CFA® Python PSM | Level 1 & Level 2 Guide

Python Programming Fundamentals (Python I): Level 1 & Level 2 Beginner

The CFA Python Programming Fundamentals module takes you through Python step by step, starting with the basics. For candidates balancing the module with Level 1 prep, it requires no previous coding experience. You’ll write and run code in a browser using Jupyter Notebooks, so there is no complex software to install or set up.

Here’s what you’ll cover:

Getting Started With Python and Jupyter Notebooks

Start by getting familiar with Jupyter Notebooks, the environment you’ll use throughout the module. You’ll learn basic Python syntax, how to assign variables, and how to work with common data types such as strings, integers, and floats.

Working With Data Using Pandas

Next, you’ll learn how to use Pandas, a Python library for working with and analyzing data. You’ll practice importing financial datasets, such as CSV files containing historical stock prices, cleaning and filtering data, and calculating summary statistics.

Applying Python to Financial Data

Finally, you’ll apply your new Python skills to financial data. You’ll calculate daily returns, rolling averages, and volatility, then use libraries such as Matplotlib to turn your results into visualizations.

Level 2 (Advanced): Python, Data Science & AI

Python II is the advanced Python module for CFA Level 2. It builds on the skills covered in Python I and moves into more advanced applications of Python in finance.

What You’ll Learn:

The CFA Python Data Science and AI module covers predictive modeling, machine learning, and natural language processing (NLP). You’ll learn how to work with data to develop predictive models, analyze financial information, and understand how AI techniques are applied in areas such as investment analysis, portfolio management, and risk assessment.

Python I to Python II Progression

If you completed Python I at Level 1, you can progress to Python II at Level 2. If you completed Financial Modeling at Level 1 and are new to Python, you’ll need to take Python I at Level 2 first to develop the foundation required for Python II.

Level 3: The Python PSM Pathway Ends at Level 2

Python is not offered as a PSM at CFA Level 3. The Python progression ends with Python II at Level 2, so there is no three-level Python track. You are still required to complete an eligible PSM at Level 3 before receiving your exam results. However, the focus shifts from Python and data science to portfolio management. Available modules include options such as Portfolio Construction and Manager Selection. The Python skills developed at Levels 1 and 2 can still be useful for financial analysis and other data-focused work, even though they are not part of the Level 3 PSM options.

When to Complete Your CFA Python PSM

Choosing the right time to complete your CFA Python PSM can help you meet the requirement without taking valuable time away from your exam preparation. CFA Institute allows you to complete the PSM after registration, during your studies, or after taking the exam.

• Keep exam preparation your priority: Focus first on the CFA curriculum, practice questions, review, and mock exams. Avoid letting the PSM take time away from the preparation you need for exam day.
• Consider the post-exam waiting period: The 5 to 7 weeks between taking your exam and receiving your results can be a useful window for completing the PSM. Your exam is already behind you, giving you more time to focus on the module.
• Set aside enough time for the module: Plan for the time required to complete the lessons, exercises, and other module activities. Starting with enough time gives you more flexibility and helps you avoid rushing through the material.
• Finish before your results are released: Completing an eligible PSM is required before you can receive your CFA exam results. Make sure you finish and submit the module before the results-release deadline.

How the CFA Python PSM Can Support Your Career

Python skills can be useful across quantitative analysis, asset management, data science, risk management, and other data-focused finance roles. Completing the CFA Python PSM also gives you practical skills and experience that you can highlight on your resume and LinkedIn profile.

Resume Tips for Your CFA Python PSM

• Use the full module name: Add the exact module you completed to your resume or LinkedIn. Example: CFA Institute Practical Skills Module: Python Programming & Data Analysis
• Include relevant technical skills: Mention skills that reflect your module experience, such as Python, Pandas, Jupyter Notebooks, data analysis, machine learning, or NLP. Example: Python | Pandas | Jupyter Notebooks | Financial Data Analysis
• Show how you applied your skills: Go beyond simply listing Python by describing what you used it for. Example: Applied Python and Pandas to analyze financial datasets, calculate financial metrics, and create data visualizations.
• Highlight advanced Python II skills: If you completed Python II, include the data science and AI concepts you worked with. Example: Applied Python, machine learning, and NLP concepts to finance-focused data analysis and predictive modeling.