analaysis on mutual funds

The Chartered Financial Analyst designation is one of the most highly regarded titles in the financial industry. The first in a series of three exams is, at its best difficult and at its worst, nearly impossible. Only half of all candidates that take the level one CFA exam pass it to move on to the more difficult level two exam.

Instructions Concepts

1 Know the exam breakdown. There are 10 main topics: Ethical and Professional Standards, Quantitative Methods, Economics, Financial Statement Analysis, Equity, Debt and Alternative investments, Derivatives, corporate finance and Portfolio Management.

2 Get a copy of the CFA Candidate Body of Knowledge and study the Professional Standards of Practice and the Ethical Practices sections.

3 Study Quantitative Methods. Pay close attention to the following financial concepts: time value of money, statistics, random variables, probability, probability distributions, correlation analysis, linear regression, multivariate regression, time series analysis and basic portfolio concepts.

4 Brush up on your economics. Study the concepts of both macro and microeconomics as well as international trade, international finance and how economic activity relates to investments.

5 Understand Financial Statement Analysis. Know how to analyze inventories, assets, liabilities, taxes, investments, leases and balance sheets. Become familiar with financial reporting systems and principal financial statements as well.

Investments and Derivatives

6 Learn the analysis of equity and debt investments. Study the market indexes, equity risk terms and definitions, benchmarks, investment risk, debt investments, interest rates, yield spreads, debt investment valuation and credit analysis.

7 Have a grasp on derivatives. This includes the following markets: Forward, Futures, Options and Swaps.

8 Know about Alternative Investments. Study the following alternative investment concepts and markets: real estate, hedge funds, venture