Chartered Alternative Investment Analyst (CAIA)
What Is a Chartered Alternative Investment Analyst (CAIA)?
Chartered Alternative Investment Analyst (CAIA) is a professional assignment conceded by the Chartered Alternative Investment Analyst Association to competitors who have completed Level I and Level II examinations. The Chartered Alternative Investment Analyst Association has laid out the assignment of CAIA to confirm that the holders have fulfilled the association's educational guideline for experts in the area of alternative investments. The alternative investments that a Chartered Alternative Investment Analyst is prepared to survey incorporate hedge funds, venture capital, private equity, funds of funds, derivatives, and real estate investments.
Grasping Chartered Alternative Investment Analyst (CAIA)
The Chartered Alternative Investment Analyst assignment is intended for financial professionals who will be working fundamentally in the alternative investment space. This normally means individuals working for hedge funds and private equity, albeit a CAIA assignment is additionally helpful to individuals working for traditional financial institutions in contemporary jobs, similar to those dealing with the derivatives book or the trading desk.
Requirements for the Chartered Alternative Investment Analyst Designation
To receive the assignment, people must meet least education and experience requirements and must pass a two-level educational program that incorporates points going from qualitative analysis and trading speculations of alternative investments to indexation and benchmarking. The Level I exam remembers 200 numerous decision inquiries for:
- Professional Standards and Ethics
- Hedge Funds
- Prologue to Alternative Investments
- Private Equity
- Risk Management and Portfolio Management
- Structured Products
- Real Assets
The Level II exam incorporates 100 numerous decision questions and three arrangements of article questions. Questions are refreshed every year to reflect industry progress. The inquiries cover:
- Products
- Professional Ethics and Standards
- Private Equity
- Asset Allocation and Institutional Investors
- Structured Products
- Hedge Funds and Managed Futures
- Real Assets
The exams are administered in March and September, and the Chartered Alternative Investment Analyst Association suggests no less than 200 hours of study.
The cost of enrollment is $400, and Level I and Level II exam registration is $1,250 for every exam. Once certified, there are annual membership duty of $350 for one year or $650 for quite a long time, and a self-evaluation instrument to be completed like clockwork to keep up with the assignment. Early registrants and members of certain partner organizations might fit the bill for scholarships or discounts to assist with settling the cost of enrollment and sitting for the Level I and Level II exams.
Differences Between the CAIA and the CFA
Like earning the Chartered Financial Analyst (CFA) assignment, having the CAIA assignment gives people access to occupations, member sections and wellsprings of education. Since the scope of alternative investments is decisively unique in relation to that of conventional investments, like stocks, bonds, mutual funds, and exchange-traded funds, the CAIA assignment was made to recognize those people who are best qualified in dealing with this class of investments. The CFA remembers content for alternative investments, however the CAIA plunges a lot further into the subject and the valuation methods specific to each.
Of the two, the CFA is viewed as the more troublesome assignment to get, as the exams cover more happy and have generally had lower finish rates than the CAIA exams. Overall, the CFA is viewed as a phenomenal general assignment for the financial industry, however the CAIA can be a distinction creator in niche areas of finance like private equity or hedge funds.
Features
- Albeit the CFA incorporates alternative investments, the CAIA coverage is more inside and out.
- Chartered Alternative Investment Analysts are prepared to evaluate alternatives investments, for example, hedge funds, venture capital, and private equity.
- A CAIA assignment is likewise valuable for individuals overseeing derivatives books or trading desks.
