Level 1 Topic Order • Level 2 Topic Order • Level 3 Topic Order
There are 73 Learning Modules (LMs, or mini readings) in CFA Level 1’s 2023 curriculum across 10 topics. But should you study the topics in sequence? Or is there an optimal CFA Level 1 study order?
It’s one of the popular questions we get in the 300Hours Forum (which, by the way, you can join for free CFA advice).
There’s no right or wrong answer here. Studying the topics chronologically as outlined in the curriculum is fine, especially since Ethics readings are moved to the end.
But we thought there may be a slightly better order to study the topics for higher effectiveness. So here’s our outline of the optimal study order (and why) for 2023’s CFA Level 1 topics that could work well for your CFA Level 1 study plan.
Hope this helps you prepare for your CFA Level 1 exam – let’s dive in!
- Recommended Study Plan for CFA Level 1 Topics
- 1st: Quantitative Methods (1st part, 8-12% exam weight)
- 2nd: Financial Reporting and Analysis (13-17% exam weight)
- 3rd: Fixed Income (10-12% exam weight)
- 4th: Equity (10-12% exam weight)
- 5th: Alternative Investments (5-8% exam weight)
- 6th: Derivatives (5-8% exam weight)
- 7th: Corporate Issuers (8-12% exam weight)
- 8th: Quantitative Methods (8-12% exam weight)
- 9th: Portfolio Management (5-8% exam weight)
- 10th: Economics (8-12% exam weight)
- Lastly: Ethical and Professional Standards (15-20% exam weight)
Recommended Study Plan for CFA Level 1 Topics
For CFA Level 1’s 2023 curriculum, the flow of topics is arranged as:
- Tools → Asset Classes → Portfolio Management → Ethics
The good news is, CFA Institute has confirmed that the design of the modules in each study session do not assume that the candidate approaches the study sessions in any particular order.
With these in mind, we have developed our own study plan to ensure candidates have sufficient time to:
- master the difficult and high-weighted topics,
- balance the need to stay motivated, alternating between the tougher and easier topics, whilst
- being mindful of the sensible linkages between topics to maximize absorption.
In short, this led me to the following suggested CFA Level 1 study order for 2023’s curriculum:
|CFA Level 1 Topic Study Order||2023’s Curriculum |
(73 Learning Modules in total)
|1) Quantitative Methods (first part)||Topic 1: LM 1-3|
|2) Financial Reporting & Analysis (FRA)||Topic 3: LM 1-12|
|3) Fixed Income||Topic 6: LM 42-47|
|4) Equity||Topic 5: LM 4-6 first, then 1-3|
|5) Alternative Investments||Topic 8: LM 1-3|
|6) Derivatives||Topic 7: LM 1-10|
|7) Corporate Issuers||Topic 4: LM 1-8|
|8) Quantitative Methods (second part)||Topic 1: LM 4-7|
|9) Portfolio Management||Topic 9: LM 1-8|
|10) Economics||Topic 2: LM 1-8|
|11) Ethics||Topic 10: LM 1-5|
1st: Quantitative Methods (1st part, 8-12% exam weight)
We approach Quantitative Methods in 2 parts.
In this first part, Learning Module (LM) 1-3 forms the absolute foundation of the CFA Level 1 syllabus. Covering concepts such as the Time Value of Money (TVM), Present & Future Values, and Annuities. A solid understanding of these topics will pay dividends later in areas such as Asset Valuation and Portfolio Management.
During the course of this study session, you will also be expected to get to grips with the official CFA calculator, the Texas Instruments BA II Plus. Check out this BA II Plus calculator guide for more tips.
2nd: Financial Reporting and Analysis (13-17% exam weight)
Covering the interactions of the Balance Sheet, the Income Statement and the Cash Flow Statement, LM 3-5 are particularly useful if you are unfamiliar with the basics of accounting.
You will be focusing on the specific categories of assets and liabilities that are typically susceptible to alternative accounting policies and estimates.
As an analyst, the ability to interpret company accounts and economic capacity is vital so this area is a significant piece of your learning. Topics covered here include: Inventory Costing (LIFO/FIFO), Depreciation, Intangible Assets, Deferred Taxes, Leasing and Accounting for Bonds.
3rd: Fixed Income (10-12% exam weight)
Now we will look at the block of Asset Classes readings, which I recommend starting with Fixed Income first (LM 1-6).
Having mastered the concept of TVM in Quantitative Methods, you will be well positioned to quickly understand the topics covered in this session.
4th: Equity (10-12% exam weight)
Next is Equity, which we recommend looking at LM 4-6 first, then 1-3.
LM 1-3 focuses on the analysis, valuation and characteristics of equity securities. Once again your knowledge of TVM will prove beneficial as you can move quickly from an understanding of equity securities to valuing the equity itself.
With a clear understanding of equity securities from the previous readings, you should be able to move through LM 1-3 with relative ease.
5th: Alternative Investments (5-8% exam weight)
This is relatively small reading that can be easily overlooked – but do so at your peril.
In 2023, this reading is broken down into bite-sized Learning Modules (LMs) which can be done in an evening of study.
Covering topics such as Real Estate and Private Equity, this is a relatively straight forward topic area.
It’s a topic you cannot skip, since it has relatively high topic weight given the number of reading.
6th: Derivatives (5-8% exam weight)
Building the conceptual framework for the understanding of basic Derivative Securities, Forwards, Future Options and Swaps, these readings will ensure you are competent in your comprehension of these different financial instruments, which form a foundation for future levels.
7th: Corporate Issuers (8-12% exam weight)
While there is some overlap in this study session with the accounting section of the syllabus, notably Financial Analysis Techniques, as well Net Present Value and Internal Rates of Return in Quantitative Methods, topics such as Capital Structure, Cost of Capital and Measures of Leverage are the foundations of this study session.
8th: Quantitative Methods (8-12% exam weight)
Jumping back into the world of Quantitative Methods (second part), LM 4-7 are often viewed as one of the more difficult areas of the syllabus to master.
Introducing concepts such as sampling and estimation as well as hypothesis, you should be aware that perceived difficulty of these topics may slow the pace of your studies. You should therefore build in adequate time to tackle this session.
9th: Portfolio Management (5-8% exam weight)
Portfolio planning and the construction process are critical topics in this study session.
In addition, the area of diversification is introduced, and statistical concepts such as standard deviation covered previously are applied in the context of Portfolio Management.
10th: Economics (8-12% exam weight)
Economics covers three main areas and takes time to get through:
- Microeconomic and Macroeconomic Analysis (LM 1-4): Important particularly if you are new to the world of Economics, these readings introduce the basic concept of supply and demand. Once you have grasped this, you can expand your knowledge to cover the output and costs incurred by firms – fixed, variable and marginal costs. Covering basic macroeconomic concepts this study session begins with the analysis of aggregate demand, supply and output combined with examination of economic growth. Moving onto business cycles in different economies, this session concludes with a look at the fiscal and monetary policy as a backdrop for mitigating economic activity.
- Monetary and Fiscal Policy, Geopolitics, International Trade and Currency Exchange Rates (LM 5-8): This study session explains the flow of goods and services, physical and financial capital across countries. It also provides an overview of currency market fundamentals and introduction to geopolitics.
Lastly: Ethical and Professional Standards (15-20% exam weight)
This is a crucial topic which isn’t easy, so don’t leave it to the last week. That’s too late.
Ideally, have a review early in your studies and then hit it hard in the final month. Make sure you understand the rule and regulations that make up the Ethics syllabus – scenarios in the CFA curriculum will allow you to put these conventions into a practical context. The questions will be scenario-based so make sure you can apply the rules to hypothetical situations.
If you have any questions about the CFA Level 1 study order, comment below!
P.S – these resources may be helpful:
- Get 300Hours’ upgraded Study Planner for free 
- Refer to the latest 2023 CFA curriculum & topic weight changes for all 3 Levels
- CFA Level 1 – The Top 10 Tips from Previous CFA Candidates & Charterholders
- CFA Level 1: How to Prepare & Pass CFA in 18 Months
- CFA Level 1 Cheat Sheets and Free Resources
13 thoughts on “What Is The Best CFA Level 1 Study Order? ”
I don’t understand how the LMs are numbered; in the contents pages of the CFA books, for each big topic, it starts with LM1, it doesn’t continue up to LM 73?
It isn’t clearcut at the moment Florencia. We think CFA Institute is in the midst of transitioning to LMs, so some chapters have LMs, but others haven’t been broken down into smaller Learning Modules as yet. Best to refer to the titles of the reading/LMs for now.
What about the best order for 2023?
with the registration for the May 2022 Level 1 exam, I have access to the official CFA Program Curriculum, Volume 1-6.
Is learning based on that sufficient, or is it advisable to also buy the Kaplan Schweser textbooks?
Thanks for any help!
We would suggest getting some third-party provider materials. To help you make your decision on whether to get third-party provider materials, we’ve written a guide: https://300hours.com/third-party-cfa-prep-books/
Hi, I’ve been studying with the 2020 version (study sessions) from the cfa website while I was waiting for the results of the CFA scholarship. Would I need to study again with the newest version after the registration?
I would recommend studying with the new curriculum. The 2020 curriculum is really the 2019 curriculum (CFA Institute froze it for 2020 because of the pandemic) so at this point the 2021 curriculum would have incorporated 2 years worth of changes. Here’s our guide to the curriculum changes introduced. Good luck!
Where can i find the “Readings”? which text book is this article referring to?
The official CFA curriculum – the curriculum text that you get in soft copy when you register for the CFA exam.
Is there any update to 2022? Sorry kind of lost.
Yes, the curriculum changes every year – the summary of changes from 2021 to 2022 can be found here. However our recommended order of study for 2022 remains unchanged.
Can you please update your proposed order for 2022 L1? (considering some readings have been added/ some deleted).
Hi Roberto, we plan to update the proposed order in a few months time as there are still 2021 L1 candidates. However, judging from the overall minor changes for L1 2022’s syllabus, we suspect the recommended topic study order wouldn’t change much, if at all!