CA Final AFM chapter-wise weightage & ABC analysis Nov 2026
Quick answer: CA Final AFM chapter-wise weightage, counted from ICAI's last four papers, puts four chapters on top: derivatives (10–18 marks printed per paper), portfolio management (6–18), foreign exchange exposure (8–17) and mutual funds (8–17). All four came up in every paper and together took 215 of the 456 marks ICAI printed, about 47%, or 50–60 marks a paper. Revise them first, then the B list below. AFM is on Wednesday, 4 November 2026, two days after FR, so you have about four weeks.
ICAI publishes AFM weightage only by section, as a percentage range. It doesn't publish chapter-wise marks. So we went through ICAI's four most recent AFM papers (May 2025, September 2025, January 2026 and May 2026), question by question, and tagged each one to the chapter it actually tested. Every paper is linked below, so you can check any line yourself.
How to read these numbers
Each AFM paper prints 114 marks, but you answer only 100:
- Part I: 15 MCQs of 2 marks each, set as case scenarios (usually five cases of three MCQs), so 30 marks, all compulsory. ICAI's Mock Test Papers for Nov 2026 have 23 MCQs instead (16 of 1 mark, 7 of 2 marks), still 30 marks. There is no negative marking, as ICAI's Guidance Notes for November 2026 (PDF) (opens in a new tab) confirm.
- Part II: six questions of 14 marks each. Question 1 is compulsory, and you answer any four of the other five.
So "mutual funds had 17 marks" means 17 marks printed on the paper. If they sat in a question you could skip, you might never have written them. Where ICAI gave an either/or sub-question, we've counted it once, under the first option.
Our sources are ICAI's own suggested answers for Paper 2:
- May 2025 (PDF) (opens in a new tab)
- September 2025 (PDF) (opens in a new tab)
- January 2026 (PDF) (opens in a new tab)
- May 2026 (PDF) (opens in a new tab)
Tagging a question to a chapter is our own reading, and AFM chapters overlap more than Ind AS do. Real options (the option to abandon or to wait) are counted under derivatives, APT and sovereign gold bonds under portfolio management, and bond refunding, repo and FCFE share valuation under security valuation. Someone else could tag a few of these differently and move a chapter by 4–6 marks, but not the overall order.
CA Final AFM chapter-wise weightage: the last 4 papers
These are the marks printed per chapter, MCQs and descriptive together:
| Chapter | May 2025 | Sep 2025 | Jan 2026 | May 2026 | Asked in |
|---|---|---|---|---|---|
| Derivatives (incl. real options) | 13 | 10 | 18 | 17 | 4 of 4 |
| Portfolio management | 16 | 6 | 14 | 18 | 4 of 4 |
| Foreign exchange exposure and risk management | 12 | 17 | 16 | 8 | 4 of 4 |
| Mutual funds | 13 | 17 | 12 | 8 | 4 of 4 |
| Security valuation | 6 | 19 | 10 | 9 | 4 of 4 |
| International financial management | 10 | 7 | 6 | 12 | 4 of 4 |
| Mergers, acquisitions and restructuring | 4 | 6 | 6 | 13 | 4 of 4 |
| Interest rate risk management | 7 | 4 | 6 | 7 | 4 of 4 |
| Business valuation | 11 | 6 | 4 | – | 3 of 4 |
| Advanced capital budgeting | 6 | 6 | 6 | – | 3 of 4 |
| Security analysis | 4 | 4 | 4 | 4 | 4 of 4 |
| Financial policy and corporate strategy | 4 | 4 | 4 | 4 | 4 of 4 |
| Risk management | 4 | – | 4 | 6 | 3 of 4 |
| Startup finance | – | 4 | 4 | 4 | 3 of 4 |
| Securitisation | 4 | 4 | – | 4 | 3 of 4 |
| Total printed | 114 | 114 | 114 | 114 |
Ten of the fifteen chapters came up in every paper. The other five came up in three of the four. Nothing was left out twice.
Four things stand out:
- Forex has had an MCQ case every time. All four papers had a forex case scenario in Part I (forward and option hedges, swap points, early delivery, rebooking a forward), plus at least one descriptive forex question: 8–17 marks a paper in all.
- Mutual funds are a near-certain NAV question. Every paper had an NAV, holding-period-return or load calculation, either as an MCQ case or as a 4–7 mark question, and twice as both.
- Valuation is bigger than it looks. Security valuation and business valuation are two chapters in two different ICAI sections, but together they took 65 marks across the four papers, more than any single chapter. Expect DDM, H-model, FCFF/FCFE, EVA and EV/EBITDA.
- The small chapters come as 4-mark parts. Security analysis (weak-form tests, technical analysis, chart patterns, Elliott wave) and financial policy (the CFO's role, sustainable growth, external funding) had a 4-mark part in all four papers. Startup finance did in the last three.
None of this is an ICAI rule, and the next paper can change. But a pattern that holds four papers in a row is worth practising for.
Question by question: which chapter ICAI set
Part I, the MCQ case scenarios:
| MCQs | May 2025 | Sep 2025 | Jan 2026 | May 2026 |
|---|---|---|---|---|
| Case 1 | CAPM, beta and alpha (Q1–5, portfolio) | NPV sensitivity (capital budgeting) | Repo on a GOI bond (security valuation) | Sovereign gold bond returns (portfolio) |
| Case 2 | Scheme NAV (Q6–8, mutual funds) | NAV and dividend (mutual funds) | Forward taken up early (forex) | Option to wait, risk-neutral (derivatives) |
| Case 3 | Hedging with Nifty futures (Q9–11, derivatives) | Long call plus long put (derivatives) | Portfolio return and CAPM (portfolio) | Takeover defences, carve-out (M&A) |
| Case 4 | Option vs forward hedge (Q12–15, forex) | Swap points, forward rate (forex) | Bank merger swap ratio (M&A) | Portfolio VaR (risk management) |
| Case 5 | – | Share-exchange EPS and P/E (M&A) | Product choice under uncertainty (capital budgeting) | Forward cancel and rebook (forex) |
Part II, the descriptive questions:
| Question (marks) | May 2025 | Sep 2025 | Jan 2026 | May 2026 |
|---|---|---|---|---|
| Q1(a) (6, compulsory) | Share value, P/E and growth model | EV/EBITDA valuation | Bonus-plan NAV (mutual funds) | International project with currency swap |
| Q1(b) (4) | EVA | Yen import, forward hedge | Bonus to cut promoter holding (P/E) | H-model share value |
| Q1(c) (4) | Types of risk (theory) | Business succession (startup) | Long call plus long put (derivatives) | Sustainable growth (theory) |
| Q2 | Portfolio SD (6) · forex quotes (4) · CFO's role (4) | Buy, hold or sell (6) · FRA (4) · financial sustainability (4) | Import payment options (6) · external funding needed (4) · real vs financial options (4) | APT (6) · option moneyness and payoffs (4) · startup funding (4) |
| Q3 | Capital budgeting with inflation (6) · cash in marketable securities (4) · weak-form tests (4) | Debenture refunding (6) · MF holding-period return (4) · blockchain risks (4) | Futures plus covered call (6) · cross rates (4) · political risk (4) | International APV (6) · MF dividend vs bonus plan (4) · NPA securitisation (4) |
| Q4 | Foreign subsidiary viability (6) · share exchange (4) · tokenisation or VC stages (4) | Systematic risk, portfolio (6) · hedge with Nifty futures (4) · technical analysis or currency risk (4) | Interest rate caps and floors (6) · EVA (4) · chart patterns (4) | Sharpe's single index (6) · closed-ended fund (4) · Elliott wave or zero-cost collar (4) |
| Q5 | MF NAV with loads (7) · private company valuation (7) | Foreign project NPV (7) · MF real return (7) | Sharpe cut-off (8) · GDR issue (6) | Two-stage FCFE (5) · bank gap and earnings at risk (7) · transaction vs translation exposure (2) |
| Q6 | Futures margin account (7) · caps and floors (7) | FCFF share value (7) · money market vs forward hedge (7) | MF NAV (6) · abandonment option (4) · startups or securitisation (4) | Merger offers (7) · Black-Scholes (7) |
One note if you practise from these: ICAI's May 2026 key says "No correct option" for MCQ 6.
What ICAI's official section-wise weightage says
ICAI's section-wise weightage for Paper 2 (PDF) (opens in a new tab) applies "till further changes are made" and allows a deviation of up to ±5%. Here are its ranges beside the marks we counted:
| Section | Chapters | ICAI range | Printed marks per paper (May 25, Sep 25, Jan 26, May 26) |
|---|---|---|---|
| I | Financial policy, risk management, advanced capital budgeting | 8%–15% | 14, 10, 14, 10 |
| II | Security analysis, security valuation | 20%–30% | 10, 23, 14, 13 |
| (unlabelled) | Portfolio, securitisation, mutual funds, derivatives | 20%–30% | 46, 37, 44, 47 |
| IV | Forex, international financial management, interest rate risk | 20%–25% | 29, 28, 28, 27 |
| V | Business valuation, M&A | 10%–15% | 15, 12, 10, 13 |
| VI | Startup finance | 2%–5% | 0, 4, 4, 4 |
ICAI's ranges are percentages of the 100 marks you answer, and our counts are of 114 printed, so ours run high. Even so, the third block (portfolio, mutual funds, derivatives) has been heavier than its range on paper, partly because of how we tag real options and APT. Section IV has been the steadiest: 27–29 printed marks every time. The full table for all papers is in CA Final syllabus and paper weightage.
What's in and out for November 2026
- Study material: ICAI's study material notice for November 2026 (PDF) (opens in a new tab) names the November 2024 edition (Reprint August 2025 and onwards) for AFM.
- No topic-wise exclusions for AFM. The study guidelines appended to ICAI's RTP for November 2026, Group I (PDF) (opens in a new tab) list exclusions for FR and updates for Audit, but nothing for AFM. All fifteen chapters are in play.
- ICAI's own "major topics" list. The same RTP names twelve areas "from which numerical questions are normally asked". Securitisation and startup finance aren't on it, which matches what the papers show: both come up as 4-mark theory.
The RTP's 14 AFM questions cover international financial management, forex, capital budgeting, both valuation chapters, derivatives, interest rate risk, portfolio, M&A, mutual funds, security analysis and three theory questions. Solve them all; how to use them in the last weeks is in ICAI RTP and MTP explained.
ABC analysis for CA Final AFM, November 2026
This is our priority order, built from the four papers and ICAI's ranges. It isn't an ICAI list.
| Tier | Chapters | Why |
|---|---|---|
| A: revise first, practise in full | Derivatives (futures, options, Black-Scholes, real options) · Portfolio management · Forex exposure · Mutual funds | Asked in all 4 papers, 50–60 printed marks a paper, about 47% of the total. Forex has had an MCQ case every time. |
| B: one long question each, then a second | Security valuation and business valuation (together 65 marks) · International financial management · M&A · Interest rate risk · Advanced capital budgeting | Up to 19 marks a paper each. IFM had an international project or funding question every time; M&A took 13 in May 2026. |
| C: theory notes and the RTP questions | Security analysis · Financial policy and corporate strategy · Risk management · Startup finance · Securitisation | Mostly 4-mark theory, often an either/or. Risk management also brought VaR (6 MCQ marks in May 2026). |
C doesn't mean skip. Five 4-mark theory parts are 20 marks, and they're the quickest marks in the paper if you've read the chapter. "Afm important questions" for theory are, from these papers, technical analysis and EMH, the CFO's role, startup funding and securitisation versus tokenisation. For all ten question types ICAI keeps setting, numericals and theory, with where each was set and the trap, see CA Final AFM important questions.
A worked example: the long strangle ICAI set twice
January 2026's compulsory Q1(c), for 4 marks, gave: a call bought at strike ₹620 for ₹42, a put bought at strike ₹480 for ₹8, lot of 150 shares, current price ₹550. It asked for the profit or loss at three prices and the two break-even points.
| Price at expiry | Working | Result |
|---|---|---|
| Premium paid | (₹42 + ₹8) × 150 | ₹7,500 |
| ₹550 | Both options lapse | Loss ₹7,500 |
| ₹380 | Put: (₹480 − ₹380) × 150 = ₹15,000, less ₹7,500 | Profit ₹7,500 |
| ₹680 | Call: (₹680 − ₹620) × 150 = ₹9,000, less ₹7,500 | Profit ₹1,500 |
| Break-even | ₹620 + ₹50 and ₹480 − ₹50 | ₹670 and ₹430 |
These are ICAI's figures in its January 2026 answers (PDF) (opens in a new tab). The same strategy had been MCQs 7–9 in September 2025 (PDF) (opens in a new tab), with a ₹750 call, a ₹600 put and a lot of 100. The trap in both: the premium is paid per share on both options, so it comes off every scenario, including the one where one option lapses. Forget it and every answer is off.
A four-week AFM revision order
AFM is on 4 November, with 3 November free after FR (full timetable). Our suggestion:
- This week: derivatives and forex. One question a day each: futures hedging and margins, an option strategy, Black-Scholes, then forward, money market and option hedges, cross rates and cancellation.
- Next week: portfolio and mutual funds. Sharpe's cut-off, CAPM and APT, portfolio SD and VaR; NAV with loads, dividend versus bonus plans, holding-period return.
- Week 3: the B list. One long question each from both valuation chapters (DDM, H-model, FCFF/FCFE, EVA), international capital budgeting and APV, M&A swap ratios, and caps, floors and FRAs.
- Last week: theory and MCQ cases. Revise the C-list theory, solve the RTP's 14 questions, and do the case-scenario MCQs from ICAI's past papers, 15 a day.
- 3 November: your formula sheet and theory notes only. No new questions.
Fit one full AFM mock in each of the first three weeks. A timed mock shows whether you lose marks in the A list or simply run out of time. Set each one up as in our guide to a CA Final mock test at home like the exam, from the 1:45 PM reading time to an exam-legal calculator. Our CA Final last 30 days mock test plan shows how to slot AFM around FR and Audit, and how to attempt a CA Final paper in 3 hours covers question choice. ICAI marks AFM workings step by step, as explained in step marking in CA exams.
Frequently asked questions
Which chapters are most important in CA Final AFM for November 2026?
On ICAI's last four papers: derivatives, portfolio management, foreign exchange exposure and mutual funds. All four came up every time and took about 47% of the printed marks (215 of 456). Security and business valuation together come next.
Does ICAI publish chapter-wise weightage for AFM?
No. ICAI publishes section-wise weightage (PDF) (opens in a new tab) as percentage ranges across six sections, with ±5% deviation allowed. Any chapter-wise figure, including ours, is counted from past papers.
What is the forex weightage in CA Final AFM?
Forex exposure took 8–17 printed marks per paper in our count, and it had an MCQ case scenario in all four papers. With international financial management and interest rate risk, it forms ICAI's Section IV, rated 20%–25%.
Is AFM the same as SFM?
AFM (Advanced Financial Management) is Paper 2 of the current CA Final scheme and replaced SFM. Chapter lists written for SFM, with leasing or dividend policy, don't match the current syllabus, so check any weightage table against ICAI's fifteen AFM chapters.
Can I skip startup finance or securitisation?
We wouldn't. Each came up in three of the four papers, mostly as a 4-mark theory part, sometimes as an either/or. A short note on each is cheap insurance.
Find out which tier costs you marks
A weightage table tells you where the marks are. Only a checked paper tells you where you lose them. Our CA Final AFM mock tests, part of our CA mock test series, are full-syllabus papers on ICAI's current pattern: 30% MCQs and 70% descriptive, 100 marks in 3 hours. Every chapter is covered across the mocks, with more weight on the most-asked.
You write by hand and upload one PDF. Your checked copy comes back within 24 hours, with ICAI-style step-wise marks and the reason for every mark cut, including the correct line to write. You'll see whether your marks go in derivatives workings, a forex hedge or the theory.
If you're choosing a CA test series for the whole of CA Final Group I, AFM is the middle paper, with one day either side, so plan its mock alongside FR and Audit. You can read preview pages of the first mock before you buy. ICAI's own past papers and RTPs are on our CA Final past year question papers page, and the FR version of this analysis is in CA Final FR chapter-wise weightage. For a 3-hour time plan and a 3-mock schedule before the exam, read CA Final AFM mock test.