In this article, Shiksha.com has presented the intricacies of each CFA level and explored the difficulty level, exam pattern and syllabus of the CFA program.
How Hard is the CFA Exam?
The CFA program is renowned for its rigorous examination process and challenging nature. The CFA exam assesses the candidate’s proficiency in the field of finance and investment management. The overall average CFA pass rate of all three levels of the exam is very low.
Spanning three levels, the CFA exam is considered to be one of the most difficult and time-intensive exams. As each CFA level has a unique exam pattern and syllabus, CFA aspirants face a daunting yet rewarding journey. While Level 1 of the CFA exam focuses on building a foundation in finance and investment principles, Level 2 and 3 emphasize application, analysis and integration of knowledge. In this article, Shiksha.com presents the intricacies of each CFA level and explores the difficulty level, exam pattern, and syllabus of the CFA program.
Explore popular CFA colleges for you
Want better recommendations?
There is a 90% more chance of getting best college recommendations by sharing preferences.CFA Passing Score
The average CFA pass rate is only 45% of all three levels combined. This means that less than 50% of the candidates who appear for the CFA exam get through all three levels of the CFA program and earn the Chartered Financial Analyst designation. The CFA exam requires discipline and long hours of study. In simple words, to pass the CFA exam one needs to study hard, practice and take the exam.
Q: How tough is the CFA exam? What are important preparation tips for the CFA exam?
Q: Can I self-study for the CFA exam?
Yes, of course you can self-study for the CFA exam. Many students prefer to choose this option for preparation because of the flexibility it offers. The CFA insitute provides an official curriculum for each level of the exam. It serves as a comprehensive guide and primary source of study material. You can follow the curriculum independently and study at your own pace.
Besides the CFA Institute curriculum, there are number of other resources available for the CFA study material. These may include guides, sample papers, video lectures, tutorials, etc. You can utilize these resources to supplement your self study efforts and reinforce your understanding of the important topics of the CFA syllabus.
Create an effective study plan that outlines your study schedule, goals and progress. This will help you stay organised and improve time management. You can also engage with online forums and communities and various social media groups dedicated to CFA preparation. These platforms provide the opportunity to connect with fellow candidates, seek clarification, share insights and access additional study resources.
While self-studying is a viable option, keep in mind that the CFA exams are rigorous and the material can be complex. Ensure that you allocate sufficient time, maintain discipline and monitor your progress regularly.
Q: What is the mode of CFA exam?
The CFA (Chartered Financial Analyst) exams are conducted in a computer-based testing (CBT) format. The transition from paper-based exams to computer-based exams was implemented by CFA Institute to provide a more efficient and secure testing experience for candidates.
Under the CBT format, candidates take the exams on a computer at designated testing centers. The exams are administered over multiple sessions, with each session focusing on specific topics. The CFA Level I exam consists of multiple-choice questions, while the Level II and Level III exams include item-set questions (also known as vignettes) and constructed response (essay) questions.
The CBT format offers several advantages, such as immediate exam results, standardized navigation tools, the ability to mark and review questions, and an enhanced exam security system. Additionally, candidates have the flexibility to choose their preferred exam date within the available testing window.
It's important to note that while the CFA exams are computer-based, they still maintain the same level of rigor and depth in assessing candidates' knowledge and skills in finance and investment management.
The CFA exam result has a Minimum Passing Score (MPS) assigned for each level of the CFA exam. Students are not awarded numerical scores but when receiving the CFA exam result, their result mentions how they performed in each topic area which is presented in a percentage range.
Also Read: When is the CFA exam?
How Hard is The CFA Level 1 Exam?
Level 1 of the CFA exam usually has the lowest pass rate as compared to the other two levels. This could imply that Level 1 is usually the most difficult level. The Level 1 CFA exam can be the most comprehensive exam which requires a lot of discipline. The CFA Level 1 pass rate is 41% on average.
CFA Level 1 serves as the introduction to the CFA program and covers a broad spectrum of the fundamental concepts across the ten topic areas of the CFA syllabus. The toughest topic of the Level 1 curriculum can vary for each student appearing for the exam. The most heavily weighted topic in the CFA exam is Fixed Income, Derivative Investments and Financial Reporting and Analysis. No matter what is the background of the candidate, each topic of the CFA Level 1 exam can be challenging if one is ill-prepared.
Q: Which level of CFA is the hardest?
The Level 3 CFA Exam is considered by many CFA charterholders as the most challenging due to the amount of time and consideration required to successfully complete the constructed responses. Only about 56% of CFA candidates pass the exam, despite the fact that the Level 3 CFA Exam typically has the highest pass rates of any CFA Exam.
Q: What are the affordable CFA colleges in India?
It is estimated that joining CFA colleges in India can be affordable as most of the colleges have a total tuition fee of less than INR 1 lakh. Listed below are some of the colleges along with their total tuition fees:
| Low-cost Colleges | Total Tuition Fee |
|---|---|
| IMS ProSchool, Pune | INR 20,000 - INR 40,000 |
| IMS Proschool, Chennai | INR 20,000 - INR 40,000 |
| IMS Proschool, Navi Mumbai | INR 20,000 - INR 40,000 |
| IMS Proschool, Andheri West | INR 32,000 - INR 40,000 |
| IIKMFE Financial Education | INR 70,000 |
Q: Which is the easiest pathway in CFA exam Level 3?
No pathway will be easier than the other. Each pathway is designed in a way that they are at par with each other. This does not mean that the CFA pass rate will be also be the same between each as many factors influence pass rate such as quality of the cohort, mix of the cohort, difficulty of the given set of questions in a given window, demographic factors, etc.
Q: What is the weightage of the CFA Level I exam?
The Level I exam covers a broad range of topics, and the weightings can vary slightly from one exam to another. The approximate weightings were as follows:
- Ethics and Professional Standards: 15%
- Quantitative Methods: 10%
- Economics: 10%
- Financial Reporting and Analysis: 15%
- Corporate Finance: 10%
- Equity Investments: 11%
- Fixed Income: 10%
- Derivatives: 6%
- Alternative Investments: 6%
- Portfolio Management and Wealth Planning: 6%
- Quantitative Review: 1%
Q: What is a "passing score" for the CFA exam?
The "passing score" for the CFA (Chartered Financial Analyst) exam is the Minimum Passing Score (MPS), which is set by the CFA Institute Board of Governors after each exam. The purpose of this approach is to ensure fairness to candidates across administrations, as the difficulty of each exam is taken into account when setting the MPS. The MPS is not made public, and only the candidates who passed the exam will receive an email with their results.
It's important to note that the CFA Institute does not release individual candidate scores or detailed exam scores and responses to exam questions. The results are only available online for approximately one year after the exam date, and candidates who do not pass the exam will be given a detailed summary of their performance.
Also Read: What to Expect of Level 1 CFA Exam
CFA Level 2 Difficulty
The CFA Level 2 syllabus is the same as the previous level. The weightage of the topics is also more or less similar. Hence, the candidates can keep up with the same study routine. As recommended by experts, candidates must dedicate a minimum of 300 study hours in order to pass the CFA exam.
CFA Level 2 exam is widely considered to be the most difficult level of the CFA program. CFA level 2 consists of vignettes and accompanying multiple-choice questions. This is a major change in the CFA exam pattern for Level 2. CFA level 2 delves deeper into the application and analysis of financial concepts and investment principles. It builds upon the foundation established in the Level 1 curriculum. This level requires candidates to analyze complex scenarios and apply critical thinking skills.
Also Read: What to Expect of Level 2 CFA Exam
CFA Level 3 Difficulty
Candidates need to pass Levels 1 and 2 to reach Level 3 of the CFA exam. Level 3 of the CFA exam requires the candidates to master time management. The average pass rate of Level 3 is 48% and is considered one of the easiest levels of the CFA program. This level has a new question format called the ‘constructive response’. These are essay-type questions. The Portfolio and Wealth Management topic is weighted 35-40% of the total exam so candidates should expect to demonstrate their expert writing and judgment skills when answering questions from this topic. This level of the CFA exam has only 7 topics and topics such as Quantitative Methods, Corporate Issuers, Ethical and Professional Standards and Financial Statement Analysis are eliminated. Additionally, the integration of ethics and professional standards throughout the exam requires candidates to uphold the highest ethical standards in their responses.
Hence, the transition from multiple-choice questions in Level 1 to item-set questions in Levels 2 and 3 reflects the shift towards assessing candidates' ability to analyze complex scenarios and make informed decisions. Additionally, the inclusion of constructed response questions in Level 3 adds another layer of complexity, testing candidates' written communication skills and ability to articulate their ideas effectively.
Also Read:
CFA Preparation Tips
In order to effectively prepare for the CFA exam and pass all three levels of the exam, students should diligently follow the 300 study hours rule. Given below are a few CFA preparation tips to ace the exam:
Know the Syllabus: It is important to be thorough with the CFA exam syllabus. Using the curriculum provided by the CFA Institute is highly recommended. The CFA curriculum provided by the institute offers comprehensive coverage of the topic areas under each CFA level and at the same time provides practice questions and examples to reinforce learning.
Structure Study Plan: It is essential to develop a study plan which outlines the students’ study routines leading up to the exam date. Allocate specific time slots for each topic area based on its weightage. A well-structured plan will help the students cover all the topics whilst staying on track with CFA preparation.
Practice: There is no alternative to practising what you have studied. Students should practice solving as many practice questions and CFA mock exams as possible. Practice questions will help the candidates assess their understanding of the CFA syllabus, identify areas of weakness, and improve their time management skills. Additionally, taking mock exams simulates the exam-day experience and helps the students gauge their preparedness.
Focus on Ethics and Professional Standards: Dedicate extra time to studying the Ethics and Professional Standards portion of the curriculum. Ethics is a significant component of the CFA exams and requires thorough understanding and adherence to the CFA Institute's Code of Ethics and Standards of Professional Conduct. Focus on understanding the principles and applying them to real-world scenarios.
Read More:
With over 7 years of editorial experience, Saumya has been a writer at Shiksha for over four years. With a bachelor's degree in English literature from Delhi University, she loves to write. A true Delhiite and her l... Read Full Bio
News & Updates
Explore Other Exams
Jul '22 | DAVV CET 2022 Registration |
1 Dec '24 - 31 Jan '25 | ICSI CS Executive June 2025 Re... |
1 Feb '25 - 31 May '25 | ICSI CS Executive Dec 2025 Reg... |
11 Aug '24 - 31 Jan '25 | CMA Inter Admission Form Submi... |
21 Feb '25 | CMA (Inter) Dec 2024 Result De... |
Aug '24 | LUACMAT 2024 Counselling |
Jul '24 | Download LUACMAT Admit Card |
26 Dec '24 | CA Final Nov 2024 Result |
13 Nov '24 | CA Final November 2024 Group I... |
1 Dec '24 - 31 Jan '25 | ICSI CS Professional Registrat... |
1 Feb '25 - 31 May '25 | ICSI CS Professional Registrat... |
Student Forum
Anything you would want to ask experts?Answered 2 months ago
Here are some practical tips to help you perform your best on the CFA exam.
- Financial Statement Analysis: Questions on this topic are based on International Financial Reporting Standards (IFRS) unless otherwise noted. If a question references U.S. GAAP, this will be explicitly stated.
- No penalty for g
A
Contributor-Level 10
Answered 2 months ago
Follow the steps mentioned below to learn how to fill out the CFA application form
- Visit the official website of the CFA institute
- Click on the application link or copy https://login.cfainstitute.org/LoginApplication.
- Create a login account with the candidate’s email ID.
- The candidate will be asked to e
A
Contributor-Level 10
Answered 2 months ago
CFA Charter Holders have the distinct advantage of applying their skills in several professional roles. They can work in areas like wealth management, hedge funds, fixed income, insurance and equity research.
A
Contributor-Level 10
Can you share some tips to prepare for CFA exam?