CA Final – Advanced Financial Management (AFM)—Topic Guide

Cracking CA Final Advanced Financial Management (AFM) isn’t just about covering the entire syllabus—it’s about knowing where to focus. With evolving exam trends and a new ICAI syllabus in place, students need a strategic study plan. In this blog, we break down the chapter-wise weightage and highlight the high-scoring topics that consistently appear in exams. Whether you're just starting your prep or fine-tuning your revision, this guide will help you prioritise what matters most for Paper 2 – AFM.

Table of Contents

1. Introduction
2. Chapter-Wise Weightage (Based on Past ICAI Papers)
3. Most Important Topics You Should Not Miss
4. How to Use This Weightage for Smarter Study
5. Conclusion

Check out Taxmann's Advanced Financial Management (AFM) | CRACKER with Case Scenarios Based MCQs for—CA Final – Group I | Paper 2 is the 11th Edition by CA. (Dr) K.M. Bansal & CA. Anjali Agarwal, meticulously designed for the Sept. 2025/Jan. 2026 CA Final exams. It consolidates advanced finance concepts—from capital budgeting and portfolio management to derivatives and international finance—into a robust practice-oriented framework. Coverage spans past exam questions (up to May 2025), scenario-based MCQs, and detailed solutions that clarify examiner expectations. Students benefit from chapter-wise marks distribution, trend analysis, additional solved practice problems, and a clear mapping to ICAI materials. The structured layout and retention aids foster deep conceptual understanding and exam readiness.

1. Introduction

Preparing for CA Final Advanced Financial Management (AFM) requires more than just studying the syllabus—you need to know where to focus. Based on the latest ICAI exam trends (Nov. 2022 – May 2025) and the new syllabus under the ICAI scheme, this blog outlines the chapter-wise weightage and high-priority topics that can help you optimise your study plan and secure a good score in Paper 2 – AFM.

2. Chapter-Wise Weightage (Based on Past ICAI Papers)

Here’s a consolidated table based on past 5–6 exams, indicating average weightage per chapter in CA Final Advanced Financial Management:

3. Most Important Topics You Should Not Miss

Here are the critical topics that frequently appear across attempts, often with complex numerical or case-based questions:

3.1 Capital Budgeting (with Risk Analysis)

• NPV, IRR, MIRR, Sensitivity Analysis, Real Options
• Decision-making under uncertainty

3.2 Forex & International Financial Management

• Hedging – Forward Contracts, Money Market Hedges
• Exchange Rate Theories, Parity Conditions
• Currency Exposure Management

3.3 Derivatives & Risk Management

• Options Valuation (Black-Scholes), Futures Pricing
• Interest Rate Derivatives, Swaps

3.4 Mergers & Acquisitions

• Exchange Ratio, Synergy Gains, Post-Merger EPS
• Due Diligence Considerations

3.5 Portfolio Management & Security Valuation

• CAPM, APT, Sharpe & Treynor Ratios
• Risk-Return Trade-off

Bonus Tip – These 5 areas usually cover 55–65 marks in the exam when including MCQ overlaps.

4. How to Use This Weightage for Smarter Study

• Prioritise Topics by ROI – Focus first on high-weightage chapters (Capital Budgeting, Derivatives, Forex). These offer the best return on time invested.
• Link Practice to Exam Trend – Use your AFM CRACKER to solve previous ICAI questions arranged chapter-wise and sub-topic wise, and check what areas ICAI emphasises more.
• Integrate Theory with Practice – Even numerically heavy chapters may include 2–3 mark theory questions. Don’t skip them—they’re easy scoring.
• Dedicate Time to Case Scenario-Based MCQs – Mastering this area gives you a solid 20-mark base. Solve 5–10 integrated MCQs daily from your CRACKER.

5. Conclusion

Knowing the syllabus isn’t enough—you need to know what matters most. This chapter-wise weightage guide will help you study smart, not just hard. Focus on high-yield topics, practice thoroughly, and revise strategically. And remember—clarity, application, and time management will win you Paper 2.