Preparation tips for CFA exams

CFA exams are one of the toughest exams and considering the data from the last 10 years shows that only 42% of the candidates manage to pass all the three levels of the exam. This shows that only those candidates who take the preparations seriously and remain committed to the preparation process can succeed in the CFA charter exams. Apart from studying rigorously, it is important to schedule the timetable efficiently as the biggest investment that a candidate can do for clearing the CFA charter is the time. So, it is very important to utilize the preparation time effectually and with dedication. The CFA Institute reports that successful candidates spend on an average more than 300 hours in cfa level 1 prep. So, if you are appearing for the CFA exams you know how much dedication and commitment are required from your end. Most candidates from the finance backgrounds want to have the perks of a CFA Charater’s career but what lies behind those attractive salary packages are months of hard work and engagement.

Materials for preparation: 

The level 1 exam covers 10 topics with each topic with a different weightage of marks. However, in the level 1 course, most of the topics are just introduced, and detailed learning is included in Levels II and III. The best way to prepare is to devote time to every topic and start preparing at least nine months before the exams. It is always better to give time and have patience while preparing to help you clear the levels persistently. If a routine is to be followed then it is best to keep the first few months for reading and the last few months for revision and practice. Try to adjust at least one to two hours daily on weekdays for studying and utilize the weekends to focus on stressed or weak areas and practice the questions. Remember the key to success is the more you practice the more the chances of success. Most importantly, never shy away from taking help for the preparations, you can look for cfa preparation course price and get yourself enrolled with a course that will guide you with materials and preparation tips. Your prep routine is what will help you complete the curriculum before the exam and so giving your 100% during the preparation period is very important.

Curriculum for Level 1:

The topics in the CFA exams are regularly updated based on the contemporary tools and structures used in the investment analysis and the most recent topics cover the following: Ethical and Professional Standards, Quantitative Methods, Economy, Financial statement Analysis, Corporate Issuers, Equity Investments, Fixed Income, Derivatives, Alternative Investments, Portfolio Management and Wealth Planning. The marks allotted to each topic vary from one another and the topics with the most weightage are Ethical and Professional Standards, Financial statement Analysis, Equity Investments, and Fixed Income, so it is recommended to be well-prepared in these topics to clear the cfa level 1. There are many routines available that state how much time you should allocate to each topic but it is better that rather than preparing based on the prep routines of others you have your customized routine that stresses your strong and weak topics. Always remember that preparing for cfa level 1 prep is crucial and it takes significant effort from your end.

Recommended Breakdown for preparation:

By now you know how important the preparation for the cfa exam really is and the kind of effort you need to put in to make it work. However, if there must be a breakdown of the preparation process then make sure you Prepare well, Practice Well and then Perform well. Basically, the key to the success of CFA exams is prepare-practice -to perform and all these steps require full dedication and commitment. The preparation period should include studying, reading, and listening to lectures to absorb the knowledge and information. The practice period is the most effective part of the preparation as this helps to know your core strength and weakness points in the preparation. It is suggested that a candidate appearing for the cfa exams should utilize about 50% of the time in practice.

Debriefing Strategy:

Practicing for the exams helps you to set a strategy for the final day and also lets you debrief on every question you attempted. Make sure that you rethink the answers where you made a wild guess and if even the guess was correct it is important to mark the portion from where the question was placed and work on that topic more efficiently. In case, you stumbled on a calculation make sure you practice more of the similar types. This debriefing session with yourself prepares you better for the final exam.

Key takeaways:

 The preparation for CFA exams has demanded a substantial amount of your time and effort and you have undergone a lot of sacrifices for the same, so it is important that all these efforts are not wasted. Your preparation should include a plausible study plan with more than 300 hours of study time. Make sure you attempt the end-of-chapter questions to know your potential and preparation. Additionally, it is recommended to enroll in a course with a reasonable cfa preparation course price.

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