The Correlation Between CFA and Financial Modeling | Zell

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      How is CFA Related to Financial Modeling?

      Chartered Financial Analyst and Financial Modeling are two top trending courses in the field of finance. While there are some concepts that overlap between these two courses, they are quite different from each other. Financial Modelling is actually a stepping stone toward the CFA exam. Both these courses are offered by the CFA institute, the Chartered Financial Analyst course is a rather more detailed course that covers all aspects of finance and brings you multiple job roles based on your preference.

      Whereas FMVA known as the Financial Modeling and Valuation Analyst course is quite specific to financial planning and analysing. In simple terms, the FMVA course is a part of the extensive CFA course. If you are confused between the two courses and aren’t sure which one would be the right choice for you, we’re about to present to you a differentiation between the Chartered Financial Analyst course and the Financial Modeling course.

      What makes CFA and Financial Modeling different

      Chartered Financial Analysis is an advanced finance course that equips students with challenging financial concepts like mergers and acquisitions, investments, market analysis, valuation, cash flows etc. However, to apply these concepts in the best way possible you’ll require some financial modelling skills. Now coming to what financial modelling is or what FMVA does, Financial modeling is a role that requires you to prepare a detailed financial plan that includes –

      • Study the financial status of the organisation
      • Find out the long-term goals of the company
      • Charting out business opportunities
      • Bringing in ways to increase profits and reduce costs

      These financial skills are equally important for a CFA who wants to achieve the company’s financial targets seamlessly. That’s why Financial Modelling is considered as the stepping stone to becoming a successful CFA. And by this stepping we don’t mean that you need to have a financial modelling degree necessarily, but rather the practical skills that will help ace professional challenges in a better way.

      A quick comparison between CFA and Financial Modelling syllabus

      CFA Syllabus

      The CFA Program syllabus comprises the following 10 topics that are further split into their corresponding sub-topics as mentioned below:

      CFA Syllabus Level 1 

      Weightage

      Ethical and Professional Standards 15-20%
      Quantitative Methods  8-12% 
      Economics  8-12%
      Financial Statement Analysis 13-17%
      Corporate Finance  8-12%
      Equity Investments  10-12%
      Fixed Income  10-12%
      Derivatives  5-8%
      Alternative Investments 5-8%
      Portfolio Management and Wealth Planning  ii

       

      CFA Syllabus Level 2 

      Weightage

      Fixed Income 10-15%
      Derivatives 5-10%
      Alternative Investments 5-10%
      Portfolio Management and Wealth Planning  10-15%
      Ethical and Professional Standards  10-15%
      Quantitative Methods  5-10%
      Economics 5-10%
      Financial Statement Analysis 10-15%
      Corporate Finance 5-10%
      Equity Investments 10-15%

       

      CFA Syllabus Level 3 

      Weightage

      Ethical and Professional Standards  10-15%
      Quantitative Methods 0%
      Economics 5-10%
      Financial Statement Analysis 0%
      Corporate Finance  0%
      Equity Investments 10-15%
      Derivatives 5-10%
      Alternative Investments 5-10%
      Fixed Income 15-20%
      Portfolio Management and Wealth Planning  35-40%

      FMVA Syllabus

      A bachelor’s degree in Financial Modelling could take around 3 to 4 years whereas a diploma course will take around 1 to 2 years. Here are some of the major concepts you’ll be learning on if you compliment your CFA degree with a Financial Modeling course.

      financial modelling syllabus

      We hope that with this comparison between CFA and Financial Modeling you can identify your journey towards becoming a successful Financial Analyst in a better way. To know more about the ways to enter into field finance, click on the WhatsApp button on this blog and get in touch with our experts directly.

      FAQ

      Is Financial Modeling the same as Financial Analyst?
      Financial Modeling and the Chartered Financial Analyst course are quite different from each other. Financial Modelling deals with the financial planning side of the organisation, while Financial Analyst deals with everything that comes after that. Right from creating the right investment strategies to analysing risk factors.

      Is CFA good for Financial Analyst?
      Yes, the Chartered Financial Analyst course is the most effective way to become a Financial Analyst. This course equips students with challenging financial concepts like mergers and acquisitions, investments, market analysis, valuation, cash flows etc.

      Can a CFA become an Investment Banker?
      The CFA course enables students to learn all about the markets and the best investments that one can make to increase their revenue. The skills you gain with a CFA course can enable you to become an Investment Banker.

      Is FMVA better than CFA?
      FMVA is the stepping stone to CFA. The financial planning skills you gain in the FMVA course can prove to be quite helpful for you as a CFA professional.

       

      Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.

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