I am studying for CFA level 2 right now. I plan on giving the exam next year(2017).
I have already finished going through some of the topics. Not mastered them though.
I was wondering if i should attempt to do an FRM since i have ample time. Also i am not working currently. So i am just at home for now.
I did look at what an FRM has to offer and what direction it takes. I have seen that it doesnt have too much in common with CFA.
The reason I want to do it is to maybe add some more academic value on my Resume. I do not have any experience in finance yet. I plan on working after i finish level 2 CFA.
I want to know how much time it would take to prepare. And how much more intense it is compared to CFA level2.
Can someone comment on this? Or maybe share some kind of experience if they have had any similar kinds of experiences?
Time off to study for FRM or CFA exams is not recommended. The FRM and CFA exams do not compensate for time off from work, unless you’re pursuing a graduate degree during that year off from work. All else equal, guy/gal with 1.5 years of experience vs guy/gal with CFA level 2 passed or FRM exams passed, hire the 1.5 years of experience.
Also you’re in the Netherlands? This is quite possibly one of the worst times to take time off given all the bank layoffs. Getting a job in Europe at a financial intermediary or asset manager is gonna be really tough if you have no edge.
That said, if you’re really gonna be off, you might as well tack on the FRM if you can handle it. FRM Part 1 took about 125 hours of productive studying, but that was right after I passed CFA Level 2 so the stats was still pretty fresh in my head. The main topics that FRM Part 1 had new/different emphasis on than CFA levels 1+2 was various methods of calculating VaR (quant/qualitative), various GARCH models (quantitative), Black-Scholes (quantitative), enterprise risk management (qualitative), crises spurred on by risk management failures (qualitative). The stats should be relatively easy if you study CFA Level 2 statistics well – time series analysis, ANOVA, heteroskedasticity. I would recommend learning the statistics through the Schweser CFA books as the info is much more coherent and to the point than the chapter excerpts of the GARP books.
Taking Part 2 in November; thus far my read on the Part 2 curriculum is that it adds just a little bit on the quantitative side of things to Part 1; the bulk of it looks qualitative. Will have to see how this plays out.
Well thing is, I did a degree that i wasn’t satisfied with.
I spent a lot of money on it because it was in a foreign country. My goal was to settle down there after completing my degree. It was a 1 year degree. However, 2 months into the degree i realised that it was nothing like i hoped it would be and it would essentially lead me no where. I knew that if i came back home with just this degree, i’d be doomed. So, i kept an open mind and introspected and tried to understand what my strengths were. Then i came across the CFA programme. I took up the challenge and started studying for it alongside my worthless degree. Managed to clear it. While i studied for level 1, i realised what i had been missing out in life quite literally. I really enjoyed the material and was genuinely interested in it.
Fast forward 6 months and here i am studying for level 2. I am in no hurry to get a job. I want to do this right. I have spoken to a few industry professionals at fairly high positions. And all of them advised me to study for level 2 and then think of getting a job. Because i am a fresher in finance.
I also think you’re overestimating the value of the exams. I don’t think being a CFA or FRM charterholder alone will get you into the industry; it can help you move up in the industry if say you have a back-office job and want to move out of it a bit. And regardless of how many exams you pass, you’re still 4 years away from getting the CFA charter, and 2 from the FRM designation, if you have 0 years of relevant work experience. I would recommend flipping your mindset, you should be in no hurry to pass the CFA exams but in a hurry to get a job. A job pays for stuff inclcuding the CFA exams, CFA exams without a job pays for nothing.