The Ultimate CFA® Exam Success Guide: Your Path to Passing with EaseJuly 15, 2023 2023-07-29 19:26
The Ultimate CFA® Exam Success Guide: Your Path to Passing with Ease
The Ultimate CFA® Exam Success Guide: Your Path to Passing with Ease
Are you preparing for the CFA® exam? If yes, then you’re at the right place. CFA® prep can be a daunting exercise for beginners. The thought of covering so many topics and reading so many books in a short period of time can be a stressful one. But with the right guidance, you won’t feel the burden at all.
At CogniVisio, we believe in simplifying the CFA® preparation of students. The video lessons are covered in such a way that it crystallizes the essence of each topic. The audio-visual lessons are filled with cool graphics and animation that make the topics interesting. You also get a 360° overview of each topic.
Importance and significance of the CFA® Exam
The prestige of a CFA® charter is phenomenal. Once you get recognized as a CFA, you can get your dream finance job in the country of your choice. The CFA® charter is recognized in more than 25 countries. Thus, taking a CFA® prep course could be the boost you need in your finance career.
Overview of the guide and its purpose
CFA® is no ordinary exam and unless you have a proper strategy, it is difficult to clear the exam. You have to go through rigorous studies, revisions, and practice sessions to clear the exam. Discipline and perseverance are essential to pass the CFA® exam, especially Level 1. It is therefore crucial to understand the CFA® level 1 requirements.
Understanding the CFA® Exam
Let’s dive in to fully understand the complexities of the CFA® exam.
Overview of the CFA® Program and exam levels
The exam tests the candidate’s knowledge in a wide range of subjects. Economics, finance, and investment are the key subjects. Candidates also have to study geopolitics and corporate ethics.
Key Features and Structure of the CFA® Exam
The CFA® course comprises levels 1, 2, and 3. The questions are both objective and subjective in nature.
The CFA® exam level 1 is conducted in two sessions of 135 minutes each. There are a total of 180 multiple-choice questions in each session.
The level 2 exam is conducted in two sessions of 132 minutes each. There are 22 item sets with vignettes and a total of 88 MCQs.
The level 3 exam is conducted in two sessions of 132 minutes each. There are either 6 item sets and 5 essay sets or 5 item sets and 6 essay sets in this level.
Grasping the exam curriculum and learning outcomes
Here is a list of the 10 topics in the CFA® exam curriculum that are tested in the level 1 exam, along with their respective weightage.
- Ethical and Professional Standards (15-20%)
- Quantitative Methods (8-12%)
- Economics (8-12%)
- Financial Statement Analysis (13-17%)
- Corporate Issuers (8-12%)
- Portfolio Management (5-8%)
- Equity Investments (10-12%)
- Fixed Income (10-12%)
- Derivatives (5-8%)
- Alternative Investments (5-8%)
Preparing for Success
Now that you know the curriculum in detail, it’s time to talk about the right approach to study.
Setting realistic goals and creating a study plan
Studying for CFA® means putting in a lot of grueling hours, ideally 300 as per the CFA® Institute. Since you have to go through a lot of materials covering so many subjects, it becomes essential to have the best approach to complete everything on time. You need to have a good study plan and divide your time appropriately.
Selecting appropriate study materials and resources
After you have a thorough comprehension of the curriculum and have your study plan ready, it’s important to choose the right study materials. This is where it gets tricky as there are plenty of study materials available both online and offline. CogniVisio has the best study materials curated by professionals. The study material is designed in a way that candidates get a good grip on each topic. Our materials are short and crisp that complement the video lessons perfectly.
Effective time management and study techniques
Time management is a critical part of the CFA® exam. If you want to have positive CFA® level 1 results, it is necessary to divide your time appropriately. The topics with high weightage need to be given more emphasis. Identify your strengths and weaknesses and assign your time accordingly.
Utilizing practice exams and mock tests for self-assessment
The CFA® exam tests both your theoretical and analytical abilities. You have a mix of theory and numerical questions in most topics. Merely reading is not enough, you have to practice a lot of questions as well. The practice tests offered by CogniVisio give you a realistic view of the exam questions. Taking these tests will better prepare you for the exam as they are fully standardized. This will certainly improve your CFA® level 1 passing score.
Mastering the Exam Content
In-depth analysis of key topic areas
Before you dive into your study, it’s important to do an analysis of each topic. Whenever you start a topic, go through the curriculum to identify the key content areas. Check previous years’ papers to get an idea of the kind of questions expected. This will give depth to your preparation.
Strategies for understanding and retaining complex concepts
To understand complex concepts, it is better to take short notes and devise mnemonics. They help you retain difficult topics. CFA® level 1 economics, for instance, has a lot of terminologies that can get confusing at times. The short notes and mnemonics come incredibly handy during last-minute revision.
Recommended study resources and supplementary materials
The standard resources offered by the CFA® Institute can be referred by candidates. However, these resources are huge and tedious. It is not feasible to study these resources and finish the curriculum on time. CogniVisio’s CFA® digital curriculum covers each topic in relevant detail. The resources are to the point and sufficient to clear the exam.
Approaches to tackle challenging exam questions
Questions on topics like Alternative Investments and Ethical and Professional Standards as well as derivatives can be puzzling at times. Even the Quantitative Methods topic is quite challenging. You need to have a systematic approach to handle these questions. These questions can take a lot of time if you’re not adequately prepared. Make sure you practice a lot of numerical questions before the exam, timing yourself during the process.
Exam Day Strategies
Preparing for exam logistics and requirements
Carry all the necessary documents (admit card, stationery items) with you. Read the instructions carefully so as to not miss out on any important detail. Double-check your bag before leaving for the test.
Mental and physical preparation for exam success
Be relaxed while going to the exam hall. Believe in your preparation and filter out all noise. Don’t try to study anything new on the exam day. In fact, it is better to not study anything at all. Try meditation if you’re feeling stressed out.
Time management techniques during the exam
You would get 90 seconds to attempt each question in the CFA® level 1 exam. It is critical to adhere to this time limit. Be aware of the time and make sure you don’t get stuck on a question for too long. Leave the question if you can’t figure out the solution and come back to it later.
Approaches to handle different question formats
Both your critical analysis and creative writing abilities are tested in the CFA® exam. The multiple-choice questions test your critical thinking whereas the essay questions test your writing skills. The question format of CFA® keeps changing so you should be prepared to handle any challenge.
Enhancing Performance Through Review and Practice
The best CFA® prep courses provide you with a holistic assessment of your preparation. You can track your progress on their digital platform and get periodic reviews on your performance.
Effective review methods and techniques
Practicing mock tests and getting them reviewed by your instructors or peers is a good way to keep your preparation on track. You should also consider group studies or online study sessions to monitor each other’s progress.
Strategies for reinforcing knowledge and addressing weak areas
Go through your notes periodically to recall what you studied earlier. Weekly and monthly revisions are necessary to reinforce the knowledge you’ve gained so far. Also crucial is to focus on weak areas. This can be done by revisiting the video lessons repeatedly and getting your doubts cleared by the teacher online.
Using flashcards, summary notes, and mnemonic devices
As discussed earlier, flashcards and mnemonic devices are time-tested techniques to retain crucial information. Along with the summary notes, they reinforce the topic in your mind so you don’t forget anything.
Engaging in regular practice and revision sessions
There is no substitute for practice. The CFA® level 1 topics are quite demanding and thus, it becomes necessary to revise regularly to navigate difficult topics.
Managing Exam Anxiety and Stress
Understanding and coping with exam-related stress
As the CFA® level 1 dates come closer, it is natural to feel a little stress. Practice mindfulness and yoga if you find yourself overwhelmed by anxiety.
Developing a positive mindset and maintaining motivation
You must have a positive outlook during the exam. Don’t let the thought of failure come across your mind. Have faith in your preparation and think about your source of motivation. Think about the bright future that lies ahead of you when you become a designated CFA. This will keep you away from self-doubt.
Implementing relaxation techniques and self-care practices
Studying for CFA® can be mentally taxing. Don’t forget to take appropriate study breaks to refresh your mind. Do whatever relaxes you whether it’s watching a movie or a TV show. Self-care is also important. Take a cold shower or indulge yourself in a therapeutic massage if possible.
Exam Results and Next Steps
Understanding the exam scoring process
Since the CFA® level 1 exam has a multiple-choice format, the answers are evaluated with the help of machines. The result of the first two levels are declared within 2 months while level 3 results are declared within 90 days of the exam. Level 3 contains essay sets so it is evaluated by graders. These are professionals who are chosen after a thorough assessment.
Interpreting and analyzing exam results
The minimum passing score is represented by a line. Your score is represented by a thick gray line which may lie above or below the MPS line. If it appears above the MPS, you have passed; whereas if it appears below the MPS, you failed.
Strategies for retaking the exam if necessary
The CFA® level 1 pass rate is 41%, according to the CFA® Institute. Mentally prepare yourself and chalk out a strategy to tackle the test in the second attempt after six months.
Exploring the CFA® charter and professional opportunities
Once you become a designated CFA, you are exposed to a world full of opportunities. You will get opportunities to work as an equity research analyst or a portfolio manager in an investment firm. The career growth is exceptional in the field and successful CFAs have even gone on to become state treasurers and governors of central banks.
Recap of key strategies for CFA® exam success
To summarize, to pass the CFA® exam, you need to follow a definite strategy. This includes analyzing the curriculum in detail, identifying good study resources, and taking practice tests at regular intervals. Revision using flashcards and mnemonic devices helps solidify the information and enables you to recall them effortlessly.
Encouragement and motivation for exam candidates
The long-drawn process of the CFA® exam can result in mental fatigue. It is necessary to keep up the encouragement and motivation. Talk to your peers and engage in healthy competition with them. Reward yourself with little treats when you perform well in a test. This will elevate your mood and keep you going.
Finally, you must realize that being nervous will only hurt your chances in the exam. So prepare with earnestness and be confident in your abilities. Check out CogniVisio’s platform and get access to a wealth of additional resources and practice tests. You can also get our CFA® preparation course price here.