Ten Tips to Pass the CFA Level 1 Exam

CFA is the most prestigious designation in Investments you can have after your name. Here are the first steps to acquiring it.

10. Start Early
Spend some time reflecting on why you want to be a CFA. Work out how much prep you would require. The CFA institute prescribes at least 250 hours. However if you do not have any background in finance you might require considerably longer time. On the other hand if you already know most of the stuff even a concerted prep for 1 month might suffice. If you are totally a greenhorn do not apply for the nearest date, pick the next one. Not only would you save money but also buy precious time you need for preparation.

9. Get the Right Study Material
Unfortunately the material supplied by the CFA Institute is bulky and cumbersome. In fact it has put many a candidates off. Majority of the people who clear the exam use Schweser Notes and Software. We also highly recommend this based on personal experience.

8. Calculator
The CFA Institute prescribe only 2 or three calculators. Buy your Texas BA II Plus or Texas BA II Plus Professional as soon as you intend starting with your prep. It is important you get used to the calculator and adjust its settings to your convenience.

7. Work on a Schedule
Take time out from your daily schedule. Diligently follow your plan. Weekends are ideal for studying, also figure out if you are a day or a night person. Try to compete against yourself and keep a score of your regularity.

6. Ethics and FSA
These should be two pillars in your preparation. They have 15% and 20% weightage respectively and there is no way you can afford to do badly in these. For ethics read the prescribed material over and over again. Do the same with caselets and practice questions.

5. Build on your Strengths
Your strengths can be quant or fixed income and equities. Whichever they be make sure you know that topic inside out. Try to max your score in them with no wrong answers. This would really help to push your cumulative score. Needless to say the greater your strengths better your chances.

4. Form a Study Group
Forming a study group that meets on weekends is your chance to evaluate your performance relative to others. No matter how good or badly you compare remember not to get too carried away. Broadly this exam requires self study group sessions are simply a way to encourage yourself to perform better.

3. Seek Help
Do not shy away from joining coaching classes for this exam. Sometime concepts that seem cryptic to you might just dissolve if you have a good teacher explaining them to you. Take time out to investigate a good prep program, ask current students before committing yourself.

2. Develop Exam Temperament
It is important to hit the ground running on D-Day. You must be able to effectively time yourself and finish attempting all your questions on the OMR sheet. Simulate exam environment as far as possible. Enroll for some mock exam. Even if you are preparing from home use an OMR sheet for your practice.

1. Work Hard
There is no substitute for this one. I myself a Finance graduate from a top B-School had to work exceptionally hard. Know and accept ‘Nothing worth having comes Easy’.