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.
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!
If you’re planning to build a career in finance, investment banking, equity research, or portfolio management, your journey will likely start with the CFA Level 1 Exams. And it’s completely normal to feel a little overwhelmed at first – the curriculum is vast, the exam pattern is new, and everyone seems to say it’s “the toughest finance exam out there.”
The CFA Level 1 exam is the first step into global finance careers, but most candidates fail not because it’s too hard, but because they approach it without a clear strategy.
But here’s the good news: Once you understand how the CFA Exams actually work, what they test, and how to prepare for them, the entire process becomes far more manageable.
I’ll break down everything you need to know – the CFA Level 1 syllabus, what the CFA Level 1 Exams involve, what you’ll study, how difficult it really is, preparation strategy, common mistakes, and more. By the end, you’ll know exactly how to approach the CFA Certification smartly – not stressfully. Let’s get started.
📊CFA Level 1 Exam Overview
180 multiple-choice questions
2 exam sessions (135 minutes each)
Covers 10 subjects, including Ethics, FRA, and Economics
Requires 300-350 study hours
Pass rate: ~40-45%
What Exactly Are the CFA Level 1 Exams?
Before we go further, let’s quickly answer the big question: what is CFA? The CFA Certification is a globally respected certification that trains you to think like an investment professional – analysing markets, evaluating companies, and making sound financial decisions.
Think of the CFA Level 1 Exams as the gateway into the world of professional investing.
Level 1 isn’t trying to turn you into a portfolio manager overnight – it’s simply building your base. It’s like learning a new language. You don’t begin with deep conversations. You begin with simple words and short phrases, and gradually, it all starts to click. Once those basics are in place, the more complex concepts no longer seem so intimidating.
Level 1 does the same:
The CFA Level 1 exam is the first stage of the Chartered Financial Analyst program, testing foundational knowledge in finance, including ethics, financial reporting, economics, and investment tools through 180 multiple-choice questions.
It teaches you the core concepts in finance so you can confidently understand and later analyse how markets work, how companies perform, and how investments are evaluated. Here’s the big picture:
CFA Level 1 Exams are important because they set your entire CFA journey in motion. The CFA Level 1 syllabus builds your fundamentals in:
Financial reporting
Quantitative methods
Capital markets
Ethics
Portfolio basics
These aren’t just exam topics – they’re skills you’ll actually use in real-world finance roles. These become the backbone of CFA Levels 2 and 3. If Level 1 is strong, the rest of the CFA program becomes significantly easier. The CFA Level 1 exam is often perceived as difficult, but the CFA Institute highlights that the real challenge lies in breadth rather than depth.
CFA Level 1 Exams: Full Syllabus Breakdown (2025)
The CFA Level 1 syllabus is built around 10 core topics – each one adding a different piece to your overall finance skill set.
Here’s a simple breakdown:
1. Ethical & Professional Standards:This is the backbone of the CFA program. You learn how to act responsibly and make decisions that put investors first.
2. Quantitative Methods:All the numbers that drive finance – statistics, probability, time value of money – basically, the maths behind smart decisions.
3. Economics:Micro and macro concepts, inflation, growth, and how entire economies function.
4. Financial Reporting & Analysis (FRA): Often considered the most important Level 1 topic. You learn how to read financial statements and truly understand what they’re saying.
5. Corporate Issuers:How companies make financial choices – capital structure, dividends, and funding decisions.
6. Equity Investments: How stock markets work, how stocks are valued, and the different strategies investors use.
7. Fixed Income: All things bonds: yields, risks, credit analysis – a huge part of real-world portfolio management.
8. Derivatives: Options, futures, swaps, and how they help manage risk or create returns.
9. Alternative Investments: Real estate, hedge funds, private equity, commodities – all the “non-traditional” assets.
10. Portfolio Management & Wealth Planning: The basics of building a solid portfolio, balancing risk and return, and thinking like a wealth manager.
Every topic builds on the others, and that’s what makes the CFA curriculum so effective. It slowly brings all the pieces together, allowing you to see the bigger picture of how the financial world works.
You can also explore these CFA course details to understand how the full program strengthens your resume and boosts your long-term career profile.
📊Quick CFA Facts: Most candidates spend around 300-350 hours preparing over 6-8 months, depending on their background and study consistency. (Source: CFA Institute)
CFA Level 1 Topic Weightage (2025)
A topic’s weightage is basically the exam’s way of telling you how important the CFA subjects really are. Here’s the updated distribution:
Topic
Weightage (%)
Ethics
15-20%
Quantitative Methods
8-12%
Economics
8-12%
Financial Reporting & Analysis
13-17%
Corporate Issuers
8-12%
Equity Investments
10-12%
Fixed Income
10-12%
Derivatives
5-8%
Alternative Investments
5-8%
Portfolio Management
5-8%
Focus Areas: Ethics, FRA, Equity, and Fixed Income carry the most weight – mastering these gives you a major advantage.
Registering for the CFA Level 1 exam is simple, but many students get confused about deadlines and requirements. Here’s a clear roadmap:
Create your CFA Institute account – Visit the CFA Institute website and register using your email ID.
Choose your exam location – Select your test centre or opt for available locations in your city.
Pay the fees – Early registration helps you save more.
Schedule your exam date – After paying, book your exact exam day and session slot.
Exam Windows & Registrations
The CFA Level 1 Exams are conducted 4 times a year:
February
May
August
November
CFA Registration usually opens 10-12 months in advance. If you’re planning to attempt it. It’s smart to pick a date 6-9 months ahead so you can schedule your study time comfortably.
Registration tips:
Always aim for early registration, as the CFA fees are much lower.
Pick an exam window that gives you at least 6 to 8 months for preparation.
Once registered, track the deadlines for rescheduling, deferrals, and admission tickets.
Eligibility for CFA Level 1
You can appear for the CFA Level 1 exams if you meet any of these CFA Eligibility criteria:
Have a bachelor’s degree (completed or in final year).
Have 4,000 hours of work experience (any field).
Have a combination of university + work experience totalling 4,000 hours.
CFA Level 1 Exams – Program Fee Details
Preparing for the CFA Level 1 exam is an investment in your finance career, and Imarticus Learning offers flexible modes to suit every learner – whether you prefer a classroom environment or live online learning.
The CFA course fees vary for every level based on the training institute, time of registration, scholarship eligibility, and a lot more. Here’s a brief overview of Imarticus Learning’s fees for CFA Level 1:
Mode
Fee (INR)
Reg. Fee
Includes
Classroom
₹75,000
₹10,000
In-person classes, resources, mentorship
Live Online
₹60,000
₹10,000
Live online classes, resources, mentorship
Every tough moment in your CFA Level 1 preparation is helping you grow – not just academically, but as a future finance leader. This video will guide you through a solid study plan.
CFA Level 1 Exam Format (2025 Pattern)
Here’s what the CFA Level 1 exam pattern actually looks like:
To excel under the CFA exam pattern, you need a combination of: ✔ Concept clarity. ✔ Problem-solving skills. ✔ Time management. ✔ Daily practice. ✔ Rote learning won’t work here.
Understanding the CFA Passing Score (MPS)
CFA Institute does not reveal the exact cut-off or “Minimum Passing Score” (MPS), but historically:
MPS is estimated to be around 60-70%
Ethics adjustment can influence borderline results.
A strong performance in heavy-weight subjects improves your chances significantly.
Aim for a minimum of 70% across topics in mocks to be safe.
Before you start preparing, you need to understand what you’re up against. The CFA Level 1 exam is designed to test your knowledge across a wide range of finance and investment topics. Knowing the CFA course duration and exam structure is the first step toward building an effective preparation strategy and avoiding costly surprises on exam day.
Component
Details
Total Questions
180 MCQs
Sessions
2 Sessions
Duration per Session
135 minutes
Total Exam Time
4.5 hours
Format
Computer-Based
Negative Marking
No
Question Type
Concept + Application
CFA Level 1 Study Hours Breakdown
Preparing for CFA Level 1 is not just about studying hard – it’s about studying right. From mastering core subjects like Financial Reporting to practising mock exams, a structured study hours breakdown ensures you stay consistent, avoid burnout, and maximise retention of the CFA modules.
Study Activity
Hours
Concept Learning
150-170
Practice Questions
100-120
Mock Exams
50-60
Total
300-350
Candidates who clear on the first attempt typically exceed 300 hours and complete at least 2,000 practice questions.
Did you know? According to the CFA Institute, candidates who successfully clear Level 1 typically invest over 300 hours in preparation. The exam is not designed to test rote memorisation but the ability to apply financial concepts across a wide syllabus. What makes it challenging is not the complexity of individual topics but the consistency required to retain and apply them under exam conditions.
CFA Study Plan: How to Prepare for CFA Level 1 Exams
To plan effectively, it’s useful to know how each subject builds on the next. This detailed look at the CFA Course Syllabus will help you understand the bigger learning roadmap. Here’s a practical CFA study plan followed by successful candidates who have cleared the CFA Level 1 Exams:
✔ Start 6-8 months early Consistency matters more than last-minute cramming.
✔ Follow the 70/20/10 rule 70% → Learn concepts 20% → Practice questions 10% → Mocks & revision
✔ Make FRA your strongest area Its weightage alone can boost your overall score.
✔ Solve 1,500-2,000 questions Patterns repeat even if questions don’t.
✔ Attempt 3-5 full mock exams Build stamina – the real exam is long.
✔ Consider joining a structured coaching program If you’re a working professional, mentoring helps maintain discipline.
Ideal Study Hours for CFA Level 1 Exams
The recommended CFA prep time is around 300-350 hours spread over 6-8 months. Here’s how most successful candidates divide it:
Concept learning: 150-170 hours.
Practice questions: 100-120 hours.
Mock exams & revision: 50-60 hours.
This video gives a clear overview of how to clear CFA Level 1 while working full-time:
Best Study Materials for CFA Level 1 Exams
Your CFA preparation becomes significantly easier when you use the right resources. Here’s an overview of the CFA study material most successful candidates rely on:
1. CFA Institute Official Curriculum
Most accurate
Directly exam-relevant
End-of-chapter questions are extremely valuable.
Use this CFA Curriculum for concept clarity.
2. Question Banks Great for daily practice and testing understanding. Perfect for:
4. Study Notes (Summaries) These help revise faster and simplify difficult concepts – especially FRA, Quant, and Fixed Income.
5. Professional Training Programs (Optional but very effective) Opting for professional training is quite useful if you are:
A working professional.
Struggle with discipline.
Prefer structured learning.
Need mentorship and doubt-solving.
How Difficult Are the CFA Level 1 Exams Really?
Let’s be honest – the CFA Level 1 difficulty level is quite challenging. But not impossible with the right CFA training. The syllabus is huge and requires consistent effort. Recent global pass rates hover around 37-42%, emphasising that consistent preparation is essential.
In essence, the CFA Level 1 difficulty comes from covering a wide syllabus in a short period. But with a structured CFA study plan, clearing Level 1 on the first attempt is absolutely possible.
CFA Level 1 Pass Rate Trend
The CFA Institute does not make the CFA Level 1 exam easy – and the pass rate trend proves it. Over the years, Level 1 pass rates have fluctuated significantly, often reflecting changes in exam difficulty, candidate preparedness, and global economic conditions. For many aspirants, this number is more than just a statistic – it’s a reality check. Understanding the trend helps you set realistic expectations and, more importantly, prepare smarter rather than harder.
Year
Pass Rate
2022
~37%
2023
~39%
2024
~42%
2025
43%
While pass rates have improved slightly in recent years, the CFA Level 1 exam remains highly competitive. Candidates who follow a structured study plan and complete at least 300+ hours of preparation have significantly higher chances of passing.
“Pass rate improving → competition still high → preparation matters”
Now that you understand the difficulty level, let’s look at the most common mistakes candidates make.
Common Mistakes CFA Level 1 Candidates Make
If you want to avoid retaking the exam, avoid these: ❌ Ignoring Ethics. ❌ Memorising formulas without understanding where to apply them. ❌ Not practising enough. ❌ Not revising regularly. ❌ Underestimating quantitative methods. Small mistakes add up at Level 1 – so prepare smart and learn efficiently for your CFA Level 1 exam.
Month-by-Month Study Roadmap for CFA Level 1 Exams
While the roadmap and study routine differ for person-to-person, here’s a simplified guide that gives you a structured CFA study plan:
Months 1-2: Build Your Basics
Ethics fundamentals.
Quantitative Methods.
Economics basics.
Solve 20-30 questions per session.
Months 3-4: Core Technical Learning
FRA (most important).
Equity.
Fixed Income.
Corporate Issuers.
Derivatives + Alternatives basics
Month 5: Serious Practice Phase
Start timed practice sessions.
Finish 1,000-1,500 questions.
Identify weak topics and work on them.
Month 6: Mock Exam Phase
3-5 full mocks.
Review mistakes deeply.
Strengthen Ethics and FRA.
Light revision of formulas.
This roadmap ensures consistency without burnout.
📊Quick CFA Facts: According to the CFA Institute, successful candidates don’t just study consistently – they progressively shift from learning concepts to applying them through practice and mock exams. A phased approach like this, where early months focus on understanding and later months emphasise testing and revision, closely mirrors how top performers prepare for the CFA Level 1 exam.
Exam Day Checklist – What to Carry & Expect
Avoid last-minute stress – here’s what you must carry for CFA Level 1 exams:
Carry These:
Valid, unexpired international passport.
Exam confirmation email (digital copy allowed).
Approved financial calculator
TI BA II Plus
HP 12C
Allowed items:
Calculator batteries.
Water bottle (transparent, no labels).
Sweater/light jacket without pockets.
Not allowed:
Mobile phones
Smartwatches
Bags
Notes or study material
At the test centre:
Arrive at least 45-60 minutes early.
Expect security checks.
You’ll get a small locker for personal items.
After Session 1, you’ll have a mandatory break before Session 2.
This helps set the right expectations and reduces exam-day anxiety.
If you are wondering how to crack the CFA Level 1 exams and walk in confidently, follow these CFA exam tips:
Time-check from the get-go: Track your time from the start. The CFA Level 1 Exams run in two sessions. Start by scanning how many questions you have in each block and estimate how much time you can assign per question (including review).
Read carefully, answer smart: Multiple-choice doesn’t mean simple. Some questions will be wordy, with traps in the phrasing. Pause, parse the scenario, then answer – don’t rush.
Flag and move on: If you encounter a question that you’re stuck on, mark it and move. Come back later if time permits. Getting stuck on a single question for too long doesn’t just eat up your time – it throws off your entire flow. Once your momentum breaks, the pressure starts piling up.
So stay focused, stay steady: Stay calm and maintain a steady pace. Short breaks don’t help during the CFA exam – stay present. Use your natural pause between sessions to re-centre: deep breath, quickly review your time, and press on.
Final 15 minutes = review time: Think of those last 10-15 minutes as your “calm check.” Go back to the questions you marked, skim through your formulas one last time, and look out for those tiny slip-ups or errors – especially in ethics and quant, where mistakes sneak in without you realising.
When you handle your paper this way, exam day stops feeling like a fire drill and starts feeling like something you’re genuinely in control of.
Are you aiming to clear the CFA Level 1 on your first attempt? While that’s quite aspirational, it requires a structured approach. This video equips you with the tips and tricks to achieve your goals.
Is the CFA Level 1 Exam Right for You?
If you’re curious about the roles and pay packages you can target after clearing Level 1, you can also explore this detailed breakdown of the CFA salary in India to understand industry expectations and growth opportunities. You should consider pursuing CFA Level 1 if you want to build a career in:
Investment banking
Equity research
Portfolio management
Risk management
Wealth management
Asset Management
Corporate finance
Financial analysis
Valuations & Financial Modelling
Clearing CFA Level 1 Exams shows commitment – a trait that finance recruiters deeply value. It’s also ideal for:
BCom, BBA, and MBA finance students.
Working professionals who want a global credential.
Career switchers looking to enter finance.
CFA is not ideal for a career in marketing, HR, operations, or non-finance fields.
If you’re confused between CFA vs MBA and FRM, you’re not alone. Each path leads to different finance careers, and choosing the right one depends on your goals.
Factor
CFA
MBA (Finance)
FRM
Focus
Investment & Finance
Business + Management
Risk Management
Duration
2-3 years
1-2 years
1-1.5 years
Cost
Moderate
High
Moderate
Difficulty
High
Medium
High
Best For
Investment banking, equity research
Management roles, consulting
Risk analyst, banking
Global Recognition
Very High
High
High
When to Choose CFA
You want a career in investment banking, equity research, or portfolio management.
You prefer deep finance knowledge over management.
You want a globally recognised certification.
When to Choose an MBA
You want leadership, management, or consulting roles.
You prefer networking + campus placements.
You want broader career flexibility.
When to Choose FRM
You want to specialise in risk management.
You’re targeting roles in banks, credit risk, and market risk.
You enjoy quantitative and analytical work.
If your goal is core finance roles like investment banking or equity research, CFA is usually the most direct and specialised path.
The Imarticus Advantage for CFA Level 1 Exams
If you want structured preparation for the CFA program, industry guidance, and a clear CFA study plan, Imarticus Learning can make a real difference.
This guided approach not only enhances your understanding but also significantly boosts your chances of clearing the CFA Level 1 Exams on your first attempt. If you prefer structured preparation with mentorship and mock-driven learning, guided programs like Imarticus can help maintain consistency.
FAQs About CFA Level 1 Exams
If you still have doubts, these frequently asked questions about the CFA Level 1 Exams will clear things up.
What are the CFA Level 1 exam fees?
CFA Level 1 fees include a one-time enrollment fee and exam registration fee, typically ranging between $900–$1,200 depending on early or standard registration.
Who is eligible for the CFA Level 1 Exams?
Candidates must have a bachelor’s degree (or be in the final year), or 4,000 hours of work experience, or a combination of both.
Is CFA Level 1 difficult to pass?
Yes, with pass rates around 40-45%, CFA Level 1 is considered challenging and requires consistent preparation and strong conceptual clarity. If you’re learning with expert guidance, mock-driven preparation, and doubt support – like at Imarticus Learning – the entire process feels even more structured and doable.
Can I clear CFA Level 1 in 3 months?
Yes, but it requires 6-8 hours of daily focused study along with strong prior finance knowledge.
How many hours are required for CFA Level 1 preparation?
Most candidates spend around 300-350 hours preparing over 6-8 months. The hours of study required are subjective and depend on your pace of learning, previous experience, and background. Usually, most students spend 250-350 hours preparing for the CFA Level 1 exams. Dedicating 10-12 hours per day or following a routine that suits you consistently is the key to acing your exams. Programs like Imarticus Learning make this even easier with structured plans and mentor-led guidance.
Your Path to Cracking the CFA Level 1 Exams
The CFA Level 1 Exams may seem challenging. Still, with the right CFA study plan, a smart approach to the CFA Level 1 syllabus, and consistent practice under the CFA exam pattern, clearing the exam becomes absolutely achievable. Whether you’re a student, working professional, or someone switching into finance, Level 1 is your gateway into a rewarding global finance career.
With structured classes, expert guidance, and mock-driven preparation, the CFA training program at Imarticus Learning can help you build confidence, stay disciplined, and improve your chances of clearing the CFA Level 1 Exams on your very first attempt.
Your CFA journey doesn’t have to be confusing or stressful. Start right, stay consistent, and let the CFA Certification become the foundation of your global finance career.
No doubt you have heard of the Fun Facts You Didn’t Know about the CFA Exam Chartered Financial Analyst Program (CFA), the most globally recognized and respected investment management credential in the world. In this blog we answer some questions regarding what it costs, if you’re eligible, and how much time you need to put aside to give it a good shot. What is the CFA?
The CFA is a credential as well as a passport to the largest club of investment professionals in the world. Being a charter member means many regulatory agencies will offer waiver from licensing exams, graduate programs give you a waiver of the GMAT and many financial and investment-related certification organizations grant waivers from qualifying exams or continuing education requirements.
Because the CFA curriculum is incorporated into more than 300 business schools around the world, you are essentially learning what is taught in some of the best schools in the world. And the charter is often a prerequisite to many prestigious jobs in Investment Management. How does one become a CFA Charter Holder?
Here’s the thing. It’s not just the passing of an exam. You cannot actually call yourself a CFA without being a CFA Charter Holder. The CFA requires you to do 4 things before you can become a CFA charter holder.
You need to agree to follow the CFA Institute Code of Ethics and Standards of Professional Conduct. This is why Ethics and Professional Standards comprise 15 percent of the Level 1 exam.
Pass the CFA Program exams for Levels I, II, and III. Watch this space for in depth posts on Level 1, Level 2 and Level 3 exams.
Have four years of qualified work experience in investment decision-making. This means having 48 months of experience in Investment Management that can be accrued either before, during or after the exam. The work experience is not a pre-requisite for the exam itself.
Become a regular member of CFA Institute and apply for membership in a CFA member society. Watch this space on a dedicated post to becoming a member of the CFA Institute.
What Jobs does it prepare you for?
Where do people land up after they do the CFA? Well here’s the break up. A majority of them go into Investment Management, which is what the course is geared towards. 23 percent become portfolio managers, 16 percent become Research Analysts, while the rest are distributed almost equally across Risk Management, C level positions, consultants, corporate financial analysts and financial advisory. How many levels do I need to pass to get the CFA?
There are three levels and exams are held annually, biannual for Level 1.
Level I tests your knowledge of the ethical and professional standards and the exams consists of basic knowledge and comprehension questions focused on investment tools; some questions will require analysis.
Level II tests how you apply those standards to situations analysts face and emphasizes more complex analysis, along with a focus on valuing assets.
Level III tests how you apply the standards in a portfolio management and compliance context and require synthesis of all the concepts and analytical methods in a variety of applications for effective portfolio management and wealth planning.
All exams are in English and are held in June. Level 1 is also held in December. Check the CFA website for exact dates. How much does it cost?
There is a one-time enrollment fee of $450 with a two-day refund policy.
If you want to register for the December Level 1 exam, you will pay a standard fee of $860 dollars if you register by 17th August and $1260 if you register by 14th September. If you plan to do it next year, then you can pay $650 if you register early.
In total, the three levels including one-time enrollment fee works out to $2400 if you register early every time, $3030 if you register normally.
Post passing all three levels, becoming a member of the CFA charter (required for you to actually use the CFA designation) will require you to pay $275 annually to the CFA institute and your local charter.
CFA or Certified Financial Analyst is considered as a very prestigious credential when it comes to the world of finance. Those professionals who are able to clear all the levels of this exam are ushered into this charter, which consists of world-renowned finance professionals and lucrative career opportunities. It is a common belief that all those finance aspirants, who are looking to pursue CFA, are usually looking to earn big in their respective careers. While this may be the case, there are certain things that every CFA aspirant must know about. Firstly, that this examination, is really a tough nut to crack and this by no means is meant in a demotivational way. Any candidate must do a thorough research about this examination, before attempting it. This research must include the amount of time one must spend studying, as well as the various opportunities and salary trends in this field.
According to a certain statistical data of the year 2014, it was concluded that all the charter holders, or those who crack the CFA exam, usually opt for a career in Portfolio Management. This is mainly because it is considered to be the highest paying career option herein and close 22% of the applicants, chose to pursue their career in this field. While 15% of the CFA holders opt to become a Research Analyst, about 7% opt for Chief Executives, Consultants (6%), Risk Managers (5%), Corporate Financial Analysts (5%), Relationship Managers (5%) and Financial Advisers (5%). So if you are a finance aspirant looking to crack this prestigious examination, the four top positions that you should look at as career options, would be Portfolio Manager, Research Analyst, Chief Executive and Consultant. Let’s move on to the employers, who are known to hire the cream of CFA holders, across the world. These employers are most often top investment banks like JP Morgan Chase, PwC, HSBC, Bank of America Merrill Lynch, UBS, Ernst & Young, RBC, Citigroup, Morgan Stanley, Wells Fargo and so on.
Studies show that about 60% of the CFA charter holders are usually residents of the United States of America. While according to the CFA Society of Chicago USA, the median compensation, for any fresh graduates and CFA charter holders would range anything from US$215,542 annually to about $ 154,025 per annum. Whereas, on the other hand, for someone who is just a graduate and does not hold a CFA charter, the salary would be anything around or more than US$ 85,875 per annum. Apart from USA Europe also pays these charter holders handsomely, thus a CFA charter holder would earn anything between $124,000 per annum. While it is the country of Australia, that is known to pay the highest salaries for CFA holders, while in India, it is the city of Bangalore, which pays the most.
There are a number of people, especially in India, who attempt to clear this examination every year. While most of them choose to get trained professionally, from Imarticus Learning, to better their chances of entering this coveted charter.
In the world of Finance, the CFA certification or the Chartered Financial Analyst certification is a very well-known and prestigious certificate to hold. Those who are able to crack these exams, are popularly known as Charter Holders and become a part of the exclusive organizations and are able to get entry, without any prior entrance examinations. Apart from the exemplary job opportunities, there are amazing salaries that are offered to the professionals, who crack all three levels of this examination. Due to the fact that even a working professional can attempt to give this examination, as well as the considerable affordability of it, have resulted into a lot of people opting to attempt the same.
Through a CFA certification, a candidate can find a means to not only boost their management skills, but also ace investment analysis. This examination usually helps a candidate, cover industry practices, which include both ethical as well as professional standards in addition to academic theories. Anyone who is looking to take a shot at cracking the three levels of this examination has to well versed with a number of concepts like, Quantitative methods, Economics, Financial Analysis, Portfolio Management, Equity, Fixed Income, Derivatives, Alternate Investments and so on. The three levels of this examination, are devised in such a way as to inculcate the aforementioned concepts, in a better way. For a CFA holder, the gates in terms of job opportunities are wide open, for they can choose from a number of fields like research, analysis, accountancy, corporate finance, consultancy and relationship management; as the field of their expertise.
Apart from the rewarding job prospective, this exam ensures that a charter holder is able to cultivate broad knowledge in terms of investment skills as well as decision-making tendencies, up to the quality of the global financial industry. As the program and the examination, both are entirely based on finance, they encourage a candidate to shine really well through a career in Investment Banking. If and when a candidate chooses a program, to help and assist them in cracking this prestigious exam, these programs are generally dependent on extensive global practice analysis processes, which are basically dependent upon inputs, discussions, surveys as well as reviews, which are all curated from esteemed CFA charter holders.
The CFA program has already been at the receiving end of a number of accolades, including that of the best course, which goes on to provide a great amount of quality, in a profession like Investment Banking. Being a charter holder, not only opens up a million, lucrative possibilities but also ensures that the recipients are well equipped to be on a sub-par level when it comes to skills required for Investment Analysis worldwide.
Before we tackle that question, let’s perhaps try and understand why you failed in your first attempt. Did you do everything you could? Here are some of the main reasons why people fail.
They don’t study hard enough – Increase the study hours – Everyone knows you need 300 hours to study for the level 1 CFA. The CFA institute recommends you put in a minimum of 300 hours of study. You think you studied hard enough but you probably didn’t. When they mean 300 hours, they mean every minute of that is spent studying. In a two-hour study period, most people take half an hour to sink into the material and a lot of time spent on social media. Most people increase study time to 400 hours. If you take our CFA course, we provide you an additional 120 hours of study, which ensures that you put in the time.
What was your exam strategy? – The pass score for the CFA is 70%. There are varieties of exam strategies, which one did you follow? For instance, did you make sure you answered all the questions you knew to be absolutely correct? For instance if you focus on answering 50% of the questions you have built a foundation for a good score.
What materials did you rely upon? You cannot just depend on CFA material. This is why it’s important to do course like the Imarticus CFA course where we give you study material that builds upon the material you receive from CFA. The CFA books can be overwhelming in the information they provide. Secondary sources will help distill the key learning’s so that you know the fundamentals and don’t lose sight of the forest for the trees.
What topics did you focus upon? Pay attention to all topics but make sure you study ethics – not last minute, and put in extra work in fixed income and portfolio management, traditionally the areas most people falter on.
What was your study plan? This is especially important if you are working. How do you actually intend to get in 5 hours of uninterrupted study? Did you let your boss know that you couldn’t be put on any special projects? This means chalking out the next 6 months to the hour if you will and keep a 30% time buffer so that you compensate for that last minute emergency which means you lose out on study time.
Did you get enough sleep? Sleep is one of the main reasons why people fail. They attempt the exam with a tired mind. And sleep deficiency adds up. So a good nights sleep before the exam is not sufficient. This is when your study plan comes into play. Your study plan has to allow for rest over and above any other extra curricular activities. So chuck the social media, the tv and anything else. Sleep and study.
Did you practice enough? Most people buckle under the time pressure during the test. You do fine at home, at the perfect temperature, without the added pressure of delivering. You have to work under exam pressure. This is why the Imarticus CFA program is so popular. We give you 3 mock online tests and a 3000 sample question bank. But the most important is a actual simulated classroom test following exam conditions. This is key to understanding your weak areas.
CFA or Chartered Financial Analyst is a designation, which figures as one of the most prestigious credentials in the world. Essentially divided into three levels, this exam is conducted by the CFA Institute, annually or biannually based on the level of the exam. There are a lot of candidates who strive to achieve this position every year. Here’s a list of 5 things that you must know before you sit for the exam. What Works For One Doesn’t For the Other
This holds true especially for the CFA exams, as there are a lot of people attempting them together. It is a practice in a lot of firms of asking their employees to register for the same immediately after they join in. As there are a lot of people attempting the exam, there is a lot of discussion as well. As is common, strategies and study plans are shared and sometimes the same plan is followed by two people. This is something that should be avoided, as a plan might work for one, but wouldn’t for the other. There are many reasons for it, some of which may be that some candidates might have already studied some concepts, study styles would be different and so on. Only First Time Is the Charm
The exam is divided into three levels and all three of them differ in the level of difficulty. So that means if the first level of the exam might go a little easy, probably because of the candidate probably study more than what is required. This also doesn’t mean that if a person passes the first level with last minute studying, it won’t be the case with level 2. The toughest exam among the three levels is considered to be the level 2 exam by a lot of people. Giving a 100% each time and being consistent about it is what counts more. Do Not Under/Over-Estimate the CFA Institute
Although it is the CFA institute which conducts the exam, it doesn’t necessarily mean that one must follow each and every word there. It does not bode well to draw theories about the particular concepts posted on their website. So if there have been a lot of postings about a certain topic, it does not necessarily mean that the topic will be tested. At the same time, it is also not right to never consider CFA institute or the study material available there. Only One Type of Study Format Works
People are different thus different things work for different people. Similarly, different methods of study work for different people. Thus, even when it comes to study formats, some work for a certain person, while the others don’t work at all. It thus becomes very wrong to think that, only paper and pen are the two things that would work for someone. Various study formats exist, conventional like those of pen and paper and non-conventional like audio-visuals, flash-cards, anagrams, mnemonics etc. One must make use of every type of study format. Revision Is the Key to Success
Cramming till the very last minute has never been able to help anyone. It is very important, especially when it comes to CFA exams, to keep aside a certain amount of time for reviewing and polishing oneself. It is very important to solve the previous year’s papers, which are easily available. It is also important to make sure that you solve as many problems as possible. Apart from that, mock tests are also required. Imarticus Learning is a leading education institute, provides valuable training to aspiring candidates, who wish to crack the CFA exams.
The CFA conducted by the American-based CFA® Institute is one of the most renowned and powerful certificates you brandish for a lucrative career in Corporate Finance and the financial markets. Imarticus offers two programs, a classroom based 120 hour course and an online 100 hour instructor led course that includes 3 mock tests, a question bank of 3000 questions, access to discussion forums, a 24/7 learning management system that gives you access to material and mentorship to help you learn and study better and ace the CFA Level 1.
If you’re starting now, you are most likely preparing for the exams on the 5th of December which gives you around 5 months, a perfect length of time to get through the 10 modules. Here are our tips to help you study for the CFA Start NOW! – CFA study is a marathon, not a sprint and that is why you need to start today to ensure you are ready for your exam on the 5th of December. Today, in fact, is already a little late. Starting now means the pressure is off you a little, and you can allot more time to each section. 300 hours: They say you need 300-400 hours of study to pass the CFA. You already do about 120 in our classroom program or 100 online, which means the 300 you do outside the program will be pure revision, which is excellent news. To start with ensure you attend all your classes at Imarticus and do the required reading before hand. 300 hours sounds like a little but they’re actually quite a lot and the amount of material in the CFA means that when you allot an hour, that hour does not include a chai break to enjoy the monsoons or Facebook. Step off Social Media– coming back to Facebook and general social media distractions, let your family and friends know that you are preparing for the CFA and your weekends, especially if you work, will not belong to you anymore. It belongs to the books until December. In fact, we recommend getting off social media all together. Create a study plan and stick to it– The great part about doing the CFA course at Imarticus is the ability to build a study plan around it. You have six months and need to do 300 hours of revision, so plan it out by blocking out 12 hours of revision a week excluding the Imarticus coaching, which you should consider study. Also build in some time off, Diwali for instance, which can also be useful when you don’t stick to your plan. Remember that six months is a long time, so don’t try and plan every hour. Instead ensure that if you do block 4-6 pm that you start studying at 4 and finish at 6 pm. Account for breaks as well. Learn to love your Texas Instruments calculator: get familiar with the calculator because that’s all you can bring to your exam hall. Practice, practice and practice: You need to practice full timed exams to ensure that you solve problems in the allotted time frame. Apart from a question bank of 3000 questions, Imarticus holds a mock version of the real exam to give you an idea of what it will be like. This is critical to your success because most students fail because they never practice under real exam conditions. Study all the modules – Module one in our course is Ethical and professional standards. It is also the reason why so many students fail because they think it’s easy or that they can cram it at the last minute. Don’t leave anything for the last minute because a wrong answer on Ethics for instance, something you could have easily gotten right, might mean the difference between a pass and a fail. Find a mentor: Talk to someone who’s done this before and can guide you through the process. The self-study experience can be a lonely experience, which is why courses like the one at Imarticus can help you become part of a community where you can share your worries. It’s also more fun to be in the same boat together. Our mentorship program will ensure your study plan is on track and can guide you through any problem areas you might be having. Find a work – CFA balance- If you happen to work, then you need to come to an understanding with your boss, especially regarding your weekends. You have to manage expectations regarding travel and project deadlines. Don’t cram all the study into the weekend as well and try do an hour or two in the morning before you head to work, so that concepts are not forgotten.
