Approaching CFA I

sokenyou

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I have an Engineering background with 7 years of experience in the field but not so much analytical work experience. I am trying to pursue CFA I to open up some doors for career switching opportunities, preferably getting into Equity research, IPOs, Portfolio management and possibly risk management. I have heard or given so many advices from different people and CFA seems to be the only way.

Anyone willing to advise on how to best tackle/approach CFA I as a candidate with no finance background nor analytical work experience?
Great big thanks.
 
First, the CFA is not the only way! While the CFA will help to broaden your knowledge in finance/investments, i have found from people’s experience that it is generally more useful to improve your position while in the industry than it is as a door opener. Additionally, I found from the little experience I’ve had that most people from your background will likely be more attractive in core quants/trading than traditional portfolio management or equity research.
But all that is just from my experience and what i think. Studying for the CFA is more of a time quest than it is a daunting brain work. In my experience studying for the first level, most subject areas are generally simple concepts that anyone from outside the industry could grasp easily.
The challenge is in the fact that the overall curriculum is quite enormous, and when you factor in the fact that every single learning outcome statement is a potential question for the exam, then you may understand why the fail rates are generally a bit high year on year.
So how best to tackle it? Start reading early. If you are planning to sit the exam in June, you should have started reading yesterday!…make sure you study using the learning outcome statements. I found that it is easier to lose track of important objectives of each topics with the barrage of meterials you are presented with. learning with the LOS makes you stay focus.
…plus you should also be ready to do away with socials and hang outs with best buddies.
 
what type of engineering? With that experience, you can try to transition that into a role that analyzes the field you worked in for these several years. CFA would be helpful then, since it would be a research role.
I wouldn’t say the CFA is the only road. A top MBA will probably open many more doors than passing these tests. ( it would take about the same amount of time - Or do both at the same time if you’re gung-ho enough )
 
Thanks for the advice….on study time, best way to tackle/approach this exam. My biggest fear is the ROI… if I invest 6 months to it and ends up having no job offers, then the ROI = 0 technically speaking.
 
sokenyou wrote:Thanks for the advice….on study time, best way to tackle/approach this exam. My biggest fear is the ROI… if I invest 6 months to it and ends up having no job offers, then the ROI = 0 technically speaking.
That’s not actually true. You have to view this from a probabilistic perspective. For instance, lets say passing the CFA L1 gives you a 50% chance of getting a job. Even if you don’t get a job, you still got the probabilistic payoff in the form of that 50% that was unfortunately not realized. The outcome does not necessarily determine whether a decision is good or bad.
I actually think you should get an MBA, btw.
 
It’s Mechanical Engineering. My work experience falls within maintenance of equipment… I have worked in manufacturing and government…. but not very analytical. I don’t know if the experience I have with the steel industry and government would leverage/get me into a research role.
I was thinking of getting a top MBA but I can only do part time and it will take 3-4 years. Again, what’s the expected ROI in this case with the MBA+CFA combination? It’s just hard to predict.
I don’t know if I am gung-ho enough but I know if I am not going to make the switch now or say attempt the CFA I next June, I won’t attempt it anymore in my life because of my age and other life priorities.
 
Equipment suppliers and distributors come to mind. or equipment maintenance services companies if companies like that even exist, totally outside my area of expertise, so I have no clue.
I wouldn’t think of it as ROI, because you’re talking about binary events. A pharmaceutical investing millions to make a drug, it could fail or it could make billions.
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Thanks for the advice and yes I guess I have a look at it from a porbabilistic perspective and not so much on the ROI and the outcome…. or what the outcome will lead me to at this time.
Should I take some CFA I classes or self-study would be sufficient? I was told a minimum of 250 hours are required for this thing and for non-finance background, maybe more …. like 350 hours.
I have been thinking of an MBA but part time is hard….. especially from a pretige/top-tier MBA school.
 
sokenyou wrote:Thanks for the advice and yes I guess I have a look at it from a porbabilistic perspective and not so much on the ROI and the outcome…. or what the outcome will lead me to at this time.
Should I take some CFA I classes or self-study would be sufficient? I was told a minimum of 250 hours are required for this thing and for non-finance background, maybe more …. like 350 hours.
I have been thinking of an MBA but part time is hard….. especially from a pretige/top-tier MBA school.
 
That’s true… it’s just that it’s a big committment and like the other person was saying….. forget about social life and etc…. and don’t look outside when it’s nice out there…
Is there any other use of passing the CFA I? Will I be better/more knowledgeable at investing because I will be more familiar with: Quantitative Methods, Economics, Financial Statement Analysis, Equity, Derivatives, corporate finance and Portfolio Management?
If it turns out that I can’t make the career switch… I wish to get something out of it that’s worth my while….
Thanks a lot.
 
After studying for Level 1 I can definitely read finance articles or blogs and understand a lot more of what’s being discussed than I could before. I’ve read other people mentioning the same thing, so it’s possible that you’ll have a better understanding of the finance world after studying, but it’s more of an overall general understanding, nothing too deep into a given area.
 
I am in a somewhat similar situation, biotech/life science background with about 5 years experience looking into ER focusing on those sectors. No finance background/classes whatsoever but will be taking CFA level 1 this June with hopes that I can use that to break in. Also hoping to take the GMAT soon afterwards and apply in January for the following year and hoping I can get into a decent MBA which will also open some doors.
 
TOB2020 wrote:I am in a somewhat similar situation, biotech/life science background with about 5 years experience looking into ER focusing on those sectors. No finance background/classes whatsoever but will be taking CFA level 1 this June with hopes that I can use that to break in. Also hoping to take the GMAT soon afterwards and apply in January for the following year and hoping I can get into a decent MBA which will also open some doors.
Thanks for sharing your story. I am planning to write the CFA I this June so I can get Level II next year and couple it with an MBA part time. The toughest part is to manage life/work/’THIS’ as I am planning to start a family sooner or later and it’s hard to afford a career switch. I will be 32 soon so I am on the edge of either do it take action NOW or forget it….. I need support and encouragement and hopefully I still have the energy to do it.
 
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