You're not going to pass - especially if you're also working full time - unless you devise a proper revision plan. CFA blog site Hours advises hours of uninterrupted study over a week period. If you're looking for a guide to CFA study, we have one here. Is it really possible to work put in hours of study time per week if you're also putting in hour weeks in a bank? Not really. One seasoned fund of funds analyst told us she didn't take the CFA because it wasn't mandatory when she was a junior, but that she wouldn't have had time anyway: "I was working 14 hour days.
The closer you get to the exam, the more time you should be spending on practice questions. Mock tests under timed conditions are essential for passing the CFA. Find out what you don't know, learn it, and test yourself again. Most people fail the CFA exams. If you're trying to pass all three and to become a CFA Charterholder, a failure is almost inevitable. It's a rite of passage. You could do the same - if you're prepared to give up 4, hours of your existence.
One Charterholder who passed all three exams first time, admittedly , says failing is actually an advantage in life.
This helps in a structurally changing environment like finance. Academic studies show that four or more days of partial sleep deprivation involving less than seven hours sleep per night will effect your 'neurobehavioural function. None of this happens if you spend at least eight hours in bed every night.
As ever, there are exceptions. Adrenaline carried me," says one CFA exam taker. You have to want to pass the CFA exams. You have to feel they're worth it. The bad news is that Level I is becoming a necessary condition for some finance roles, but this doesn't mean it's sufficient. You'd better hope they're ok with this. Should I treat all topics equally or are there any topics of special significance? What are the things I should know about a topic when I start to study it?
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Our aim is to leave you with only the questions necessary to let you find the smart way to deal with the issue. This is how the topics are sequenced in your curriculum. Your goal: Being a moral person can help but is not enough! You need to learn to interpret investment situations, diagnose ethical challenges and be able to properly react to them. Key terms: integrity, responsibilities towards clients and the employer, diligence, loyalty, prudence, due care, mosaic theory, Investment Policy Statement. The candidate should be able to interpret the results of a regression, time-series analysis, or simulation.
Your goal: Surely regression or time-series analysis take the lead here. Your goal: Explore economy to find out how its elements work together. It would be important to gain an understanding of the subject-wise organization of exam. The four knowledge modules of CFA include ethics and professional standards, investment tools, asset classes and portfolio management and wealth planning. Here we are providing a tabular representation of the knowledge areas along with their specific weightage for Level I exam.
Next, we provide you an overview of all the 10 knowledge areas covered in CFA Level 1. This should help participants gain an insight into the nature of topics as well as the best strategy to be adopted for successfully covering the CFA Curriculum.
This is one of the most important areas of study in CFA as the certification program is dedicated to the promotion of universal professional ethics. This is evident in subject weightage as well where ethics is one area which receives comparative weightage in all 3 CFA Levels. This subject covers code of ethics, professional standards and Global Investment Professional Standards GIPS as larger part of the ethics aspect as applicable to the financial industry.
Some of the problems addressed include agency problems in the context of agency-principal relationship.
This section covers the fundamentals of micro as well as macroeconomics with its primary focus on the latter. It goes without saying that those with an economics background generally tend to do well with macroeconomics and makes it less challenging to assimilate all the information presented with the help of graphical presentations, as is the standard method. This exam tests the knowledge of financial ratios and financial statements commonly employed for the purpose of financial analysis.
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Along with this, one should be well-conversant in the concepts of revenue recognition, accounts receivables and inventory analysis along with taxes and long-term assets. This section is focused on quantitative analysis and mathematically-oriented approaches to address complex financial issues which make this knowledge area of such great value. Some of the most important areas covered in this section include performance measurement, time value of money, statistics and probability basics, sampling and hypothesis testing along with correlation and linear regression analysis.
A study of these concepts provides some highly useful tools and techniques for the knowledge areas of fixed income, equities and portfolio management. This section includes forms of investment not covered under other knowledge areas of CFA. This includes real estate funds, venture capital , hedge funds and commodities. There is a special focus on commodities so it would be helpful for participants to have an in-depth awareness of concepts related to trading in commodities.
10 Topics, One Body of Knowledge
There could be seven or eight conceptually-oriented questions from this section, some of them specifically related to commodities. Although this section is short on weightage in CFA Level I, but with proper effort, these sections could be mastered with comparative ease. Derivatives are complex financial instruments and this section deals with them specifically, including the fundamentals of futures, forwards, options, swaps and hedging techniques usually employed.
Most of the questions could be related to valuation and analysis of companies. This section covers fixed income markets and instruments and their pricing techniques. This section deals with fundamental principles of portfolio management and introduces some key concepts including Modern Portfolio Theory and Capital Asset Pricing Model.
CFA Level 1 Study Plan, Topics, Pass Rates & Tips
CFA Level I Exam is 6-hour total duration, divided into morning and afternoon sessions of 3-hour duration each. Each of the sessions has multiple choice questions comprising a total of questions in both the sessions. It should be kept in mind that three choices are provided for each of the questions and most of the questions are unrelated to each other.