CAIA or CFA without any financial background

CAIA
#1

Hi,

I am a scientist/medic. I have no financial background. I wanted to get into PE/VC. I thought the CFA or CAIA would be a god way to show on my CV I am serious about it.

I have not been to business school and have no formal finance/ecomnomix experience.

So what are your thoughts about it? Are the books for either basic enought to start from scratch or is there a lot of background reading needed? Which one would you start with?

Anyway thanks for your thoughts!

#2

the curriculum textbooks are detailed enough so that you can start from scratch. assuming you can do algebra and statistic based problems the quantitative stuff is straight forwards. you will struggle with some conceptual stuff but everything is in the book. if you pass level 1 that will be enough background for 2 and 3 but they are very difficult exams… people that work with financial statements everyday struggle with sections. unless you are exceptually brilliant, it will just take you more time to study and pass the exams.

#3

Thanks for the reply.

Are you referrinf to CAIA or CFA or both?

Which one would you suggest to start with?

Thanks

#4

CFA

#5

I would do both (I am in pursuit of my CFA at the moment), but since you don’t have any financial background I would start with the CAIA. The right amount of studying should ensure a pass and it is a good way of easing into alternative investments. I honestly don’t think a CFA is all that necessary for Private Equity but does look good when you go looking around to raise money.

#6

Thanks for your comment.

What study materials did you use for CAIA.? Is is just the level 1 book by Wiley? How long did it take you to prep and what background did you have?

Os the Maths tough in CAIA?

Cheers

#7

I have a BA in Economics, but a lot of the PE field deals with Medical Innovations so I am sure you can squeeze right in. I call these firms pretty much all day every day. For Level I, I used the required reading which I completed in 2 months, then I bought Schweser books pretty much for the Q-Bank, did that for 2 months, then just reviewed the last month. I spent about 5 months on Level I and a whole year (failed the first time) on Level II.

#8

any comment about the time you failed level 2? im taking it next month and just getting into taking the practice exams and questions

#9

So I’m a caia charter holder and a level 3 cfa candidate who started the cfa program without any background whatsoever. So I know what you’re up against. It will take quite a bit of work. The whole Cfa program is way more work then it’s worth assuming you don’t already have the job in finance to begin. Caia is 80 percent the same stuff but just way easier to pass and finish, two levels with exams head twice a year, with much higher pass rates. If you wanted to study and take cfa level one or caia level one there isn’t much harm in it. But please don’t be one of these people taking the exam thinking it will get you a job. It almost certainly won’t. HEdge funds and PE firms will hire you because your brilliant, have unique knowledge, and are already fairly well qualified. So make sure you are that guy first. Cause they won’t care if you are cfa level 2 if you’re just an average smo.

#10

I had no academic finance backgroud when I started. My undergrad was in communications. I’ve completed both levels of the FRM and levels 1 and 2 of CFA without failing any of them. Attempting 5 for 5 with CFA L3 next June. I’m now in the middle of a Masters of Finance program and considering CAIA L1 in September 2013. It’s doable if your intelligent and disciplined. If you’re not passionate about this industry you will fail…miserably.

#11

Be as detailed as you can when writing the essays. And know at least a little about everything. The essays did me in the first time. Take a practice exam (50 questions+) every day and score at least an 80. You should be ok. I used uppermark the second time which I felt was better than Schweser.

#12

You know, I did no practice exams. But, I did write a ton on the exam. I bet they are looking for reasons to give you points, unlike cfa level 3 where if the first thing you say isn’t the right thing you are screwed.

#13

I agree to a certain extent but I don’t think someone should blindly pursue degrees and designations for the sake of getting letters (although I have joked about doing so myself on other threads). I do think, however, that you can’t really go wrong getting the triple-crown.