What’s the Best CFA Level 3 Study Order? [2025]

Level 1 Topic Order • Level 2 Topic Order • Level 3 Topic Order

CFA Level 3 exam structure has undergone a huge revamp for 2025 with the introduction of Specialized Pathways (i.e. electives).

The 2025 curriculum is now divided into Core readings (22 Readings, 65-70% exam weight) and a choice of one out of three Specialized Pathways (7-8 Readings depending on Pathway, 30-35% exam weight). In total, there are 29-30 readings in the 2025 CFA Level 3 syllabus across 6 topics.

A common question we get asked in 300Hours Forum is whether candidates should study the topics chronologically, or if there is a better CFA Level 3 study order?

Having passed the CFA Level 3 exam, here’s my view on the optimal order of topics to study (and why).

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Recommended Study Plan for CFA Level 3 Topics (2025’s Curriculum)

The good news is, CFA Institute confirmed that the design of the readings in each study session do not assume that the candidate approaches the study sessions in any particular order.

However, it is worth remembering that Level 3 is quite different from previous levels, as it has a more holistic approach with the additional complexity of 3 choices of Specialized Pathways to choose from.
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Here’s my thought process and strategy on CFA Level 3 topic’s study order:

• Leaving Ethics last: Based on previous experience, this helped with last minute memorization and understanding of this rather dry but crucial topic. The key is to budget sufficient time and not rush through.
• Start strong with a challenging & important topic: Having had a look through the updated content this year, Asset Allocation seems like a good one to ease into studying as it is relatively highly weighted whilst still covering the basics.
• Alternating the difficult and easier topics: This “sandwich method” worked for me super well in previous levels to stay motivated. By alternating trickier and easier topics one after another, it gives a sense of progress and momentum throughout your studies. Crucially, it provides the opportunity to catchup time-wise if you’re lagging behind by blitzing through the lighter topics. Difficulty in this sense is judged not just by content, but more importantly the topic weight.
• Flow of topic: This is also important as the order of studying things matter. Basics have to be learned as a foundation to understanding other more advanced topics, and this has been taken into account as well.

In short, this led me to the following suggested CFA Level 3 study order for 2025’s curriculum:

CFA Level 3 Topic Study Order	2025’s Curriculum
1) Asset Allocation	Reading 1-5
2) Derivatives and Risk Management	Reading 16-18
3) Portfolio Construction	Reading 6-12
4) Performance Measurement	Reading 13-15
5) Your Specialized Pathway of Choice	7-8 Readings
6) Ethics	Reading 19-22

In this study order, we focus heavily on flow of topic and the ‘sandwich’ method to build momentum and maintain study pace. We have paired Asset Allocation and Derivatives together first to cover a significant amount of the curriculum quickly, then follow on with Portfolio Construction (heavier topic) and Performance Measurement (lighter topic) which flows together better as well. Then, we finish off with your choice of Specialized Pathway readings and Ethics.

CFA Institute has improved the overall flow of topics for 2025’s CFA Level 3 curriculum, so our suggested optimal flow of topics pretty much follows the natural curriculum’s order, with the exception of studying Derivatives and the Specialized Pathway earlier.

Below is a little commentary that applies to 2025’s CFA Level 3 readings:

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1st: Asset Allocation

My strategy here is to start strong with Asset Allocation, simply because it is the introduction to many other topics, rather straightforward with one of the highest topic weight (15-20%). It’s a confidence builder!

Key concepts to focus on this topic area are:

• the various stages of business cycle and its relationship to inflation;
• the implications of inflation for cash, bonds, equity, and real estate returns;
• the effects of monetary and fiscal policy on business cycles;
• shape of the yield curve, and its relationship with monetary & fiscal policies;
• various methods of forecasting asset returns;
• asset allocation basics.

If time permits, these study sessions could benefit from making summary notes for future easy reference. Don’t spend too long a time though and move through these topics quickly for the next few big chapters.

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2nd: Derivatives and Risk Management

If you’re new to finance, Derivatives & Currency Management are generally the more challenging chapters compared to Asset Allocation, despite having a smaller number of readings. Derivatives readings are also one of the more calculation-focused ones and very testable. So make sure you allocate more time to properly understand the Derivative concepts here.

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3rd: Portfolio Construction

This topic has one of the larger amounts of readings, but don’t let that alarm you too much.

It has overviews to Fixed Income, Equity and Alternative Investments which are all updated from last year’s readings.

What you need to concentrate most of your time on is:

• Reading 9 (An Overview of Private Wealth Management) which focuses on private clients’ (including individual investor policy statement (IPS)).

There is also a large and key chapter on Institutional Investor’s IPS, which you should know well (Reading 10).

Trading Costs and Electronic Markets is relatively straightforward and are facts you need to learn.

Finally, the last reading consists of case studies, where you’ll learn how to apply your consolidated knowledge holistically. This is a good example of the feel of the exam style questions (although in the real exams you’ll just have mini versions of these case study). 

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4th: Performance Measurement

Performance evaluation is a critical part of the portfolio management process, make sure you are familiar with the ratios for measuring active management (e.g. Sharpe ratio, Treynor ratio, Information ratio, Appraisal ratio, Sortino ratio, Capture ratios).

Investor Manager selection reading is relatively straightforward, but do make sure you know these:

• upside capture ratio,
• downside capture ratio,
• maximum drawdown,
• drawdown duration,
• up/down capture,
• the three basic forms of performance-based fees and how to calculate them.

Interestingly, Global Investment Performance Standards (GIPS) is moved from Ethics here, and definitely worth spending time on. You’ll need to know the guidance on Standards I-VII and their application, as it is a popular area to test on. 

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6th: Your Choice of Specialized Pathway

Now we are more than halfway through the curriculum, hopefully you chose a topic you are deeply passionate about either personally and/or for your career! It is the biggest topic weight (30-35%), so plenty of focus needed here.

If you chose Portfolio Management, here are the key concepts you need to know:

• cash flow matching, duration matching, contingent immunization, rolldown return, rolling yield;
  various durations (money duration, effective duration, key rate duration, modified duration, Macaulay duration, spread duration), convexity;
  butterfly trade, condor trade;
  various spreads (G-spread, I-spread, Z-spread, option-adjusted spread (OAS)).
• various definitions of Value at Risks (e.g. VaR, CVaR, IVaR, MVaR).

Don’t forget the last case study too, it is a likely favorite in the constructed response portion.

If you chose Private Markets, here are the key concepts you should know:

• distributed to paid-in, residual value to paid-in, and total value to paid-in;
• calculations of management fees and carried interest;
• determine the value of a private equity investment for venture capital, growth equity, and buyout situations;
• financial ratios used in valuation of private debt investments;
• compare mezzanine debt and unitranche debt.

If you chose Private Wealth, here are the key concepts you should know:

• the typical fee, revenue, and compensation structures in PWM industry;
• unique characteristics of ultra-high-net-worth individuals vs other clients;
• tax efficiency of investment across various asset types;
• the concepts in Reading 6 (Advising the Wealthy) is prime testing material for constructed-response style questions. Make sure you’re familiar with it!

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7th: Ethics

Saving the ‘best’ for last, Ethics constitutes 10-15% topic weight for the Level 3 exam.

If you have been organized, previous year’s notes may help save time here in your studies and you can focus on learning how to answer constructed response questions.

Remember guys, this is the final challenge. For those candidates who are deemed a borderline case, CFA Institute will factor in the candidate’s score on Ethics in its adjustments, so do make time and effort for this section as has strong influence on a pass or fail.

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Hope you found the CFA Level 3 study order above a helpful boost to your Level 3 preparation. Best of luck for exams!

P.S – these resources may be helpful:

• Get 300Hours’ upgraded Study Planner for free
• Refer to the latest CFA curriculum & topic weight changes for all 3 Levels
• CFA Level 3 – The Top 10 Tips from Previous Candidates & Charterholders
• CFA Level 3: How to Prepare & Pass in 18 Months