The objective of the Accredited Financial
Analyst® Program is to equip candidates with both basic and advanced
skills required by a Financial Analyst in performing his tasks and duties as a
Financial Analyst, Research Analyst and Investment Banker.
AFA® Programme is
continuously updated by practitioners to ensure that what you learn remains relevant
in today's finance industry.
The AFA Education Program focuses on
sharpening three components:
(a) Knowledge: The students get the latest updates and
learn about the opportunities in Financial Analysis Globally. They appreciate
the market dynamics influencing Financial Analysis and gain an overview on the
latest innovations in techniques of Analysis and Research they also gain an
insight into global best practices in this field.
(b) Skills: Students develop
skills in analysing financial products and investments and creating research
reports for clients, ability to present research reports and investment
strategies confidently through customer friendly language .Create and/or
increase their capability to think strategically by using a structured process.
(c) Application: The program through its rigors and practical orientation prepares the students
to apply the concepts and skills developed in the program in actual work
environment. The outcome of this applied education is a complete” FINANCIAL
ANALYST” who is ready for the rigors of the Financial Services Industry.
equips the candidates with skills and knowledge required to analyse complex
financial products, investments and situations to guide sophisticated clients
through their financial investments and decisions.
The Program helps in:
a. Acquiring core understandings in
and across the disciplines that contribute to the domain of Financial Analysis
and Research including Financial Statement Analysis, Corporate Finance,
Financial Modelling and Financial Report Writing.
b. Relating these conceptual
frameworks to dimensions of practical areas on the ground.
c. Providing candidates with
opportunities to encounter and critically engage with instances of both
challenging problems and attempted interventions by a Financial Analyst.
d. Engage with the complex
financial markets, financial instruments, financial models, human attitudes and
e. Explore the ethical and personal
dimensions of Financial Analysis and understand the ethical responsibilities of
a Financial Analyst.
The Curriculum of AFA® Consist of
Level 1: Foundation Level Consisting of 5 Units.
Level 2: Advanced Level Consisting of 5 Units.
The candidate goes through the above 10 Units
through either through Class Room Mode or Distance Learning Mode and clear the
requisite exams to complete the academic requirements of the Board of Standards.
The completion of the academic criterion ensures that the candidate has the
requisite knowledge and skills to work as a Financial Analyst.
Name of the Unit
Introduction to Financial Markets
Quantitative Techniques and Methods
Financial Statement Analysis
Fixed Income Security Analysis
Name of the Unit
Derivatives and Alternate Investments
Portfolio Management Strategies
Advanced Financial Analysis
LEVEL I — Foundation Level
Unit I – Introduction to Financial Markets
a professional like a Financial Analyst an understanding of financial markets
and systems is of prime importance. This unit would enable the Financial Analyst
professional get a basic understanding of the Global Financial System. This unit
would also cover the fundamental aspects of financial markets operating across
the globe. The unit would enable the investment professional in acquainting with
the history and origination of the International Financial Markets, Global
Financial Institutions, regulatory institutions, Monetary and Economic System.
The objective of the unit is to enable a financial analyst to understand the
changes in economic environment on the financial markets and instruments.
Unit II – Quantitative Techniques and Methods
unit would focus on making a financial analyst understand the concepts of
financial mathematics of return measurement. The unit would look into the
different statistical concepts like CV, probability, hypothesis testing, etc.
which would act as a stepping stone towards the high end financial analysis The
overall aim of the unit is to provide a hands on experience on the calculation
of some of the basic but important measures of analysis.
Unit III – Financial Statement Analysis
Superior analysts are those who have a strong hold to understand the numbers and
figures provided in an entity’s accounts. This unit would serve this objective
to the fullest. The unit aims at analysing and assessing the financial quantum
of data provided by the corporates in a manner which would lead him to a right
investment decision making process. The unit would cover income statements, B/S,
Cash Flows and other important accounts which gives an insight to the financial
strength of the company.
Unit IV – Corporate Finance
This unit would be the first part of the conceptual knowledge with regard to the
area of corporate finance. This unit endeavours to make an analyst understand
the importance of long term financing decision like capital budgeting on the
financial profitability of an entity. This unit would also strive to cover the
corporate governance issues of listed entities in India which are of utmost
importance for an analyst to understand in the current context.
Unit V – Fixed Income Security Analysis
objective of this course is to provide an overview of the fixed income
securities and their analyses. Because of the complex nature of the fixed income
securities, this course places an extra emphasis on the understanding of the
economic forces driving the fixed income securities markets and the techniques
for analyzing the securities. The types of fixed income securities covered in
the course include treasury securities and municipal bonds, corporate and
international bonds, and structured securities. The risk-return characteristics
of these fixed income securities will be explained in terms of price-yield
relationship, various yield and return measures, and various price volatility
measures. Various techniques for the valuation of these fixed income securities
will be illustrated in detail. The topics on fixed-income portfolio management
include: yield curve and yield spread strategies, indexing and cash flow
matching strategies, immunization strategies, and techniques for bond
performance measurement and evaluation.
LEVEL II — ADVANCED LEVEL
Unit VI – Equity Analysis
Equity as an asset class always features as the first choice in almost every
portfolio due to various reasons. Considering the importance Equity possesses in
investment management space this unit would focus at enabling the Financial
Analyst understand the various aspects of Equity. The unit would help them in
analyzing the equity and its related products in a much comprehensive way. The
unit would enhance the knowledge of the financial analyst regarding this premier
asset class so that it would help him to extensively analyse equity as an asset
Unit VII – Derivative and Alternate Investment
This course aims at explaining and discussing the importance of alternative
assets in a client’s portfolio. As the market for Alternatives is still naïve in
India we would try to focus on how inclusion of alternate assets has affected
the risk and return composition of global clients. The unit would also focus on
studying the various alternate channels of investment and their applicability in
Unit VIII – Portfolio Management Strategies
unit would serve as a foundation for understanding of Portfolio Management
process of an individual. This unit would cover the fundamental concepts of risk
and return and their application in the context of overall portfolio of a client
which would help the wealth manager in making efficient asset allocation with
respect to client’s risk and return objectives. This endeavour of the unit would
be to guide the investment professional in drafting the Investment Policy
Statement which is one of the most important tool of investment advisory arena.
The latter part of the book would feature the various portfolio managing
strategies both for Equity as well as Debt.
Unit IX – Behavioural Finance
This unit is focused on behavioural and psychological factors which influences
the investment decision making of a client. This unit would further exemplify
how the client behaviour changes to different situations prevailing in the
financial markets which would help a wealth manager in evaluating how to handle
and manage the client’s responses. The unit would also include case studies
covering the behavioural biases shown by the clients and how an analyst can
approach and mitigate the same.
Unit X – Advanced Financial Analysis
This Unit will advance your understanding of how to use financial information to
value and analyse firms. We will apply your economics/accounting/finance skills
to problems from today's business news to help us understand what is contained
in financial reports, why firms report certain information, and how to be a
sophisticated user of this information.
unit would act as the crux of the concepts and tenets covered in the entire AFA.
This unit would be a practical application of financial research with the help
of one or the other model on MS Excel. This would cover some of the most
important tools and formulas with regard to different areas of financial
research like risk and return analysis, financial statement analysis, etc. The
unit will also cover the Report Writing and analysis techniques used by a