Overlap between MSc Finance and CFA level 1?
Hello everyone,
Apologies for adding to the seemingly bottomless pit of people asking if it "really takes 300 hours of study to pass CFA level one." My question is a little more specific.
I am currently finishing my first semester of a one year MSc Finance, and have an undergrad in Economics and Politics. I was planning on sitting CFA level one in December 2020, giving me six months to study after graduating, but I am also considering sitting the exam in June 2020 which is three weeks after my final college exams. The idea being that I may find post-college job searching easier if I can show employers that I have passed the first level, rather than telling them that I'm planning on sitting it.
For anyone who has done a MFin and CFA I am wondering to what extent the masters overlaps with the CFA content. Could I consider study for college to also count towards study for the CFA? Will a small amount of CFA prep over my last semester paired with three weeks of intense cramming before the exam prepare me enough to pass the CFA level one?
Thanks in advance guys.
The CFA exam is a little different than the topics you would learn in your MSc. I can’t imagine it would take you more than 100 hours to study for given your undergrad degree and masters. It’s an intro essentially. Some basic accounting , PM , econ, fixed income and equities. In terms of overlap, I presume there is a lot in theory. But, the way the exam is structured is unlike any undergrad exam.
Despite this, I would not neglect studying as it is not something you can instantly pass even with a masters in finance. You still need to practice the questions and learn a few new topics as the CFA is very practical . Whereas your MSc is likely far more theoretical.
You will need maximum 100 hours - and that’s being extremely conservative. I spent probably half that and did extremely well with just a finance degree.
Thanks for the replies, I suspected as much but was not sure if I was just being cocky. You have inspired confidence! I am going to meet with my thesis supervisor and, provided there are no big deadlines that I have overlooked, I will register for June 2020.
Definitely should be fine taking June 2020. The most difficult part with be the financial reporting section, given it is weighted 25% on level I and you don’t have the background. However, if you are interested in IB I would focus more time on networking and getting a job before graduation. People who have passed CFA level I come a dime a dozen. Very saturated candidate pool with that under their belt.
In all seriousness it depends what you want to do as a career.
If you want to work in IB/PE: CFA is totally useless and no one cares about it. It's a serious waste of your free time and happiness. I speak from first hand experience and my own buddy who has his charter told me no one cares in the PE world that you have a CFA. An MBA from a top school is much more useful since the IB/PE world is all about who you know first and how large your network is.
If you want to work in asset management be it at a traditional long only fund or at a HF then a CFA makes more sense because all the CFA talks about is how to properly invest a client's money and how to analyze a company thoroughly. A lot more people in the investment management side for public markets have a CFA and there is more of a push (kind of like peer pressure) for one to have it but it's not necessary. Imo the best investors don't need a "charter" to prove they know how to invest cash and make it grow from nothing (which is literally what finance seems to be... it's fu-gazzi... fug-azzi) It's more important to show that you know how to think critically and won't just follow market trends which if I can be frank is a load of BS since investment management is over glorified gambling at some points.
Also CFA Level 1 is not super impressive. Shit loads of resumes of undergrad students have CFA Level 1 candidate or Passed CFA Level 1. It's when you get to Level 3 that eyebrows start getting raised with interest but you won't get more than a "oh wow that's really hard. Wish you the best of luck on your exam." in your interviews even when you are at L3.
You make good points, but asset management is the area I have been hoping to get in to! Also, seems to me the more graduates that have the CFA level one means all the more reason for me to get it so that I can compete.
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