CFA Level 1 Changes - 2024: Unveiling the Updated Curriculum

CFA level 1 2024 lots of changes not so much in terms of content but the arrangement the shuffling Etc there is going to be a bit of a challenge but let's uh discuss the whole thing so that there is absolutely no problem and you're able to study very smoothly right so when you're looking at the 2024 curriculum first of all please do not get scared looking at the number of chapters that have increased for from 50 something to 93 it's not that way there are multiple chapters which have been broken down into smaller chapters so don't think of it that way second do not also get happy looking at the number of deleted losses so it is not that 52 of the syllabus has gone down there's a lot of reshuffling that has happened there is a lot of uh changes minor changes also that has happened and along with that there's some material that has been shifted to the prerequisite so basically let me summarize the whole thing for you so there are a few chapters that have been deleted there are a few chapters that have been added we will discuss Customs most of the chapters what has happened is they've split one chapter into four smaller chapters now when I'm doing that and when I'm defining you know how the syllabus is we have chapters we have subjects suppose we have quants now quants has got let's say a chapter called probability now the probability chapter has been deleted or changed and modified into two three chapters so we'll have to understand the modifications and all pretty well in order to move forward with our curriculum and with our studies so the chapters which were earlier than say for example there was one chapter which has now been split into three chapters for example economics currency so one chapter gets split into two parts so therefore the number of chapters have gone up also what has happened is some losses some chapters have been removed from the curriculum but you need to know the concepts of those for example we've got something in microeconomics we've got a few things in accounting a few things and quants and all so they have deleted those portion from the curriculum but you need to understand stand those Concepts in order to do those for do the other chapters in the exam for example if I remove let's say the basics of accounting let's say from the syllabus but you have assets and liabilities chapter in the syllabus so if you do not understand the basics of accounting how can you do the asset liability chapter yes earlier even on those basics of accounting or whatever I'm just taking an example on those chapters you could have had questions but now questions will not be asked on those chapters because they're not a part of the curriculum but to understand the further chapters in the curriculum you have to know those Concepts so actually we will not be able to say that 50 plus deletion is what we have seen in the syllabus that is not the reality yes this syllabus has been streamlined this syllabus has been trimmed quite a bit the basics which a lot of students had been covering in bachelor's courses and all that has been removed you need to know those Basics if you don't know those Basics obviously you'll have to study those as well and obviously we are going to take care of all the basics the lectures all the basics prerequisites Etc will be done it's just that you don't need to practice so much on it you need to be very very conceptually thorough because you will not be tested on the exam on those topics which have been removed but the basics of those will be required in order to understand the further chapters that we still have in the curriculum and as I told you one chapter divided into multiple smaller chapters so the flow of the chapter the shuffling the order in which it is done has changed and in a couple of places they've removed let's say you know let's say a formula of quants they've removed and the application of the formula from a finance perspective has been included so the curriculum is actually better in terms of you know aligning it with Finance uh that aspect so that aspect is good so don't think that deletion has uh uh you know your syllabus has become halved uh it has not become halved obviously it is not even increased just because you have more number of chapters here that is also not the case I would still say the syllabus has become relatively easier because there is a portion of chapters which you have to study know the concepts for your uh further chapters but you don't have to practice that as much because you will not be tested in the exam for that right so therefore I would say that the syllabus has uh you know become a little easier but it's good because your focus is on the very Finance Centric uh chapters and not on the basics so your focus is going to be a number of questions is going to be the same so except for getting questions on those basic chapters now we'll have the questions coming in from core chapters which is what your curriculum is supposed to be about so that way I don't see it's been very simplified as a level but I don't find difficulty level much changed as such it's just a little less practice you'll do over there and uh and questions will be more from the core areas so I think it's it's it's good and it's more aligned in terms of Finance so they're trying to from what I understand from what I see with the CFA Institute and the level one two and three the kind of changes they're coming up with the curriculum they're trying to align it more with with the Practical uh Finance space and how things are in the market uh so anyways let's let's move forward so first of all we have three chapters added over here so one is an introduction to financial statement modeling one is company analysis forecasting is very interesting so when you're looking at financial statement modeling we have a modeling chapter in level two as well also since you have the practical skills modules so financial statement modeling introduction works really well with that and we will discuss the Practical skill module separately uh right now I want to focus on the changes in the curriculum because practical skill module is anyway is not testable in the exam it has nothing to do with your exam we'll discuss that separately so company analysis forecasting is very interesting so they are trying to get into the business business model business strategy so that that business uh sense of it is coming in in a few chapters you know the forecasting of the past return future return we'll see those chapters and all so it's quite good that way so I'm liking the change over here and financial statement modeling as well and then you have introduction to digital assets so we've just put a added a part in your alternate Investments uh uh subjects wherein we're talking about Commodities real estate Etc investment formats we also want to talk about digital asset a very small portion added as such anyways you can see over here there are only three loances over here so not a problem as such so these are the three additions before I come to the changes because the entire curriculum looks like it has changed but it has not changed so much actually there's a lot of rewording that has been done there's a lot of shuffling that has been done there's a lot of uh maybe two uh losses or two subheadings have been combined into one smaller subheading so that kind of change is done by the core concept wise you will not see that you know more than 20 of the curriculum has changed not even 15 of the curriculum has changed as such The Core Concepts the basics are there it's just a reshuffling and all that has happened anyways so when I'm looking at the chapters that have been deleted so technical analysis has been deleted so when I'm looking at technical analysis chapter that is deleted so technical analysis you will learn when you talk about you know FRN syllabus lecture we've discussed uh fundamental analysis and technical analysis so technical analysis is not there those charts prices patterns anyways the CFA curriculum is very much uh in sync with fundamentals and not technical barely we had a couple of chapters around technical that has been removed there was a very lengthy chapter in economics around aggregate output prices and economic growth it was a little confusing from what I saw with the with the students but the moment they would practice with me they would not be a problem as such but still it was a relatively lengthy chapter which I'm I'm sure students are gonna be happy about it although I enjoy teaching this chapter application of financial statement analysis was a very very simple small easy chapter so if you see that has been deleted it was quite a small chapter as I told you the economics aggregate output was a lengthy chapter that has been deleted and measures of Leverage was a very simple chapter just a few formulas on corporate finance that has been deleted so these are the chapters that we are not going to be doing anymore not going to be studying anymore it is possible that some part of this chapter might be in the prerequisite path we will see that separately but right now let's let's move to the changes bit so you would see that the entire syllabus has changed I'm just magnifying it for you to be able to view it uh better so when I'm looking at rates of returns and time value of money in finance there is not much of change that has happened actually so in rates of return we have something called NP uh TWR mwror you may not be comfortable with the terms right now but I had already covered that in the portfolio chapter so as I told you that there is a lot of reshuffling that has happened some text or some Concepts they are now giving so earlier if I will tell you say for example rate of interest now I'll tell you calculate rate of interest from Equity perspective and fixed income perspective so the concepts are there it's just that it's more aligned with Finance as I Told You So once the books are out and uh we'll be able to see and we'll be able to understand a little better but that is how the changes have been done now statistical measures are still there there is not much of change over here when we're looking at the statistical measure bit but when I'm looking looking at let's say the probability part over here there's going to be a challenge actually it is not 29 losses that have been deleted actually what has happened is there were three chapters earlier we had a probability we had a common probability distributions we had sampling estimation now they've Consolidated as I told you that a bit of quants bit of Economics a little bit of uh this thing uh financial reporting analysis they've shifted it to prerequisite material so that is why you have seen these many deletions from three total chapters and some portion added over here they've changed the chapter names also and they've added some patent portfolio mathematics so I remember uh there was there there's a part of probability there are few formulas and probability that was a part of uh qualms but it is actually to be done with portfolio and now they've created a portfolio mathematics chapter and segregated that part so I would see that the syllabus the curriculum is getting more aligned in terms of finance and very core markets markets not stock markets as in economy markets Finance times everything so so that way it's good but the challenge is going to be that there is going to be a little bit of confusion I'll tell about I'll tell you about how to address the change in terms of your preparation those who've already been studying by 2022 or 23 books how do you address those changes we'll discuss at the end now simulation method was also earlier there we had Monte Carlo simulation and all but they've defined a proper chapter full-fledger chapter small chapter although over here so similarly when we're looking at estimation and inference that is there is a major change over here but there will be some parts of hypothesis or sampling estimation going in over here we'll discuss the chapter also in detail hypothesis testing is there but major deletion has happened over here from this chapter linear regression is same as before but again there is a little bit of uh one deletion and two changes over here big data basically we've gotten a fintech chapter that has been changed and modified into your big data techniques a lot of changes over here some overlap or some kind of inspiration I would see from level two because level two also we had data chapter so you can call it change or you can call it new chapter you can call simulation method new or you can call it changes I would call it changes because there's some overlap over here firm and Market structures Monopoly oligopoly Etc is already there in economics there's been some changes over there it's more about reshuffling I don't see the chapter to have actually changed so much there's more of reef shuffling and all that has gone about uh business cycle again there's a very minor change over here fiscal policy monetary policy was a single chapter earlier that has been split into two so fiscal being you know taxes Revenue the government side and monetary use your RBI Central Bank side geopolitics a little bit of changes although it was a newly introduced chapter but still and as I told you we had international trade some changes over here and the currency and exchange rate chapter has been split into two now so that is one change we are looking at then when you're looking at uh sorry uh the next set of chapters around when you're looking at the corporate finance part so organization organizational forms what is a partnership proprietorship Etc some changes over here once the curriculum is out again the change is a very minor I don't see the changes to be very very major it's more again as I told you reshuffling redoing the chapter in a way investors who are the investors Etc the stakeholders in a company working capital liquidity we had but some trimming of this chapter is also done Capital allocation was there structure was there over here I'm very interested in this business model chapter which was introduced it was quite good but they have kind of uh trimmed this chapter they've deleted just small part of it when we're looking at fra now so when I'm looking at the fra subject so uh if you see we'll have we still have your inventory uh we have your income statement balance sheet cash flow cash flow split into cash flow statement one and two actually we have your inventory long-term asset liability taxes all the chapters we have the analysis of financial reporting quality also over here it's just that in the beginning some chapter has been removed and some portion has been pushed into your prerequisite material also when you're looking at this financial analysis technique I do not like this change personally that's my opinion so the ratios and all that we study has been pushed over here earlier the ratio's chapter was actually after cash flow chapter but when I am going to teach you and when we are going to study you'll have to do the ratios before because the ratios will be included in inventory asset liability we'll be analyzing how the current asset ratio is changing or the debt Equity is changing for this asset or for Goodwill or for whatever so obviously you have to study the ratios before being able to analyze the ratios right so there will be some challenge in terms of I wouldn't say challenge but uh there could be chapters wherein I'll teach you three chapters together like when I'm teaching you alternate investment maybe I'll teach you all the eight chapters of alternate investment together you will still be able to demarcate okay there's a real estate part there's a commodity part but there could be some overlap so that that will have to work around I'm finding the equity part this company analysis past present future forecasting industry competitive analysis is very very interesting the way they are looking at you know understanding the business the strategy part so there's been some content they've taken from the previous uh portion and some content that has been deleted so a lot of redo as I told you a lot of refurbishing has happened it's not that the content is absolutely new and the topics and everything has changed totally and it is not even that uh the topic is absolutely a lot of lot of mix match and everything has been done Equity valuation is very very much the same barely one yellow is deleted uh when we're looking at the fixed income subject again fixed income cash flows so couple of chapters that are missed over here basically I'm not going serial order wise because I'm talking about the changes right now so 51 would be the same 53 would be the same those chapters are exactly the same I'll go through the topic list also don't worry now fixed income again we have some deletion and some changes in the theory chapters of fixed income a lot of splitting of fixed income has happened so please do not get scared for example as setback Securities three um valuation has been split into quite a few then your fixed income risk chapter has been split into this many creditors can some Theory chapters over here there's a lot of splitting of the chapters has happened so there were some Theory chapters that are still there with some changes some new addition barely new addition actually uh the fixed income valuation chapter has been split into five or six so there was one very lengthy chapter now you have split that into five six chapters the content is more or less the same when you're looking at the fixed income risk chapter duration convexity Etc they've broken it down into convexity and duration separately when we're looking at the creditors so credit risks is separate of government credit risk is separate corporate bond credit risk is separate when we're looking at the mortgage-backed security asset back Securities chapter we've split it into three so you've got securitization ABS MBS three chapters uh anyways we had looked at uh the derivative sub uh chapter was already split into six seven chapters last year itself so there is not much of a change over here just one loss and Alternate investment there are again some changes over here and it has been broken down so natural resources is one chapter so earlier alternate investment was one big chapter where you had private Equity hedge fund real estate commodity uh infrastructure real assets like Farmland Timberland now they have been split over here so you have one for head hedge fund one for Natural Resource One For Real Estate but these are small chapters so please don't get worried in terms that you know you'll have to study like eight new chapters or eight big chapters in fact the content has gone down so don't worry about it they've split the syllabus which are in two different chapters learning modules as we are calling it right now that is what has happened so there's a lot of uh shuffling and all so once you have the summary this is a summary of the changes once you see the summary we put all the readings over here so basically what we've done is when I'm looking at the subject ones these are the new chapter numbers that I now this chapter has got this changes and this it corresponds to chapter number one from 2023. this Statistics chapter corresponds to chapter number two from 2023 uh put probability corresponds to chapter number three from 2023 so this has only one change but I could not map it exactly over here because it's an absolutely new chapter introduced but there is some concept of an old chapter over here as I told you a lot of reorganizing the material has gone about it so uh it's it's highlighted the changes in this color you can see over here so changes in yellow new and uh orange and deleted in blue so that is how these these have been highlighted and the changes details are all provided over here so this is a chapter wise detail so there are a lot of chapters which have no changes absolutely portfolio risk return one two Etc so that is not a problem in fact what I'm going to be doing is I'm going to be giving you a list of chapters and list of topics uh that you can do absolutely without any problem without any issues right now right away and those chapters that you should be ignoring so I'll put together a list and I'll provide it to you basically these related chapters you need to ignore the chapters which are the same which is marked in white you can easily do it for everybody else and even where there are minor know changes like this don't bother you can easily complete these because the concept The Core Concepts are the same over here when you're looking at fixed income the core concept is same you cannot change duration convexity evaluation of a bond spot rate par rate Etc so that will not be so so much of a challenge but I'll give you uh send that as well and then what we have done is Los wise for every chapter if you want to see that this loss is corresponding to which particular loves from last year this LS is new basically uh so that's why I saw highlighted this way this LMS has got changes so this year's 1D is corresponding to last year's 1 M so this is how we map the entire Los so that uh you know for every chapter you're able to map and you can know that you know this LS or this subheading I can lean so this is broadly the changes you will be able to download this file so I'll provide the link over uh below for this uh second is difficulty level I've already told you volume wise syllabus has gone down the questions from in the exam are going to be more focused on the core areas because there is some content which is moved to prerequisite pre requisite will not be tested in the exam but the concepts have to be understood to attend the exam prerequisite also the lectures will be there it will be taken care of those students who are going to be looking at buying new books now my suggestion would be wait for the 2024 books to be out and then purchase it you can start studying right now because there are topics like portfolio risk rate on part one and two fixed income valuation and risk the entire derivatives the entire alternate Investments the entire ethics almost the entire quants so you are not I'm not referring to any book also some class notes are sufficient we're not referring to any books as well maximum it will happen out of let's say a 50 hour of lecture I'm just giving an example uh one one and a half hours may not be relevant but these topics you can absolutely easily complete uh Equity valuation so you can complete these topics absolutely easily and without referring to any books a book once the books are released for 2024 you can purchase them uh we'll also inform you once the books are out in everything in fact once the new books are out we also do a mapping of you know a page by Page we go through uh both the versions and we provide a mapping so that will not be a problem then we can decide for those who already have 2023 books please continue study whatever chapters are same I just read out I'll also give you a list of chapters that you can do easily at home without having any trouble so you complete those the concepts you use your 2023 books once or 24 books are out then I'll be able to tell you that you know uh ignore these chapters uh uh from your take a print out of this chapter or buy these chapters or whatever so we'll brief you once once the books are out and we'll tell you about that prerequisite in doubt if you need any study material as such Institute is anyways providing new content and the lectures will be sufficient so prerequisite I don't think you'll have to do anything beyond the lectures as such if there is needed once the books are out and once we have also you know gone into the depth of curriculum and everything I'll update you about that that will not be a problem with respect to the new chapters obviously the moments the moment the books are out the new chapters will be done in live class anybody and everybody who's in Kolkata is more than welcome to attend and once it has been Kolkata in the live class we will upload it on Google Drive all those things in the changes lecture I've already told you how we cover it's just that uh you'll have to be on your toes and you'll have to follow the instructions so I'll give you a list of chapters or list of lectures that you can do right now you complete those and then again uh by July and August or so the moment books are out in the moment uh we've seen everything and all and then you can go to uh the remaining portion also so we'll keep on Guiding you as to as to how to move forward about it and uh yeah I think that's that's about it so don't worry don't get confused don't worry follow instructions and uh follow that you know as I told you that complete the set of chap chapters right now focus on this complete this then think about the next step so that is how you'll have to go there will be a little bit of confusion here and there and for that uh don't worry this file and all will be taken care of and uh it will not be a problem it's just a matter of couple of months till the new 2024 books are out and we can actually see what exactly the changes are and all but uh till then the concept lectures as I told you the entire quants entire derivatives fixed income risk and valuation uh portfolio risk Return part one and two uh alternate Investments ethics you can complete these easily you don't need any book you don't need any reference you don't need anything at all you just complete these uh properly first and then we'll move to the next bit and by by the time everything will be ready by the time you complete these all right so don't worry don't uh get uh irritated the changes are good uh you don't have to study technical analysis you don't have to study the aggregate output chapter so be happy about it and study

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Length: 22min 34sec (1354 seconds)

Published: Thu May 18 2023