CFA Level 1 Study Strategy
As we have by now seen, the passing scores for the CFA Part I are somewhat low, around 37-40%. This displays that somewhat limited amount of candidates effectively complete the examination, and you actually have to create a concentrated effort to be capable of making it over and earn the desired CFA Charter. It is also known that the level of difficulty keeps increasing with every CFA level.
Usually, it is suggested to devote about 300 hours of organized study to be capable of passing the CFA Level 1 effectively. It drives without saying that those with a solid background in business (Finance, Accounting, Economics, etc.) in any of the CFA subjects might need lesser groundwork. It would aid to recall that the CFA level 1 exam has 10 topic, 18 reading sessions and 60 readings. Every study session should be studied individually, but some study sessions also overlap.
There are numerous study plans accessible to cover the CFA prospectus effectively. Though, one of the most popular methods is to work in 300 hours of reading time as a base and to allocate it over a period of 4 months previous to the examination.
Following this strategy, you will be required to devote a minimum of 12 hours every week. The most logical tactic is to stick to allocating the most hours to topics with the most weight.
CFA Institute offers sample questions to help students understand the kinds of questions that may be asked as well as the form of the questions to limit any confusion for tackling problems in the CFA level 1 exam.
There are mainly two types of questions in the CFA Level 1 examination. This includes questions where you have to use the correct mathematical equation and use it to come up with the correct answer. There are also qualitative questions that simply test a concept from the readings.
Numerous candidates considerably undervalued the study time necessary to to pass the CFA level 1 exam. It is usually known that candidates must invest around 300 to 350 hours of study prep. This might appear a lot to numerous people, however, in reality, the required hours are higher for level 2 and level 3.
Candidates frequently make the error of starting to study too late and then rush to catch up. Whereas this approach might work for several, in general, this would not work for most people. In addition, if you merely study strongly for the examination, you will probably forget most of the concepts a few months after the examination date. This will furthermore make it tougher to study for the subsequent levels since you would need to memorize the same material again instead of developing the aptitude necessary to make links between the new concepts and the level 1 concepts.
The CFA Level 1 exam is definitely not for people without a scholar background. It is intended for people already functioning in the world of Finance eager to grow their skills, professional abilities, and aptitudes for career progression. The probabilities of passing the exams are definitely not high, but applicants need to understand that without a planned and devoted effort, the outcomes might not be satisfactory. On the optimistic side, finishing the CFA Level 1 examination opens up an entire new world of growth opportunities and expands the possibility of knowledge and abilities for anyone. The candidates could then set their visions on earning the much-desired CFA Charter. It is thus of vital significance that you employ the tried and verified study approaches and use the best study notes to pass this hard exam.