Preparation for all three levels of the Chartered Financial Analyst (CFA) exams require a serious commitment to following a structured study plan. According to the CFA Institute, the average annual pass rate for the last 10 years for the CFA Level I exam is 42%. This statistic shows that only dedicated candidates are likely to pass the exam, so be prepared to make the necessary sacrifices and put in the required effort.
- Passing the CFA Level 1 exam, which has a 42% pass rate over the last decade, requires following a solid study plan.
- Successful Level 1 candidates spend roughly 300 hours prepping for the exam.
- The best strategy is to leave at least 4 months (approximately 17 weeks) to finish all the reading material.
- Don't neglect end-of-chapter questions, however, which will help reveal weak points.
- Allow four weeks prior to the exam date to review questions and have practice sessions, while also setting aside at least one day to simulate exam conditions at home.
Your biggest investment in the CFA is your time, so spend it efficiently. According to the CFA Institute, successful candidates on average report that they spent about 323 hours preparing for the CFA exam in total.
The required preparation time can be greater for those with a poor background in the subject matter and less for those who have a strong background in the subjects that the CFA curriculum covers. As a guide for a study plan, let's use this estimate of 323 hours of reading and practice hours as a benchmark.
Pass Your CFA Exams on the First Try
The CFA Level I exam covers 10 topics, 19 study sessions, and 57 readings. Each subject carries a different weight in the exam. A good way to manage your study time is by allocating study time based on each topic's weight. The table below summarizes the distribution of 323 hours of reading on the different exam topic areas.
On average, it's best to leave at least four months for readings and leave the last month for revision and practicing. If you read two hours per day on weekdays and eight hours on the weekends, it will take about 17 weeks (four months) to complete all of the readings.
Weekends and non-working days are the best time to study for the CFA. During the week, you will likely not have time for practice questions, in addition to end-of-chapter questions. Therefore, plan to spend an additional two to four hours during the weekend on practice questions. Do not forget—the more you practice, the higher your chances of being successful on the exam.
End of the Chapter Questions
Do not forget end-of-the-chapter questions and always write down your results to track your progress. End-of-chapter questions will give you an overview of what areas are tested on the exam, so you can be more focused on these areas. Additionally, these questions will reveal the weaker areas that you must focus on to improve.
The following table summarizes how to allocate best your study time for the various CFA exam topics if you were to give yourself about 323 hours and four months (120 days) to study. Use this table as a benchmark and customize your study routine to suit your circumstances.
|Topic Area||Weight||Hours based on 323-Hour schedule||Days to allocate|
|Ethical and Professional Standards||15–20%||54||20 days|
|Quantitative Methods||8–12%||31||12 days|
|Financial Reporting and Analysis||13–17%||46||17 days|
|Corporate Finance||8–12%||31||11 days|
|Portfolio Management||5–8%||20||8 days|
|Equity Investments||10–12%||35||12 days|
|Fixed Income||10–12%||35||12 days|
|Alternative Investments||5–8%||20||8 days|
The Last Four Weeks
After decades of paper-based exams, the CFA exams have recently changed to computer-based as of January 2021. Beginning in 2022, the level I exam is offered in February, May, August, and November. The level II exam will be offered in February and August, and the level III in May and November.
Taking these dates into account, allow yourself four weeks prior to the exam date to review questions and have practice sessions. During this period, you should practice more intensively than in previous periods. The CFA Institute will give you mock exams.
It's recommended that you set aside at least one day to simulate exam conditions at home with the mock test. Two 2.25-hour sessions with an optional break in between are advised, to reflect the conditions of the new computer exam. The mock exam will help you to be well-prepared for the exam physiologically.
It would also be worthwhile to take a two to four-week study leave from work during the final phase of your preparation.
The Bottom Line
The key to preparing for the CFA Level 1 exam is to study in a structured way over a period of at least 323 hours. Hopefully, after studying in a structured way for the exam, you won't have any issuing passing it.
CFA Institute. "1963 - 2021 Candidate Examination Results." Accessed July 16, 2021.
CFA Institute. "June 2019 CFA Program Candidate Survey." Accessed July 16, 2021.
CFA Institute. "CFA® Program Study Sessions." Accessed July 16, 2021.
CFA Institute. "CFA Exam Updates." Accessed July 16, 2021.
CFA Institute. "CFA® Program Mock Exam and Practice Questions." Accessed July 16, 2021.
CFA Institute. "Computer-Based Exam Information." Accessed July 16, 2021.