How tough is the CFA exam? What are important preparation tips for the CFA exam?

manpreet Best Answer 3 years ago

If one has finance or accounting background with few years of experience, passing CFA is not that difficult. CFA is not accounting or finance programme but the curriculum covers this area as a foundation for investment analysis. Valuation of different asset classes requires some knowledge of accounting and finance. If one has non-accounting and non-finance background, the challenge will be bigger as one will require to first understand reading and analysing financial statements and basic knowledge of accounting standards. The vast curriculum is quite a challenge that requires early preparation of about 400 to 500 hours per level. I would rate level 2 as more difficult than level 3. Commitment and hard work will ensure that CFA programme is completed as returns and recognition after passing all the 3 levels of CFA are quite good. It is worth to invest 3 years of life into this world famous investment programme. According to the CFA institute, the following is what a CFA candidate can expect: An average of four years to complete the program, six months of preparation for each exam and 250 hours minimum of study time=10 to hours per week (although candidates report studying 322 hours on average) making a sincere and internalized commitment to completing the program is a prerequisite for success. The program is so intense and requires so much of one's time and energy that for many, trying to complete the program due to someone's or institution's requirements will not provide the motivation necessary to realize the end goal. Develop a study strategy. In addition to the specific study skills that must be developed to pass the exams, you must develop a specific exam strategy that provides time management, skill assessment and taking multiple previous and sample exams. Time management relates to the time necessary for study, and also for taking the exam. For example, a three-hour exam with 120 possible points means one for each minute and a half. At one hour point, you should be on question 40, any extra time used means less time for other questions, but the exam begins with ethics questions (more reading required) so maybe you shouldn't panic if you are at question 45. This understanding will only come with hundreds of practice questions.