That being said, the CFA charter is truly an all-encompassing designation that focuses more on portfolio management at its highest level. However, for individuals looking to achieve a more expert-level grasp on the area of alternative investments, the CAIA should be considered, either as a stand-alone designation or to augment one's CFA charter. This section covers the basics of the alternative investment space. It includes understanding the complexities of alternative asset classes, quantitative techniques, and the unique aspects of alternative investments.
- Generally speaking, the CFA covers a broader range of financial topics and has a larger membership base.
- The quality of the tutoring you receive may depend on the individual, so make sure you verify their independent credentials before signing up for sessions.
- The Level I CAIA exam tests your understanding of the tools used to analyze alternative investments.
- What happens if a candidate loses connection with an exam during OnVUE delivery?
- Once your connection is reestablished and if necessary, the application restarted, you will resume your exam from the question or moment you left.
Sections 1 and 2 each consist of 100 multiple-choice questions, which measure candidates’ knowledge of the CAIA Level I curriculum. Of the two, the CFA is seen as the more difficult designation to get, as the exams cover more content and have historically had lower pass rates than the CAIA exams. Overall, the CFA is seen as an excellent general designation for the financial industry, but the CAIA can be a difference-maker in niche areas of finance like private equity or hedge funds. Similar to earning the Chartered Financial Analyst (CFA) designation, possessing the CAIA designation provides individuals with access to jobs, member chapters and sources of education. The CFA includes content on alternative investments, but the CAIA dives much deeper into the topic and the valuation methods specific to each. In short, CAIA is highly specialized and has a stronger focus on alternative investments, whereas the CFA designation covers a broader scope of financial analysis, portfolio management and investment topics.
Despite the equal time allocation per section, the multiple-choice section forms majority (70%) of the Level 2 exam weight, and the essay-type questions only 30%. The demand for alternative investment managers is likely to continue to rise in the foreseeable future. Check out our CAIA exam prep study packages for all learning styles now. It’s important to note that Varsity Tutors is the only company in our review that isn’t included on the CAIA Association’s list of recommended preparation providers. The quality of the tutoring you receive may depend on the individual, so make sure you verify their independent credentials before signing up for sessions.
The second exam consists of 100 multiple-choice questions and three sets of essay questions. It is split into two 2-hour sections with a small break in between. The multiple-choice section is worth 70% of the exam, while the essay section is worth only 30%. The fees have been revised for the 2023 exams, featuring reduced fees for early registration and increased standard registration and retake fees (effective from September 2023 onwards).
If this happens, a proctor will ask you to stop reading the questions aloud. Even when the testing computer is locked down during an exam, you may still use CTRL+ and CTRL- to magnify content up to 200%. If you receive a text or other notification, ignore it and continue testing. If you wish to silence your phone, alert the proctor so they know you are accessing your phone only to silence notifications. If your phone rings during the exam, limit your interaction to identifying the caller. To do so, you may reach for your phone, but you must stay within the webcam view.
Each package is extremely customizable, with the ability to remove products you don’t need and even opt out of live classes for topics you’re already comfortable with. UpperMark’s proprietary software that generates customizable mock exams isn’t the only reason we picked the company for best study materials. Packages also include a wide selection of handbooks, flashcards, formula sheets, and more. The CAIA Association publishes a list of recommended third-party preparation providers. CAIA exam prep courses can cost anywhere from close to $500 to more than $1,100, so it’s important to choose carefully. We took a close look at all the options available and identified the best courses based on curriculum, materials, instruction, pricing, and more.
We are pleased to offer a CAIA Level I and Level II exam discount to Members of many of our association partners. Find out if you are eligible to take advantage of a discount here or learn more about access to supplemental knowledge and resources through CAIA-sponsored industry events. Please review your program’s processes to learn when and where you can access your score report. A. Because scratch paper or note boards are not allowed when taking an OnVUE exam, some exam programs allow you to use a built-in digital whiteboard to do scratch work or take notes (Opens in new window). You cannot allow anyone else—including children, roommates, colleagues, etc.—to enter or even pass through your testing space once you’ve started your exam. A. Click the View ID requirements button on this page to make sure you have the proper ID for online-proctored testing.
What is the median CAIA® Charterholder salary?
Only a handful of tutors with CAIA curriculum knowledge are available through Varsity Tutors. Unfortunately, UpperMark doesn’t offer any type of trial period for its course and won’t refund fees once they’ve been paid. The company’s pass guarantee is also much less generous than other preparation providers. If you fail on the first try, you’ll only receive a 40% discount on your next UpperMark study package.
Chartered Alternative Investment Analyst
For those who work in, or have aspirations of one day working in the world of finance, chances are you're familiar with the Chartered Financial Analyst (CFA) designation already. It has arguably become the most recognizable and sought after professional designation in the industry. Through the next steps in gaining knowledge, expertise, and clear-career advantage as a CAIA Charterholder. Whether you are just starting your CAIA Charter journey or are working toward its completion, earning the CAIA designation puts you in a professional network that is shaping the future of investing. The cost of enrollment is $400, and Level I and Level II exam registration is $1,250 for each exam.
On test day
Other topics include the implications of appraisal-based pricing of real estate and private equity for asset allocation and risk management. Investments in areas such as intellectual property, insurance-linked securities, and equity-linked structured products are also covered. Meanwhile, as investment and interest in alternative assets continues to grow in the financial community, individuals with advanced expertise in this area caia exam are in ever-increasing demand. Alternative assets can be considered as investments and asset classes that do not fall under the general umbrella of equity or fixed income. Since the CAIA covers investments that aren't equities or bonds, the title could be considered superfluous for most financial professionals. However, the CAIA does have two specific and lucrative homes, namely private equity and hedge funds.
How to Become a CAIA Charter?
Most career investment professionals would benefit from a CFA title next to their names. However, financial advisors and brokers can survive without it, as can certain analysts. It can be challenging for finance professionals to keep up with the alphabet soup of potential professional titles. That is especially true when many programs seem to cover much of the same information.
The other two feature live weekly classes and access to instructors, who can answer questions at any time. To choose the best CAIA exam prep courses, we first reviewed the program curriculum covered by each provider, making sure it met CAIA Association standards. Next, we examined the different formats of study materials provided, including textbooks, notes, flashcards, and practice exams. We also looked at options for live classes and ease of access to instructors.
Once certified, there are annual membership dues of $350 for one year or $650 for two years, and a self-evaluation tool to be completed every three years to maintain the designation. Early registrants and members of certain partner organizations may qualify for scholarships or discounts to help defray the cost of enrollment and sitting for the Level I and Level II exams. The exams are administered in March and September, and the Chartered Alternative Investment Analyst Association recommends at least 200 hours of study. Candidates have the option of booking their exam date in a 10 business day window during the exam periods. All exams are administered internationally in computerized format exclusively at proctored Pearson VUE test centers. Formal CAIA exam prep courses are helpful, but they don’t always provide the level of individualized attention you need to pass an incredibly difficult test.
As a reminder, mobile devices must be kept out of arm’s reach during the testing sessions. Therefore, candidates are expected to learn the material on their own. Once the program and eligibility requirements have been met, CAIA Members are able to join Chapters. Chapter activities include educational panels with expert speakers and deliver on CAIA's mission to educate Candidates and Members about relevant topics in alternatives. This topic covers all things credit, especially collateralized debt obligations (CDOs). In this section, candidates are expected to understand the basis behind CDO valuation and the different underlying assets a CDO can be based on, such as distressed debt and arbitrage CDOs.
The exam is challenging, with the CAIA Association recommending that a candidate study for 200 hours. This has just been an overview of the CAIA program and what individuals new to the designation can expect from it. For more information, visit the CAIA website to get a complete breakdown of the program and the CAIA Association itself. Both the Level I & II exams are offered twice a year, in late February/March and September, and students have the option of booking their exam within a window of a few weeks before the exam periods start.
CAIA Association reports that the average Level II candidate studies for at least 200 hours. It’s important that you do your studying over a period of several months, and that is why registration opens five months https://1investing.in/ before the exam window opens. The topics you’re being tested on require a type of knowledge that can only be gained over a structured, careful course of study—not last-minute, frantic reviews of core materials.
The CAIA Charter curriculum consists of two exam levels and is revised regularly to incorporate relevant, practical industry developments, and the latest academic research. A. In general, all personal belongings must remain out of arm’s reach during your exam. However, if your exam program allows personal belongings or testing tools like calculators during an exam, you will find that information in the program-specific policies section of this page. Any delay might mean there’s a problem with your photos or internet connection. For issues with your photos, a proctor will attempt to reach you over chat or via your cell phone.