So you’ve finally registered for the CFA exams as a Level 1 candidate. Welcome!
Facing the first challenge of your CFA journey can be overwhelming. But you are not alone, because we are here to guide you on what you should do in your CFA Level 1 preparation and help you pass.
Here are our top 10 CFA Level 1 tips – a set of golden rules distilled from thousands of experienced candidates and CFA charterholders – that every Level 1 candidate should know.
Aim to start studying about 5-6 months before exam day: For example, I generally recommend starting in May if you’re taking the November exams.
Ease into it and slowly ramp up – remember that you’re in for 300 hours of study, that’s 11.5 hours of study time per week over 6 months. Don’t jump in all guns blazing or you’ll burn out long before the exam arrives. This however is just a recommendation – time needed varies depending on your background, especially in Level 1. If the material is less familiar to you, start earlier. If you think you’re hardcore/smart/already-know-all-this, start later at your own risk.
Have a study plan – use our upgraded, free CFA study plan that more than 50,000 of our readers have used effectively.
Consider third party resources to save time – Do take the time to look at additional study materials, especially if you are planning to start by reading the CFA Institute syllabus. I would advise starting with a more summarized material and utilize the CFA Institute curriculum for their practice questions and further clarification (if needed).
Understand the time commitment required to pass this exam: Yes, I’m talking about you yourself. This exam will consume copious amounts of your time, aside from your usual life commitments. It is pretty hard to balance studies and expect the rest of your life to continue as usual.
Understand that you will be stressed, tired and cranky: Especially as the exam approaches. And this means sometimes you won’t be at your best around your other life commitments.
Communicate these challenges to everyone important in your life:
The material in CFA Level 1 is not difficult to understand, but the difficulty is in the sheer volume of the material, especially for those new to finance.
Some guides may tell you to target 250 hours, but on average this will not be enough. In previous CFA Institute candidate surveys, a typical Level 1 candidate spent an average of 285-300 hours to prepare for Level 1 exams.
In our experience, 300 hours is a good amount of time to sufficiently cover the Level 1 curriculum and complete sufficient practice exams.
That said, 300 hours is probably a minimum number as this obviously varies across levels and background. But the message could not be clearer – do not underestimate the exam. So make 300 hours your target.
Skipping Ethics is a common mistake among Level 1 candidates, which is understandable after attempting to read the CFA curriculum on Ethics for the first time.
In fact, skipping Ethics is NOT an option for several reasons:
If the Ethics reading in CFA Institute curriculum is too dry, do invest in third party study material to get through this, but definitely don’t discount it!
Final Ethics pro tip – save this reading for last, as we find this is the optimal study order for CFA Level 1.
Your calculator is your friend.
Most study materials include a good guide on how to use a particular type of calculator (Texas Instruments BA II Plus is most popular), so study that at the first opportunity in your notes revision.
Also, remember to try and bring two identical ones to the exam in case your first one fails.
If you need more tips on calculators, these articles can help:
Many first-time candidates spend a lot of time reading the curriculum and study notes.
In fact, it is pretty common for Level 1 candidates to plan to finish reading notes right before exam day. This is a huge mistake.
Study notes give you the foundation, but practice exams is the hammer that actively drives it all into your brain. When reading notes, plan to work through a few topical questions at the end of each reading.
Plan to finish reading through your notes early, and get started on full practice exams 4-6 weeks before exam day. An actual timed practice exam will tell you if you need to worry about time (a genuine concern for Level 1), and also gauge your current performance when you grade it. Aim to finish about 6 exam sets (1 set equals 2 x 90 questions) in total, more is better.
General wisdom is that the Minimum Passing Score (MPS) set by the CFA Institute will never be higher than 70%. However, that trend has changed slightly in 2021, and we recommend that candidates aim for a slightly higher target score in your mock exams to be safe.
Although this is unlikely to ever be verified, I generally accept this to be true, as 70%-100% is the highest score bracket you can get for any topic in your results report, and it would be strange indeed if a candidate scored 70%-100% in all topics but still failed. So aim for 70% and above in your practice exams.
However, if you’re anything like me, the first time you eagerly grade your first practice exam will result in a rude shock – you’ll probably score lower than you expected. Don’t freak out – augment your test taking with notes revisions and you will improve.
70% in the actual exam equals success, but it doesn’t mean that sub-70% equals failure.
In the midst of all this hardcore studying, it pays dividends to take a few minutes to sort out logistics of the exam day.
A few weeks before exam day, read my article on what to bring and how to get there, and if you live close enough you might want to visit the test centre beforehand.
Do not trip at the finish line because you prepared badly from a logistical side. A forgotten passport realized too late is all it takes. You’ve been warned!
From the sheer volume of questions in Level 1, the risk of not completing the paper is always there.
If that is threatening to happen to you, you want to blindly guess the rest before ‘put your pencils down’ is heard. There is no penalty or negative marking for guessing. All ‘B’s on all questions you haven’t a clue or haven’t had time for is better than nothing at all.
Refer to our separate guide on time management strategies for the Level 1 exam.
This might sound obvious, but the CFA Institute is very, very strict on exam procedure and behavior.
If a proctor reports that you could be in breach of the rules, all your work is in jeopardy, and this happens to candidates every year. Seriously, don’t mess with the proctors.
Following the exam, please do not compare or discuss questions, or attempt to recreate the exam. You will get busted and banned from taking future exams.
Level 1 may be daunting, but the CFA Level 1 strategy advice above should steer you on the right direction on how to study for CFA Level 1. Any questions? Feel free to comment below and we will respond personally 🙂
Meanwhile, here are other useful articles that should help your CFA Level 1 preparations:
The right set of headphones or earphones can really make a difference to an effective…
Finance certifications such as CFA and FRM are a cost effective way (compared to an…
Finance careers can be lucrative and open up a wide range of professional opportunities. However,…
Financial modeling is a critical skill used by people in a range of analytical and…
Whether you’re applying for an entry level financial position or looking to move into a…
After a long and hard job search, you’ve gotten yourself a job offer. Congrats! But…
View Comments
Good day
I'm Vongai, I'm also planning to sit for the November. Is there a study group that I can join... please share lin n if there is.
Thank you
Hello Team,
I am feeling totally lost. I am looking to appear for Aug 22 exam of level 1. Is it doable ? That’s my first biggest anxiety.
The most biggest hurdle is now whether to study from online portals like IFT / Mark meldrum / Wiley or I go for offline physical class Kaplan Genesis ? Not able to make my decision. Bcoz last I studied full time in 2012 for my mba fiancé and it’s been 10 years gap in studies.
What I should do ? Kindly suggest when possible today
Hey. I applied for the women's scholarship and would give my exams in November. What to do if you don't get a reply before the early bird deadline? Should I wait for the scholarship decision or pay the registration fees before the deadline?
Hi
Can you please let me know how you applied for women scholarship
Hi! I am wondering about the practice part, it´s enough with the questions in the cfa curriculum, the only mock exam it´s provided by CFA and the end of chapter questions of the schweser notes? Or should I buy the Schweser QBank?
Hi Adrian, we normally recommend doing 4-6 sets of practice exams, preferably under timed, exam conditions for practice phase, in addition to end of chapter questions. You can include CFA Institute's mock in that figure.
Hope this helps!
Hi Zee, I'm planning to take level 1 by this November. I've a doubt that can we expect some questions in the exam from end chapter questions and as well as from kaplan
Hi Santosh, I’m also planning to take Level 1 in November.
I am looking for study buddies.
Are you interested? Or Know anyone who might be?
Thanks
Bami
Hi Santosh, I don't think the questions in the actual CFA exam will be the same as the end of chapter questions, nor any from Kaplan.
Thanks a lot Zee. However do you have some advice for someone repeating
When I repeated Level 2, I made sure I put aside more time to study, and more time to practice, and aimed for higher mock practice scores. Make sure you double down on the study methods that work for you, and cut out those that aren't working for you. Hope that helps, and just hit us up here if you need any more advice!
Hey, Your material is on point. Thanks for sharing
No problem!