Chartered Alternative Investment Analyst - CAIA® Exam Guide

Are you considering pursuing CAIA? Here are the reasons why the CAIA exam could be one if you are keen on learning Alternative Investments.

• The CAIA Association has been an independent and non-profit organization committed to training and acquiring professionals in alternative investments since 2002.
• The Chartered Alternative Investment Analyst in the CAIA program is an extremely deep level of knowledge and demonstrated expertise in alternative investments. This course is recognized globally as the best in its class.
• Risk managers, analysts, portfolio managers, traders, consultants, etc., can benefit from this program and become members of the CAIA Association.
• This program gives you relevant industry knowledge as the course material is updated regularly.
• This degree adheres to alternative investments' professional and ethical standards and has more than 11,000 members across 100 countries.

The CAIA Association has gathered many members quickly for alternative investments. With the help of a two-tire examination, you can become a member of this association. The expertise demonstrated by alternative global credibility adds value to your profile and knowledge. A few notes given below can help you make your decision.

The post covers the following;

1. About CAIA® Exam
2. CAIA Program Completion Criteria
3. Why Pursue the CAIA Program?
4. CAIA Exam Format
5. CAIA Exam Weight
6. CAIA Fee Structure
7. Pass Percentage for CAIA Exam
8. CAIA Exam Strategy

If you aspire to work in the finance industry, CFA® Chartered Alternative Investment Analyst (CAIA) is an option you can consider. The alternative investment industry deals in the asset class and other investment options besides just the fixed income and the equity products. It includes private equities, hedge funds, real estate, structured products, and commodities.

• Role: Risk managers, Analyst, Portfolio Managers, Traders, Consultants, etc
• Exams: CAIA program has a process of two-tier examination, which can complete in a year. Both the examinations are offered in March and September.
• CAIA exam dates: Both level exams are held in March and September and are announced online for these online examinations.
• Eligibility: To be eligible to appear for this examination, the candidate needs to have a minimum of a bachelor's degree or relevant professional experience of a year. Or four years of experience in alternate investment analysis or other regulatory areas such as banking, finance, and other related fields.

CFA® CAIA is divided into two levels; to become a part of the CAIA association, you need to get through both these levels.

• Level I consists of 200 multiple-choice questions. It covers Professional Standards and Ethics, Introduction to Alternative Investments, Real Assets, Hedge Funds, Commodities, Private Equity, Structured Products, Risk Management and Portfolio Management.
• Level II consists of 100 multiple choice questions and three sets of essay-type questions that are also known as constructed response questions. This part is divided into two parts. The 1^st one is the main topic, the alternative investments, and the 2^nd one is core and integrated topics. To have a deeper and better understanding of level II, the candidate must apply knowledge from the level I examination.
• Level II covers Professional Standards and Ethics, Private Equity, Real Assets, Commodities, Hedge Funds, Managed Futures Strategy, Structured Products, Asset Allocation and Portfolio Management, Risk, and Risk Management, Manager Selection, Due Diligence, and Regulation.
• Devote 200 and more hours of studies to clear this course to understand better.
• The candidate needs more than 70% marks to clear both levels I and II of the CAIA examination. For 70% is set as the initial benchmark for clearing the level by the examiners.

If you like alternative investments (investments except for the common equity and fixed income investments), then this is the course for you. Let’s see a few reasons why you should pursue the CAIA program.

• CAIA provides deep knowledge and displayed expertise and credibility in alternative investments by professionals recognized globally as best in class.
• Within a year after completing two levels of examinations, you can be a member of the CAIA Association.
• To update the students regularly, the curriculum is updated regularly.
• It is a complete self-study program with curriculum books, study guides, and preparation material created by the CAIA association alone. The course material is revised regularly based on the changes and developments in the industry, along with the latest academic research. These books and the study material are available to be purchased online.
• Suppose you believe in alternative investments, and you know you can ethically guide your customers through successful investment planning. In that case, you must pursue the CFA® CAIA program to add value to your career and make the most of this course.
• Go through the syllabus and the course structures you will understand that both levels include ethical and professional conduct lessons.

• At the  I examination level, the candidate is assumed to have an elementary and undergraduate understanding of basic quantitative analysis and traditional finance concepts.
• It focuses on Professional Standards and Ethics, Introduction to Alternative Investments, Real Assets, Hedge Funds, Commodities, Private Equity, Structured Products, Risk Management, and Portfolio Management.
• This examination is an online examination; however, the results are not declared immediately. They are declared three weeks after the final examination date of the term.
• The examiners have their initial benchmark set as 70% for this level examination of 4 hours.

This part is divided into two sections: the 1^st one is the alternative investments, and the second is the core and integrated topic. The candidate is expected to apply the skill and the knowledge he has gained for the level I course.

• It focuses on Professional Standards and Ethics, Private Equity, Real Assets, Commodities, Hedge Funds, Managed Futures, Structured Products, Asset Allocation and Portfolio Management, Risk and Risk Management, Manager Selection, Due Diligence, and Regulation.
• An online examination with 70% sets the initial benchmark the candidate needs to score. This level examination is divided into two parts: 1st 2hrs for 100 multiple choice questions and the 2^nd one for the constructed response. The results are expected three weeks after the last date of the exam is over for the term.

CAIA® Level I

CAIA® Level II

CAIA fee structure is extremely simple, and we have got the information for you below. The table is self-explanatory.

CAIA can be completed in one year if you work around it correctly. The CFA® CAIA course has a more than 40% passing rate at the 1^st attempt, which means you stand a high chance of becoming a member of CAIA within a year. But, as we said, you need to do it right. A few tips given below can help you achieve your aim.

1. To start with, know what you are doing. Take up a course if it is worth it because the course fee and its examination fee are quite high. Choose it only if you feel this course suits your requirement and will add value to your profile.
2. Now that you are sure about the course being apt for you to know the curriculum and the course's topics before you start. Knowing the course material well will help you plan further.
3. Because this is a self-study program, you will have no guidance except for a study guide available for you online. Get this guide for your reference and study as per the guide.
4. Study only from the material provided online. The study material is edited and updated regularly as per the latest industry trends and market changes to get the latest industry updates to the candidates. You can download and buy the material online as it is available on the website of CAIA.
5. What is the examiner’s expectation, which means what the examiner expects from you and your answers? Again, it is extremely important to understand the examiner’s point of view before you start studying.
6. It is said that you must understand and not memorize what you study. Memorizing does not give you the knack for analyzing and thinking. Understanding helps you dig into the matter better. To understand the material instead of memorizing it.
7. Of course, revision is very important. As kids, we always revised whatever we learned throughout the year. However, you must revise more than just once before the examination. The experts say that a dedicated 200 hours of study is important before appearing for this examination.
8. Solve sample model question papers. Model question papers or sample question papers are a good trick of remembering what you learn. Model question papers consist of different questions and tricky ones that will help you think better.
9. Keep stress at a distance. As exams are too stressful, they can drain your energy out. Instead, try to relax once in a while by practicing meditation or relaxation exercises. Along with working hard for your examination, concentrate on your health and make sure you are healthy enough before your exams.
10. Sleep well to give your body and brain goo rest to study well and fair well in your examination.

This has been a guide to CAIA Exam. Here we discuss the CAIA exam, why you should pursue it, its fees, exam structure, passing rate, etc. You may also have a look at the following articles –

• Portfolio Manager Job Description
• Guide to CFA® CIPM Exam
• CAIA vs. FRM
• Guide to CFA® Claritas Investment Certificate

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