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Certified Portfolio Manager - CPM

About The CPM Program
Objective1
The CPM Approch
The Body of Knowledge
For Whom
Skills to Succeed
Eligibility
Duration
Period of Validity of Enrollment
Program Structure
Exemption from Foundation Examination
Exemption from Associateship Examination

About The CPM Program

Leading to the CIIA Qualification from ACIIA, London

Economic liberalization and decontrol have transformed the economic landscape of India. Globalization of the economy is at the forefront of the reforms agenda of the Government. As greater faith was placed on the allocative efficiency of the markets, the Government progressively liberalized controls to overcome severe distortions that impeded the functioning of the market forces.

Portfolio Management

The reforms process initiated in the early nineties had far reaching implications for capital markets too. The abolition of CCI, free pricing of securities and the entry of private sector and foreign mutual funds has instilled competition and market orientation in the capital markets. Global fund management giants like Merrill Lynch, Templeton, Morgan Stanley, Alliance, Threadneedle and Jardine Fleming, among others have set up mutual fund operations in India. Other developments like permitting mutual funds to participate in the call markets and GDR market as well as the introduction of index funds, factor funds and sector funds mean that the Indian mutual fund segment has come of age. And if the above developments are rapid enough, the emergence of internet trading is likely to drastically change existing portfolio management paradigms.

Rapid changes in the global economic scenario calls for incisive analytical skills and an ability to take swift portfolio management decisions. With an increase in the number of high net worth investors, the opportunities for private equity fund management has also proliferated. In an emerging information age the role of an investment consultant who can adeptly interpret economic and corporate developments is likely to be at a premium. With imminent deregulation of the insurance and pension sector, huge investable surpluses are likely to come into the capital markets. This is likely to open up new vistas for investment analysts and portfolio managers.

In light of these dynamic developments, The Council for Portfolio Management & Research (CPMR) has developed a unique Professional Certification Program in Portfolio Management for the benefit of students and professionals/working executives engaged or interested in the area of portfolio management and investment analysis. Successful completion of the CPM Program leads to membership in The Council for Portfolio Management & Research (CPMR) and the members of CPMR are entitled to use the designation of "Certified Portfolio Manager" in full and "CPM" in short.

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Objective1

The CPM Program has the following objectives :

  • To develop a new body of knowledge and make it available for those seeking challenging careers in the new era of liberalization and globalization;
  • To introduce participants to the financial system and capital markets both in India and abroad;
  • To impart a strong conceptual foundation in investment analysis and portfolio management;
  • To give adequate exposure to emerging areas like equity and debt research, scientific asset allocation, portfolio insurance etc.;
  • To prepare individuals capable of providing leadership in portfolio management and mutual funds industry operating in a globalized environment.

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The CPM Approch


The CPM Program follows five distinctive but inter-related approaches:

Theoretical Studies aimed at improving candidatesí understanding of certain fundamental phenomena and relationships underlying the changing world.

Case Studies linking the theoretical studies to the practical problems faced by portfolio managers.

Practical Exposure to industry practices takes place through a variety of activities like management development programs, seminars, conventions, etc.

Global Perspective to business by encouraging the candidates to appreciate and get exposed to the international business environment and practices.

Ethical Focus aimed at inculcating in the candidates an ethical approach in their professional interactions and a sense of personal, corporate, and social responsibilities.

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The Body of Knowledge

CPMR visualizes the body of knowledge of the CPM Program as covering three interrelated areas:

The Core body of knowledge : Specialized fields and skills which are essential to business and its orderly functioning.

The evolving concepts, techniques and strategies : Debated and tested by researchers and practitioners but not yet understood well enough to be included in the core areas.

The frontiers : The newest ideas, speculative and often controversial, but offering the promise of practical insights into the process of analysis, and decision-making.

Ideas enter the realm of knowledge at the frontiers and gradually as they are tested and refined, move towards the core body of knowledge.

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For Whom

Keeping in mind the avenues open to candidates who take up the CPM Program, this course would be useful for:

  • Finance and Accounting Professionals like CFAs, CAs, CWAs, CSs, MBAs who seek careers in portfolio management and mutual funds.
  • Professionals employed in the investment and treasury departments of banks and financial institutions.
  • Professionals working in the investment departments of corporates.
  • Entrepreneurs and managers engaged in equity research and portfolio management.
  • Candidates pursuing professional courses like CFA, CA, CWA, CS, CAIIB, CTM, CIB etc.
  • Candidates pursuing full-time postgraduate programs in commerce, economics, mathematics, statistics and management.
  • Other individuals associated with financial markets.

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Skills to Succeed

The surge of activity in portfolio management requires constant monitoring and managing. To succeed in these areas, candidates should possess the following skills :

  • Analytical dexterity
  • Lateral thinking and quick decision-making
  • Ability to withstand pressure

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Eligibility

The following categories of applicants are eligible for admission into the CPM Program

  • CFAs, CAs, CWAs, CSs, CTMs and CIBs.
  • Candidates with PG qualifications like PGDBA/MBA/MMS/MFC (Master of Finance & Control)/MIB (Master of International Business)/MBE (Master of Business Economics)/MCom/MA (Eco)/MSc (Maths), MSc (Stats) etc.

The following categories of candidates are also eligible to enroll into the CPM Program, provided they are graduates :

  • Candidates who passed CFA (Level I),CA (Inter),CWA (Inter), CS (Inter) or CAIIB (Part I).
  • Bankers with CAIIB qualification.
  • Full-time students of the PGDBA/MBA/MMS/MFC/MIB/MBE/MCom programs with business schools/ University Departments, IIMs and other reputed institutions.
  • Full-time students of MCom/MA (Eco)/MSc (Maths)/MSc (Stats).
  • Executives having a minimum of five years working experience in executive capacity in finance/commercial banking/portfolio management sector.

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Duration

The CPM Program may be completed in a period of one year.

Period of Validity of Enrollment

The enrollment of a candidate in the CPM Program is valid for three years from the date of enrollment. Candidates who are unable to complete the program within the three-year validity period, but, keen on continuing in the program, are required to register de novo.

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Program Structure

The CPM Program covers all the important topics related to portfolio management. The broad areas in which the body of knowledge is developed and the candidates will be examined, are divided into Three Levels.

Foundation Level : The Foundation Level examination will have 2 Papers of 3 hours duration each (carrying a total of 200 marks). The Foundation Exam will be administered on a multiple choice format. This examination will cover preliminary and introductory topics pertaining to the areas of study.

Associateship Level : The Associateship Level examination will have 3 Papers of 3 hours duration each (carrying a total of 300 marks). This examination will test the conceptual and technical aspects as well as the working knowledge in all the areas of study.

After successful completion of the Associateship Level, the CPM candidates are eligible to sit for the final examination of ACIIA. On completing the Final Level of ACIIA, they will be exempted from the Fellowship Level of CPMR. Alternatively the CPM candidates can also pursue the Fellowship Level of the CPMR.

Fellowship Level : The Fellowship Level examination will have 2 Papers of 3 hours duration each (carrying a total of 200 marks). This examination will test the candidate's expert level of knowledge and understanding in all the areas of study.

The areas covered under all the 3 levels of the CPM Program, with different degree of depth and coverage are as follows:

  • Financial Accounting & Financial Statement Analysis
  • Quantitative Analysis & Statistics
  • Economics
  • Corporate Finance
  • Asset Valuation
  • Portfolio Management
  • Ethics & Professional Standards

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Exemption from Foundation Examination

The following candidates are given exemption from taking the Foundation Exam: CAs/CWAs/CSs/CTMs/CIBs and Students of CA/CWA/CS courses who passed Inter-level exams

  • MBA/PGDBA and equivalent qualifications
  • CAIIBs
  • Students of CFA Program who passed Level I examinations

Exemption from Associateship Examination

All candidates who have completed Level III of the CFA Program are exempted from appearing for the Foundation and Associateship Examinations and can directly appear for the Fellowship Exam of CPMR or the Final exam of ACIIA.

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