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CFA Level 1 – Complete Preparation Guide

Discover how to structure your CFA Level 1 preparation with study timeline, essential resources, and techniques to maximize your score.

Your Path to CFA Level 1 Success

The CFA (Chartered Financial Analyst) Level 1 represents the crucial first step toward obtaining one of the most prestigious certifications in finance. With a pass rate of 43-45% in 2024, preparation requires a methodical and rigorous approach.

This comprehensive guide will accompany you in your preparation, from understanding the exam structure to advanced strategies for maximizing your score. Based on the latest information from the CFA Institute and proven best practices.

Key Statistics 2024

  • Pass rate: 43-45%
  • Recommended study time: 300+ hours
  • Estimated minimum passing score: 68-69%
  • 10-year average: 41%

Understanding the CFA Level 1 Exam

Format

180 multiple-choice questions

Duration

2 sessions of 135 minutes
≈ 90 seconds/question

Format

Computer-based exam
At authorized test centers

Important Characteristics

Question Structure

  • • 3 answer choices (A, B, C)
  • • No penalty for incorrect answers
  • • Use of qualifiers: "most likely", "least likely"
  • • No "true/false" or "except" questions

2024-2025 Calendar

  • February 2025: 45% pass rate
  • May 2025: 45% pass rate
  • August 2024: 44% pass rate
  • November 2024: 43% pass rate

Curriculum Structure and Weightings

The CFA Level 1 curriculum covers 10 topic areas distributed across approximately 3,000 pages. Here is the official weighting breakdown for 2024:

Ethical and Professional Standards

15-20%

Ethical foundations and professional standards of the financial industry

Financial Statement Analysis

11-14%

Financial statement analysis under IFRS and US GAAP

Equity Investments

11-14%

Equity investments and valuation methods

Fixed Income

11-14%

Bonds and fixed income instruments

Portfolio Management

8-12%

Portfolio management and modern theory

Alternative Investments

7-10%

Hedge funds, private equity, real estate, commodities

Quantitative Methods 6-9%
Economics 6-9%
Corporate Issuers 6-9%
Derivatives 5-8%

Recommended Study Timeline

Official Recommendation

The CFA Institute recommends a minimum of 300 hours of study for Level 1. Candidates who pass typically report studying between 300 and 400 hours.

6-Month Plan

  • 50 hours/month
  • • 12-13 hours/week
  • • Ideal for beginners
  • • Thorough reviews

4-Month Plan

  • 75 hours/month
  • • 18-19 hours/week
  • • Sustained pace
  • • Finance background required

3-Month Plan

  • 100 hours/month
  • • 25 hours/week
  • • Very intensive
  • • Experience recommended

Preparation Timeline (4-Month Plan)

Month 1 - Foundations

  • • Ethics & Professional Standards
  • • Quantitative Methods
  • • Economics (start)
  • Target: 75 hours

Month 2 - Financial Analysis

  • • Economics (finish)
  • • Financial Statement Analysis
  • • Corporate Issuers
  • Target: 75 hours

Month 3 - Investments

  • • Equity Investments
  • • Fixed Income
  • • Derivatives (start)
  • Target: 75 hours

Month 4 - Finalization

  • • Derivatives (finish)
  • • Alternative Investments
  • • Portfolio Management
  • • Reviews and mocks
  • Target: 75 hours

Essential Resources

Official CFA Institute Materials

  • CFA Program Curriculum (Digital)

    Complete official content, 93 learning modules

  • Learning Ecosystem

    Practice questions, mocks, study tools

  • Practice Pack (Optional)

    Additional questions and mock exams

Recommended Third-Party Providers

  • Kaplan Schweser

    Concise notes, robust QBank, renowned mocks

  • UWorld Finance

    Visual explanations, adaptive questions

  • 300Hours.com

    Free resources, practical advice

Essential Tools

Approved Calculators

  • • Texas Instruments BA II Plus
  • • HP 12C or HP 12C Platinum

Mobile Apps

  • • CFA Institute App
  • • Provider flashcards
  • • Formula sheets

Study Materials

  • • Formula notebooks
  • • Review tables
  • • Planning calendar

Techniques to Maximize Your Score

Effective Study Strategies

Active Reading Method

  • 1. Overview: Review Learning Outcome Statements
  • 2. Reading: Take structured notes
  • 3. Synthesis: Create section summaries
  • 4. Application: Solve examples

Spaced Repetition Technique

  • Day+1: Reread course notes
  • Day+7: Quick concept review
  • Day+30: Memory test and formulas
  • Day+90: Complete review before exam

Formula Memorization

Critical Formulas to Master

Quantitative Methods:
  • • Geometric and harmonic means
  • • Coefficient of variation
  • • Probability formulas
Fixed Income:
  • • Modified and effective duration
  • • Yield to Maturity
  • • Bond pricing
Flashcards

Daily review 15-20 min

Repeated Writing

Kinesthetic memorization

Mnemonics

Creative associations

Exam Time Management

Optimal Timing

  • 90 seconds maximum per question
  • 60 seconds for simple questions
  • 120 seconds for complex calculations
  • 15 minutes reserved for review

"Flag & Skip" Strategy

  • • Mark difficult questions
  • • Move quickly to next questions
  • • Return to marked questions
  • • Never leave blank answers

Practical Tips for Exam Day

Required Items to Bring

  • Valid international passport

    Only accepted form of identification

  • Approved calculator

    BA II Plus or HP 12C only

  • Clear water bottle

    Without labels, cap allowed

Strictly Prohibited

  • Electronic devices

    Phones, smart watches, etc.

  • Notes and documents

    No reference materials allowed

  • Food

    Except with medical prescription

Exam Day Schedule

T-2h
Final preparation

Light breakfast, quick review of key formulas

T-30min
Arrive at test center

ID check, setup, equipment test

T
Session 1 (135 min)

90 questions - Manage stress, stay focused

T+2h30
Break (30 min)

Light lunch, relaxation, session 2 preparation

T+3h
Session 2 (135 min)

90 questions - Maintain energy and concentration

Psychological Tips

  • Stress management: Breathing techniques
  • Confidence: Remember your preparation
  • Positivity: Avoid post-session 1 discussions
  • Concentration: Ignore other candidates
  • Endurance: Maintain pace for 4h30
  • Pragmatism: Accept difficult questions

Your CFA Level 1 Success

Success in CFA Level 1 requires rigor, methodology, and perseverance. With a pass rate of 43-45%, it's a demanding but perfectly achievable challenge with structured preparation.

Follow this guide, respect your study schedule, use the right resources, and apply the recommended techniques. Your 300+ hour investment will be rewarded with passing this first step toward CFA certification.

Key Points to Remember

  • ✓ Minimum 300+ hours of study
  • ✓ Master all 10 curriculum areas
  • ✓ Practice with mocks and QBank
  • ✓ Memorize essential formulas
  • ✓ Manage time effectively
  • ✓ Prepare mentally for exam day

Finance Tutoring

Excellence in Financial Education

Good luck on your exam!

December 2024