CFA Level 2 Weights (Historical Topic Area Weightage 2017)

Checkout CFA Level 2 Weights for 2017-2018. Unlike Level 1, CFA Level 1 Topics Weights keeps fluctuation each exam. For Example, In CFA Level 1, the Topic Weight for Financial Reporting is 20%. However, for CFA Level 2, this Topic weight is between 15-20%. Another notable difference is that, the Weightage for ‘Equity Investments’ is just 10%, where as in CFA Level 2 its weight is around 20%.

CFA Level 2 is significantly harder than Level 1. I it also has the lowest pass rate for the three levels. Start early and plan to devote a significant amount of time to learning and practicing the material.

The good news is that once you pass Level 2, you’ll probably find Level 3 quite a bit easier and more fun. It focuses more on practical application of the underlying concepts and techniques from Level 2.

CFA Level 2 Weights

CFA Level 2 Topics Weights
Equity Weight 15-25%
FRA Weightage 15-20%
Ethics Weight 10-15%
Fixed Income Weight 10-20%
Quantitative Methods Weight 5-10%
Economics Weight 5-10%
Corporate Finance Weight 5-15%
Portfolios Weight 5-10%
Derivatives Weight 5-15%
Alternative Investments Weight 5-10%

Equity Investments : CFA Level 2 Weights

Equity Investments is one of the relevant topic in the current industry times. Few of the topics covered under CFA Level 2 Equity Investments Syllabus are:

  • Equity Valuation: Its Applications and Processes
  • Return Concepts for Equity Valuation
  • Industry Analysis With Porter’s 5 Force
  • Establishing a Framework for Successful Strategy Implementation
  • Industry and Company Analysis: The Basics
  • Free Cash Flow Valuation
  • Market-Based Valuation: Price and Enterprise Value Multiples
  • Residual Income Valuation
  • Private Company Valuation

Career Opportunities : CFA Level 2 Weights

While the CFA Curriculum contains material that would certainly come in handy in Investment Banking, and Corporate Finance roles, the vast majority of Charterholders that I have encountered either work in public market investments (long-only/mutual funds or hedge funds or sell-side equity research).

While a CFA Charter probably wouldn’t hurt a private market investor (investment banking/private equity), my sense is that having a CFA Charter is neither expected or particularly rewarded in those professions.

Even in positions that encourage pursuing a CFA Charter, my experience is that it’s more of a feather in one’s cap as opposed to something that will make you a shoe-in for any job.

At the end of the day, good investors are able to break down problems in efficient and systematic ways all in the context of dynamic markets.  Experience will always be the most important determinant of success.

The CFA curriculum isn’t complex, but it is vast. The challenge is to manage your time while studying and working. Passing the CFA while working (especially without support from your employer) demonstrates personal determination and commitment to finance.

The roles for which the CFA curriculum is most suited to are portfolio management, equity analysis, and credit analysis. It is also beneficial if you have a job in finance, but you studied different subjects in university. For some positions you are required to be a CFA charter holder, even if the CFA material is of little relevance to the job.

CFA would give you a good knowledge of the finance concepts. It is one of the best certification courses in Finance. The industry (specially KPO) values it a lot, since the genesis of the certification is US and a lot of KPOs have their roots in US.

However, I have found that to get the right job, you need to find the right opportunity. Unfortunately CFA Institute does not provide an “active job support”. If you go to their seminars, networking events, etc., you would be able to connect to the right people and get the right opportunities.

 Conclusion : CFA Level 2 Weights

This Analysis on CFA Level 2 Topic Weights was contributed by Prof.Wells. If you have any further questions on this or for feedback, post your message below in our comments section.