CFA Level 1 Eligibility: Undergrads Can Now Start A Year Earlier
Last Update On 16th January 2025
Duration: 7 Mins Read
The Chartered Financial Analyst, or CFA, designation is considered one of the most prized qualifications in the finance sector. After achieving a CFA designation, career opportunities expand into areas like investment banking, portfolio management, and financial analysis.
In a rather praiseworthy move recently, the CFA Institute has eased eligibility requirements and also allows undergraduate students to sit for the CFA Level 1 a year before what had been the usual case. The revised change will not only speed up their journey but also enhance their capability to accumulate crucial financial skills before entering the workforce.
But what does it all mean to students? Or do you have questions like who can do CFA? Now, let’s dive in with more depth regarding the requirements to take the CFA exam, the CFA eligibility criteria, CFA qualification in general, and what early starts in this regard mean for undergrads.
What Is The CFA Exam?
One of the certifications widely recognised all over the world that a candidate can take is the CFA certification for getting certified in knowledge and skills in investment management, financial analysis, and portfolio management. The examination is divided into three levels: CFA Level 1, 2, and 3. Every next level becomes progressively more complex and specialized. Candidates who pass these examinations and get relevant work experience are awarded the CFA charter—a highly reputed qualification and extremely valuable for career growth in the finance sector.
Read more about the scope of CFA in our blog “CFA Scope and Job Opportunities in 2024: Top Recruiting Sectors”.
CFA Level 1 Eligibility Criteria in India
The recent rule change by the CFA Institute now allows undergraduate students to register for CFA Level 1 one year in advance. Candidates until recently had to be in their final year of undergraduate study to register for the CFA; with the introduction of new CFA level 1 eligibility criteria in India, this has been changed to specify that they must be within 23 months of graduating from their bachelor’s degree program. This provides a head start toward their professional journey and allows them to complete their CFA program much sooner.
If you are wondering who can do CFA? Then the revised eligibility criteria for CFA Level 1 are summarised below:
- You can register for CFA Level 1 if you’re in your final year or within 23 months of graduation.
- If you have a bachelor’s degree or equivalent work experience, you are eligible at any time.
Does CFA Require a Degree?
While a degree is not immediately necessary to have a go at the CFA Level 1 exam, the candidate must have completed their bachelor’s degree by the time they register for the CFA Level 2 exam. Alternatively, candidates can qualify with a combination of four years of professional work experience or higher education. In this way, more people, even professionals without a formal degree, can have access to the CFA program.
CFA Preparation: When Should You Start?
With the new CFA eligibility criteria, students can start early to ace the CFA level 1 course. This lets them ideally prepare 6-9 months before a sitting. The CFA Level I exam is a broad subject matter taken from ethical standards, financial reporting, economics, and quantitative methods down to portfolio management. It saves time for the candidates, and along with balancing the academic schedule, it also helps in management.
For undergraduate students, starting preparation early on in the first year of college provides enough time to read and learn without getting bound by the curricula of the academic sessions. Online courses, practice exams, and mock tests can make a significant difference in exam readiness.
Curious About CFA Preparation?
How Does Starting CFA Early Help
The ability to start early offers the following benefits to undergraduates pursuing the CFA designation:
Competitive Advantage: Early commencement puts students ahead of their peers and lets them enter the job market with a recognised qualification before graduation.
Deeper Learning: This allows the students to extend their knowledge of finance and investments by doing some academic coursework coupled with CFA exam preparation so that they could be better professionals.
Early Access to Job Opportunities: Many times, candidates who possess Level 1 under their belts attract internship opportunities and job offers in the finance sector a little earlier than the others, thus allowing them to take an early start toward building professional experience.
Time Management: The earlier the candidate starts, the more time he or she gets to spread out study sessions. In this way, the stress level is reduced, and one can pay due attention to the key concepts.
CFA Level 1 Subjects
CFA qualification requires you to take 3 levels of exams; the subjects for level 1 of the CFA exam are mentioned below:
1. Ethical and Professional Standards
This subject focuses on the importance of ethics in the finance industry. It covers the CFA Institute Code of Ethics and Standards of Professional Conduct, teaching how to act with responsibility and integrity in the profession.
2. Quantitative Methods
All financial analysis is quantitative in nature. This subject covers the time value of money, probability theory, and statistics—all necessary mathematical concepts for making investment decisions.
3. Economics
This captures the topics of both microeconomics and macroeconomics. It lays out the foundation for candidates to appreciate how economic forces affect the markets, industries, and general financial environment to make the best investment decisions.
4. Financial Statement and Analysis
You will learn to interpret and analyse financial statements, balance sheets, income statements, and cash flow statements. Understanding financial reporting is key to evaluating a company’s performance.
5. Corporate Issuers
Discusses corporate finance, capital budgeting, cost of capital, and dividend policies. It enables a student to appreciate just how a company can make capital decisions to create value for shareholders.
6. Equity Investments
Equity investments discuss equity markets, equity valuation techniques, and investment strategies. You will learn how to analyse stocks, appreciate characteristics of markets, and how to manage an equity portfolio well.
7. Fixed Income
This subject focuses on bonds and other fixed-income securities. It covers the valuation, interest rates, and risks concerning fixed-income investments to manage further portfolio diversification.
8. Derivatives
The derivatives section introduces options, futures, swaps, and forward contracts. You learn how these instruments are used for hedging risks or speculating on market movements.
9. Alternative Investments
Alternative investments include assets like real estate, commodities, and hedge funds. This topic helps in understanding the nature, benefits, and risks associated with various alternative asset classes when managing a portfolio.
10. Portfolio Management
The topic brings together all the above topics into a single basket. It includes topics on investment strategies, asset allocation, and management of portfolio risks, as well as how to establish and monitor an investment portfolio for a customer’s needs.
CFA Level 1: Exam Format & Weightage
| SR. NO | Subject Name | Exam Weight |
| 1 | Ethical and Professional Standards | 15-20% |
| 2 | Quantitative Methods | 6-9% |
| 3 | Economics | 6-9% |
| 4 | Financial Statements Analysis | 11-14% |
| 5 | Corporate Issuers | 6-9% |
| 6 | Portfolio Management | 8-12% |
| 7 | Equity Investments | 11-14% |
| 8 | Fixed Income | 11-14% |
| 9 | Derivatives | 5-8% |
| 10 | Alternative Investments | 7-10% |
CFA Exam Requirements
To enrol for the CFA Level 1 exam, candidates must meet the following requirements:
Your Country Should be Recognized by the CFA
Every candidate taking the examination must be living in a country recognised by the CFA Institute. Today, the CFA Institute has blocked some countries from sitting for the exam. It is, therefore, necessary to verify if your country is not blocked based on your location.
Travel Passport for International Travel
An international travel passport is required for verification of identification while registering for the examination. It should be noted that failure to possess a valid passport means a candidate is automatically disqualified from taking a CFA examination.
Commitment to Professionalism
Students are supposed to commit themselves to the Code of Ethics and Standards of Professional Conduct of the CFA Institute until the end of the program. It is one of the ways to ensure the best in terms of professionalism with integrity in the world of finance.
Proficiency in English
Since the CFA exam is conducted in English, candidates must be proficient in the language to understand and answer the questions effectively. All study materials and exams are administered in English.
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Why Did The CFA Institute Make This Amendment?
According to the CFA Institute’s press release, the CFA Level 1 eligibility criteria amendment will allow students to showcase their CFA Level 1 achievement as a solid indicator of their commitment to a future in the investing sector.
Significant research undertaken by the CFA Institute supports this new change. According to the findings, undergraduate students who are already engaged in academics and regular exams reported interest in signing up for the Chartered Financial Analyst program sooner. This was reported because students wanted to stay ahead of the curve in internships and job opportunities. The change is going to open more avenues for aspirants.
Conclusion
The CFA program, especially with its new eligibility rules, offers an incredible opportunity for undergraduates to start their finance careers early. With its global recognition and rigorous curriculum, an individual with the willingness to succeed in investment and financial management will find the CFA designation to be truly life-changing. Last but not least, if you are from either a finance or non-finance background, starting your CFA could be a ticket to success. Begin your success with Zell Education for expert guidance on eligibility, preparation, and much more today!
If you aspire to become a qualified CFA, explore the CFA course by Zell Education. With an all-encompassing curriculum, personalised study plans, and an 80% passing rate, Zell ensures that you embark on a bright professional journey.
Meanwhile, if you want to explore the benefits of the CFA Level 1 exam, read our blog Is CFA Course Worth it? Top 7 Benefits of doing a CFA.
FAQ’s on CFA Level 1 Eligibility
Who is eligible for CFA?
The revised CFA exam eligibility criteria are as follows:
- Students in the second year of their bachelor’s degree program.
- Students who have completed their bachelor’s degree.
- Students who do not fulfil the educational requirements but have 4000 hours of work experience.
Is CFA more challenging than CA?
Both the CFA and CA are difficult in their ways. CFA is more specialised in finance and investment, while CA covers broader topics, including taxation and auditing.
Can I combine CFA qualification with BCom?
Yes, you can do the CFA with your BCom. The new CFA eligibility criterion empowers undergrads to try CFA Level 1 during their college years, and this will make for a great combo in building up a career in finance.
Can the 12th pass apply for CFA Level 1?
No, you need to be at least in your final year of graduation or within 23 months from the date of graduation to be eligible to enrol in CFA Level 1.
Can I do a CFA without a degree?
CFA without a degree can only be done if you have 4000 hours of professional work experience in the relevant field.
Does CFA Level 1 require work experience?
No, there are no such work experience requirements needed for CFA Level 1; however, by the time you apply for the CFA charter after having passed all three levels, you will need work experience.
