that very thorough explanation of why the CFA still stands as a great qualification to have. I agree with your analysis.
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SeeWhy
11/8/2016 11:41:51 am
I(from NYC) have been unemployed for 18months now after graduation and have no had any opportunities offered to me. I would love to work in investments as numbers and charts definitely fascinate me.
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Heather as "Girl Banker"
11/8/2016 11:42:10 am
Thanks for the post.
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Heather as "Girl Banker"
11/8/2016 11:42:36 am
p.s. the more questions you do, the better you get. If you feel you are not improving, re-read that material/topic again to understand it better. This is what works for me.
SeeWhy
11/8/2016 11:43:37 am
Thanks GB,
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Frenchagain
11/8/2016 11:44:01 am
I am currently a VP working in a DCM origination team for a Tier 3 bank in London. Do you think that a CFA could add value to my CV or is it too late?
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Heather as "Girl Banker"
11/8/2016 11:44:41 am
I assume you want to do it to move to a bigger and better bank? I would say a CFA adds less value to a CV as you move up. In your case, it might only add value if you were looking to move into a new product area. Even then, it would be more for your personal benefit i.e. so that you don't have to look stupid by asking the Associates questions.
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AM
11/8/2016 11:45:09 am
Hi GB !
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Heather as "Girl Banker"
11/8/2016 11:45:29 am
Good luck!
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MESA
11/8/2016 11:45:49 am
Dear,
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Heather as "Girl Banker"
11/8/2016 11:46:08 am
With an MBA you should be able to apply for jobs in investment banking. Of course the CFA would look good on your CV but it's not going to get you the job of its own accord. Employers look at the total person, previous achievements etc. Importantly, how old are you?
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MESA
11/8/2016 11:46:41 am
Dear,
MM
11/8/2016 11:47:00 am
Dear,
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Ibrahim
11/8/2016 11:47:26 am
I have recently graduated from an average university with a lower class degree in economics due to various reasons and have since been working for a small time brokerage firm for 6 months. I also recently turned 25 and therefore haven't done very well in my life thus far but what I do have is a lot of motivation and ambition to dare dream of making a success of myself either as an analyst or within Investment Banking.
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Heather as "Girl Banker"
11/8/2016 11:47:47 am
Thanks for asking.
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sheharyar niaz
11/8/2016 11:48:36 am
hi.....i have done with ACCA(associate chartered certified accountant) and an hounarary degree of bsc(hons) in accounting and finance from an averege uk university.....i am 24 right now and wanted to start with CFA is it an option to pursue or should i do something else ..... i am a pakistan based student abd can move abroad for studies and careers....i have no experience
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Rosario
11/8/2016 11:49:00 am
Dear,
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Avinav
11/8/2016 11:49:23 am
guys i am done with grad'n in commerce and was keen to start off frm and cfa. but,after i heard some tragedies of some of my frnz who cud not make it at L-2 of cfa, i decided to do masters in mathematics and then proceed for cfa .plz suggest me if i have taken r8 decision!!
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Nirupama Aiyer
11/8/2016 11:49:43 am
hello,
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fred
11/8/2016 11:50:07 am
Hi, I have good basics in economics but not enough to manage a portfolio. Do you think that the cfa qualification can be sufficient to invest assets seriuosly? If not, what would suggest?
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Kunal
11/8/2016 11:50:24 am
I am B.TECH (Elect & Comm) and MBA(Core finance)....I am really good in finance..and confidend in clearing CFA levels atleast 1 very eaisily...I joined in Thomson Reuters as a Financial Planning and analysis profile..Now, just wanted to know Do the CFA will add value..As the profile seems to be not matching with the core finance jobs like M&A, Inv.Banking, equity/Fixed Income research...I am higly interested in those carrier..So help me...
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Amit Kanabar
11/8/2016 11:50:51 am
Hi,
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nitin
11/8/2016 11:51:13 am
Hi, I wanna knw whether cfa is tougher than ca?
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Gilberto
11/8/2016 11:51:34 am
Hi, I am currently doing a PhD in particle Physics at Durham University and I hold a master on Applied Mathematics by the University of Cambridge. However, I have realized recently That I would like to try something different after finishing the PhD, so somehow I have become interested in finance, at the moment I do not have any knowledge about but I think my mathematical foundations will make the things easier. The CFA test seems to be very attractive for different reasons. Roughly speaking what sort of mathematics do you require in level 1?.
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Haris Mehmood
11/8/2016 11:51:58 am
Hi there, you are doing an excellent work. Your blog was really helpful. I am a graduate from Portsmouth Uni with 2:1 in telecoms and since worked in Sony for 2 years and have now been working for Barclays Retail as a personal banker. I have got admission in Bath Uni for MBA starting sep. im v confused about my job prospects after Mba and thus have already started consider CFA only because of my experience has been in sales and not a graduate level because of visa's family life etc. all the prospective employers ask abt what have you done rater can you learn ? Please help. This thought bring my confidence to ground.
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Sean Chen
11/8/2016 11:52:22 am
Hello Girl Banker,
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sunny
11/8/2016 11:52:42 am
hey!
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sunny
11/8/2016 11:53:07 am
hey!
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Edwin
11/8/2016 11:53:25 am
I found this article extremely useful. I have been thinking about taking CFA level 1 for some time now, and being at the back end of my degree course I believe I am ready. You have given me that much needed nudge to booking my exam.
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Pooja
11/8/2016 11:53:45 am
Hi,
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Ketan Jain`
11/8/2016 11:54:06 am
Hi
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Jordan
11/8/2016 11:54:30 am
Great article thank you. I am an investment analyst for a private equity real estate fund in London. I am looking to further my career within real estate and progress into senior maybe even executive level positions within the real estate industry. Would the CFA be suitable for my career goals?
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Sudarshana
11/8/2016 11:54:53 am
hello girlbanker
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Mike
11/8/2016 11:55:10 am
I would like to add another question to your answer. I am already fully employed and will be reaching into my 40's soon. Would you recommend taking this test to a person of my age? Or do you consider my age to be too old. It is my understanding that Investment banking is a young man's game, with early retirement common practice.
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Heather as "Girl Banker"
11/8/2016 11:55:28 am
I don't like being negative but yes, you would not be considered for junior roles and the CFA would not change that. Sorry!
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Shiney Fotedar
11/8/2016 11:55:57 am
This article was really helpful...m planning to buy the book.
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Carlos Esteban
11/8/2016 11:56:22 am
Dear GB,
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Girl Banker®I created my investment banking blog in 2012 as soon as I resigned from i-banking & published my book, To Become An Investment Banker.
Initially published at girlbanker.com, all posts have now been subsumed into my personal website under katsonga.com/GirlBanker. These blog posts make it as straight-forward for you as possible to get into a top tier investment bank. I have 7 years of front office i-banking experience from Goldman Sachs and HSBC, in both classic IBD (corporate finance) and Derivatives (DCM / FICC). I'm also a CFA survivor having passed all three levels on the first attempt within 18 months - the shortest time possible. Categories
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