CFA Preparation

The CFA exam is known to be tough, and passing it requires a serious commitment to following a structured study plan. According to the CFA Institute, the average annual pass rate over the last 10 years for the CFA Level I exam has been 44%, and the recommended study time is about 300 hours. Here are some important preparation tips for the CFA exam:Focus on the most-tested material and develop a study plan six months before you take the examTake a prep course and use third-party resources to save timeAllocate study time based on each topic's weight and practice questions regularlyBe good at taking the CFA exam, work on quick recall, and understand the questionsFamiliarize yourself with the data-backed study habits linked to passing the examStart studying early, and start rightClear your CFA plan with family and friends and understand the time commitment required to pass the examApply CFA exam concepts to real life and learn how to take the CFA exam

Preparing for the CFA (Chartered Financial Analyst) exam requires a systematic and disciplined approach. Here are some steps to help you with your preparation:Familiarize yourself with the exam structure, including the number of levels, topic areas, and the weightage assigned to each topic. Develop a comprehensive study plan that covers all the topics and allows for sufficient time for review and practice. Set realistic goals and create a schedule that works for you, taking into account your other commitments.The CFA Institute provides official curriculum materials that cover all the exam topics in detail. Make sure to study from these materials as they are comprehensive and aligned with the exam content.Practice is crucial for success in the CFA exam. Solve mock exams and practice questions to get familiar with the exam format and to assess your understanding of the topics. Review your performance and identify areas that require further study.Engage with other CFA candidates through study groups or online communities. Discussing and exchanging ideas can enhance your understanding of complex topics and provide additional support during your preparation journey.The CFA exam is concept-driven, so it's essential to develop a strong understanding of the underlying principles and theories. Avoid rote memorization and strive for a deeper comprehension of the material.Regularly review the topics you have studied to reinforce your knowledge. Create concise notes or flashcards to summarize key concepts, formulas, and important details.The CFA curriculum undergoes periodic updates. Stay informed about any changes or updates to the syllabus and adjust your study plan accordingly.Remember, the CFA exam requires dedicated effort and perseverance. It is essential to stay disciplined, motivated, and consistent in your study routine. Good luck with your CFA preparation!

Step 1: Gather all the knowledge you can get about the programme. (Don't worry, I am not going to make you work so hard. I will tell you all about it.)
Eligibility: The very first thing that you need to know is that whether you are eligible to take the exams or not.
To be eligible for the exams you must:
Have an international travel passport and
An undergraduate education: A Bachelor's (or equivalent) degree. You can be in your final year too while registering for the exam.
Or,
Work experience: Four years of professional work experience.
Or,
A combination of both: Education and professional work experience that meets the minimum of 4 years. (Part time jobs and positions do not qualify).
EXAMS: There are three levels of exams namely, level 1 level 2 and level 3. Level I CFA It focuses on Investment Tools whose learning focus lies on knowledge and comprehension. It consists of 240 multiple choice questions split among 3 hour sessions. It has no negative marking for an incorrect answer. It takes place twice a year in June and December. Level II CFA It focuses on Asset Valuation whose learning focus lies on application and analysis. It consists of 120 multiple choice questions with no negative markings. It takes place in June
Level III CFA It focuses on Portfolio Management whose learning focus lies on synthesis and evaluation. : It consists of 8-12 essay type questions that are conducted in the morning and 10 multiple choice questions that are conducted in the afternoon. The candidate is to appear for both. It takes place in June. Jobs that you can go for: It is very important to know what the end result of this certification is. It bags one of the best jobs in the world. It gives you designations such as:
Portfolio Manager
Research Analyst
Chief Level Executive
Consultant
Financial Advisory
Corporate Financial Analyst
Risk manager
Relationship Manager
Step 2: Be ready to take the exams in English. Step 3: Become a member of the CFA Institute. Enroll yourself for the CFA programme by paying a one-time enrolment fee of US $450 (INR: 28,309.70). Step 4: You have to pay a fee when you register yourself for the first level of exams. It is always better to register yourself well in time for the examinations. Keep yourself updated on the CFA Exam Dates.

CFA is a moderate level exam and you can pass it with 4-6 months of preparation.
Most important is having a proper plan and sticking to it.
Start with how many hours you have on week days. Try to study at least 1-2 hrs on week days.
You have to dedicate your weekends completely to the preparation and avoid the temptation of relaxing on those days. I would suggest minimum 6-8 hrs on weekends at least. Actually the time required will vary from person to person depending n his intellectual capability.
Make sure you use trusted resources and focus on solving more problems and not only reading the theory.
If you are using Schweser's material then make sure that you attempt at least three tests from that in real like exam situations. So keep on studying and give some tests.
Most importantly utilize your weekends properly. All the best!

1.L3 topic weights are not like L2.
2.Leaving topics is not recommended at any level. More so at L3.
3.Seen in totality, except for Ethics, there's only one topic! (Portfolio management)-a lot of synthesis of readings across study sessions is required to answer questions.
So a fixed income or risk management (Risk and derivatives) question is also colored in the portfolio context.
For whatever it is worth, the following may help.
4.Portfolio Management-Fixed income which is roughly equal to ethics (ethics not tested in AM till now, fortunately). Risk management+Derivatives may be covered more than equity or AI. Though not always.
5.Economics is often tested in the morning session and has now been specifically included as a topic, unlike earlier, and mostly has direct questions based on formulae, in AM. Together with performance evaluation/attribution/Indirect transaction costs (All Book VI) if tested and solved correctly, may prove to be high scoring compared to qualitative sections.
6.Six out of eleven questions may be directly from portfolio management.

Candidates can prepare for the CFA 2023 certification course by reading many reference materials mentioned below-Name of BooksAuthorsInvestment Banking: Valuation, Leveraged Buyouts, and Mergers & AcquisitionsPearl and Rosenbaum2021 CFA Level IKaplan SchweserStrategic Value Investing: Practical Techniques of Leading Value InvestorsStephen M. Horan, Robert R. Johnson and Thomas R. RobinsonWhen Genius Failed: The Rise and Fall of Long-Term Capital ManagementRoger LowensteinThe Cartoon Guide to StatisticsLarry Gonick and Woollcott SmithCFA Level IBhupesh AnanadThe Handbook of Fixed Income SecuritiesFrank J. FabozziNote- The information is sourced from external sites and may vary.