The CFA Exam is one of the toughest financial certifications in the world. The 3 levels of the CFA examination need to be worked through with dedication, hard work, and a well-organised study schedule. But exactly how tough it is? What can one expect at CFA Level 1, CFA Level 2, and CFA Level 3 and what is CFA preparation time
This blog post with CFA exam blueprint dissects the format, pass rate, and issues at all levels so that you can strategise for the exam like a pro accordingly.
CFA Exam Overview
CFA exam is a three-tier investment management, financial analysis, and ethical guidelines test.
To be a CFA Charterholder, the candidates must pass the three tiers and acquire four years of professional experience in the industry.
Key CFA Exam Facts
- Pass Rates: CFA Level 1 (42%), CFA Level 2 (44%), CFA Level 3 (49%)
- Study Hours Needed: 300+ hours per tier
- Exam Format: Item set (Level 1), item set (Level 2), essay + item set (Level 3)
- Difficulty: Increases significantly at each level
- CFA Charterholder Growth: Over 190,000+ CFA Charterholders globally
- CFA Level 1: Structure, Difficulty & Pass Rate
CFA Level 1 Exam Structure
- Duration: Two 2 hours 15 minutes sessions
- Questions: 180 multiple-choice questions
- Exam Format: Computer-based testing
How Difficult is CFA Level 1?
- Has 10 broad subjects, including ethics, quantitative methods, economics, and financial reporting.
- Conceptual understanding is needed rather than critical analysis.
- Should have good time management since it is multiple-choice.
CFA Level 1 Pass Rate
- Conventionally 42% pass rate
- Candidates study approximately 300+ hours
How to Pass CFA Level 1
- Prioritize Ethics—it carries high weights.
- Master Financial Reporting & Analysis (FRA), which is extensively tested.
- Practice CFA mock exams and improve time management.
CFA Level 2: Difficulty & Key Challenges
CFA Level 2 Exam Structure
- Duration: Two sessions, 2 hours 12 minutes each
- Questions: 88 item-set questions (vignettes with multiple-choice)
- Exam Structure: Computer-based
Why is CFA Level 2 So Difficult?
- Shift from conceptual to analytical thinking.
- Use of item-set questions, with case study interpretation.
- Increased focus on Financial Reporting, Portfolio Management, and Fixed Income.
CFA Level 2 Passing Rate
- 44% pass rate, higher than Level 1.
- 350+ hours preparation needed.
Tips to Pass CFA Level 2
- Make yourself well aware of financial models and valuation techniques in depth.
- Spend more time practicing the solution of vignette-type questions to be a top-notch performer in understanding.
- Spend more time studying tough topics like Equity Valuation & Derivatives.
CFA Level 3: The Final Hurdle & Exam Expectations
CFA Level 3 Exam Pattern
- Time: Two sessions of 2 hours 12 minutes
- Questions: Constructed response (essay) + multi-choice item sets
- Exam Format: Computer-based
Why is CFA Level 3 extremely tough?
- Requires writing ability to provide logical responses in essays.
- Extremely much emphasis on Portfolio Management & Ethics.
- Facts must be used and not recalled by the examinees.
CFA Level 3 Pass Rate
- Highest amongst the three, pass rate 49%.
- Demanding 400+ hours study time.
Tips to Pass CFA Level 3
- Master essay writing—brief and to the point in responses.
- Improve time management—essay questions consume a lot of time.
- Portfolio Management Practice, most heavily weighted.
CFA Exam Issues & Study Time
Greatest Most Urgent Issues Faced by CFA Candidates
- Detailed Syllabus – Requires long-term commitment.
- Time Management – Hard to plan time for work, study, and personal life.
- Difficulty in Ethics Section – Hard to consistently do well.
| CFA Level | Study Hours Required |
| Level 1 | 300+ hours |
| Level 2 | 350+ hours |
| Level 3 | 400+ hours |
FAQs
- What is the most difficult CFA exam level?
CFA Level 2 is usually the toughest due to its challenging item sets and high level of analysis required.
- How many years does it take to complete all three CFA levels?
It usually takes 2-2.5 years to complete the CFA program.
- Is work experience required to pass CFA?
Yes, you can pass all three exams without experience, but four years of work experience are required for the charter.
- What is the CFA pass rate?
Level 1: 42%, Level 2: 44%, Level 3: 49%.
- How much does CFA cost?
Cost is between $3,000 and $5,000, depending on early registration and study guides.
- What if I fail the CFA exam?
You can appear for the exam in the next sitting (CFA Level 1 is administered four times, Levels 2 & 3 twice a year).
- How many times can I attempt CFA?
You can appear for the exam any number of times.
- Are mock exams for CFA important?
Yes! Mock tests improve speed, accuracy, and confidence.
- Are CFA exams marked negatively?
No, penalisation is not done on incorrect answer options in CFA exams.
- Is CFA worth it?
Yes, CFA charterholders see a mean salary increase of 192% and receive world finance opportunities.
Conclusion & Key Takeaways
The CFA exam will be challenging for some, but the right approach to preparation allows one to succeed. Each step gets more complicated than the last, but it's all worth it.
Key Takeaways
- Level 2 of CFA is the most challenging due to item-set questions.
- Essay-writing skills need to be top-notch to pass Level 3 of CFA.
- Mock tests and time management are required to crack it.
Ready to begin your CFA journey? Enrol now to learn from the experts!
