There is immense satisfaction that comes with completing CFA Level 1. This accomplishment is achieved through hard work, dedication and smart thinking. So, if you’ve cleared level one, congratulations!
There are many entry-level job opportunities available for you. However, while the first level can open several doors in the finance industry, it is not enough to climb the ladder. If you’re hoping for a higher-paying designation, better career growth and access to top financial companies, you need to begin the next step in your CFA journey.
Welcome to CFA Level 2 — the midpoint of the chartered financial analyst course.
It comes with a fierce reputation and is known to be tougher than Level 1. But while it is a challenging course, it is also very rewarding. Jobs for CFA Level 2 professionals are better than those who only clear the first level.
Those who start working immediately after Level 1 tend to return to the course to complete the next two levels at some point in their career. It makes good business sense.
This is important as Levels 2 and 3 offer a more in-depth education in finance and investment services.
Your knowledge and skillsets are built brick by brick in the CFA course. Level 1 lays a strong foundation. Level two aligns each brick perfectly with the next one. While Level 3 makes you a solid force to reckon with as a CFA-certified professional.
How different is Level 1 from Level 2?
|1||Portfolio Management and Wealth Planning||10 —15%||5 — 8%|
|2||Ethical and Professional Standards||10 — 15%||15 — 20%|
|3||Financial Statement Analysis||10 — 15%||13 — 17%|
|4||Equity Investments||10 — 15%||10 — 12%|
|5||Fixed Income||10 — 15%||10 — 12%|
|6||Quantitative Methods||5 — 10%||8 — 12%|
|7||Economics||5 — 10%||8 — 12%|
|8||Corporate Issuers||5 — 10%||8 — 12%|
|9||Derivatives||5 — 10%||5 — 8%|
|10||Alternative Investments||5 — 10%||5 — 8%|
While the subjects remain the same, the exam weightage varies from the first level. There is a shift in focus as the asset classes are tested more at this level. Level 1 gave a beginner’s introduction to all the subjects. In Level 2, the course goes deeper into equity, fixed income and financial statement analysis. While preparing for Level 2, you learn about the different types of valuations. In fact, all the subjects start to delve a bit deeper, covering more details and nuances.
At some point, it is advisable to finish Level 3 as well, as this will lead to better, more lucrative opportunities.
Also Read – 6 Important CFA Updates & Curriculum Changes
Benefits of clearing CFA Level 2
- Higher salary benefits, compared to Level 1.
- More detailed learning of relevant financial concepts.
- Some of the top retail banks, investment firms and other financial companies prefer candidates with CFA Level 2 certification.
- There are several jobs for CFA Level 2 professionals, such as portfolio manager, financial analyst and research analyst.
5 industry jobs for CFA level 2
1. Equity research analyst
The field of equity research offers many jobs for CFA Level 2 holders.
The role requires an analysis of market conditions and publicly traded companies that leads to insights and recommendations for investment opportunities.
- Research financial data about various industries, stocks and investment options.
- Create reports based on the research.
- Work in a team that conducts investment analysis.
- Investigate various investment opportunities.
- Make predictions about future prospects.
- Annual salaries range from Rs 2 to Rs 22 lakhs, depending on which firm hires you and where you are based.
- Companies such as JP Morgan, Goldman Sachs, Credit Suisse and Tata Consultancy Services hire equity research analysts.
Investment research analyst
Another job for CFA Level 2 professionals is to work with investment banks. As an investment research analyst, you will look for opportunities on the buy side or sell side.
- Advise clients about debt and equity.
- Offer recommendations about whether to buy or sell stocks.
- Create company profiles, reports, analysis and other financial documentation.
- Build financial models such as valuation models, M&A models and DCF valuation.
- Work with clients to understand their requirements.
- Professionals earn between Rs 2 to 20 lakhs a year. High-profile companies offer better salaries and perks.
- S&P Global, Citi, Deloitte and Morningstar are a few of the top companies that offer investment research jobs for CFA Level 2 candidates.
84% of our students recommend that you join us! Start Your CFA Level 2 Journey With Proschool
Risk analysts help companies lower the potential of risks and liabilities by examining financial data and studying the markets.
- Analyse and study the risk factors and advise clients accordingly.
- Create solutions to counter financial challenges.
- Read financial statements and budget reports.
- Make predictions about market trends.
- Risk analysis is a rewarding job for CFA Level 2 professionals as annual salaries range between Rs 2 to Rs 25 lakhs.
- The top companies such as JP Morgan, Ernst & Young, Citi and American Express offer better pay incentives.
Financial planning and analysis executive
An FP&A executive is an excellent job for CFA Level 2 professionals who hope to be a part of a company’s decision-making process.
- Offer relevant data and analysis that can help with strategic planning.
- Create periodic financial reports and presentations.
- Work in a team to assist with the budgeting, forecasting and planning of various activities within the company.
- Develop investment strategies that align with the company’s decisions
- Annual incomes start at Rs 3.5 lakhs and go up to Rs 19 lakhs.
- Some high-paying companies include Accenture, JP Morgan, ICICI, Oracle and Deloitte.
Junior portfolio manager
As one of the most prominent jobs for CFA Level 2 professionals, portfolio managers advise clients about the right investment decisions and help them with the buying or selling process for various assets. You can start out as a financial analyst or portfolio analyst.
- Work with a team of analysts and researchers to create strategic investment plans.
- Analyse various investment opportunities before deciding which options work best for the client.
- Keep track of the latest financial news to ensure the current investments are safe.
- Look for future opportunities in the market.
- Junior portfolio managers earn between Rs 7 to Rs 28 lakhs a year.
- Companies such as Capgemini, IBM, Tata consultancy services and ICICI Prudential offer portfolio management jobs for CFA Level 2 professionals.
About Proschool’s CFA level 2 course
One of the best coaching institutes in India, Proschool offers students a unique learning experience when they enroll for the CFA Level 2 course. The professors are experienced finance professionals who have spent considerable time in the industry. They teach students from a real-world perspective, ensuring they understand how the investment field really works.
Students are given the space to grasp the subject material and understand it on a deeper level. Proschool ensures that once you clear the course, you are more than ready to apply for jobs for CFA 2 professionals.
About the course:
- Proschool faculty uses active learning methods and offers hands-on training.
- Extra study resources, such as practice papers, mock exams and study prep books, are available.
- Students study over 10 case studies and receive more than 200 hours of curriculum teaching.
- The CFA course is taught at Proschool coaching centres in various cities, but you can also enrol online for virtual sessions.
- Students will also receive an NDSC certification with their CFA Level 2 credential.
- Proschool has an active placement program that helps students apply for jobs for CFA Level 2 candidates.
- You also receive recruitment training with mock interviews and resume writing techniques.
Is CFA Level 2 tougher than Level 1?
Yes, Level 2 is undoubtedly harder to crack than Level 1. The questions on the exam are complex and require more focus. You will need more training, preparation and practice for the Level 2 exam.
What are the toughest topics in CFA Level 2?
Most students find these subjects — portfolio management, financial statement analysis, and ethics and derivatives — to be the most challenging. However, with the right amount of study and prep, it is possible to do well in these areas.
How will Proschool help me pass Level 2?
Proschool has helped many students clear CFA Level 2 successfully. The curriculum is broken down into simpler concepts in easier-to-understand terms. The professors work with the students, offering mentorship and personalised attention. They also focus on case studies and practical application of the curriculum. The entire program is geared towards ensuring the students learn to the best of their abilities. At the end of the course, Proschool also ensures students have access to jobs for CFA Level 2 professionals.
CFA holders are considered an elite breed of finance professionals the world over. The credential is the gold standard in investment services, with nearly 200,000 charterholders across over 150 countries. It is probably one of the few finance certifications where students get recruited after each level. While CFA Level 3 offers the best career opportunities, students who want to take a break between levels can easily find jobs for CFA Level 2 candidates.