Introduction
The Chartered Financial Analyst (CFA) program is often called the “gold standard” of finance certifications. Recognized globally, it opens doors to careers in investment banking, equity research, portfolio management, and corporate finance.
For every aspiring finance professional, CFA Level 1 is the first and most crucial step. This exam tests your foundation in finance, accounting, economics, and ethics. While the CFA journey is challenging, with the right study plan, preparation strategy, and discipline, success is within reach.
In this guide, we’ll share a step-by-step CFA Level 1 study plan, expert tips, and common mistakes to avoid so that you can prepare effectively and pass the exam with confidence.
CFA Level 1 Exam Overview
Before diving into strategies, it’s important to understand the exam structure.
- Format: Computer-based exam.
- Duration: 4.5 hours (split into two sessions of 135 minutes each, with 90 MCQs per session).
- Total Questions: 180 multiple-choice questions.
- Passing Rate: Historically ~40–45%.
Subjects & Weightage
| Subject | Weightage (%) |
|---|---|
| Ethical & Professional Standards | 15–20% |
| Financial Reporting & Analysis (FRA) | 13–17% |
| Quantitative Methods | 8–12% |
| Economics | 8–12% |
| Corporate Finance | 8–12% |
| Equity Investments | 10–12% |
| Fixed Income | 10–12% |
| Derivatives | 5–8% |
| Alternative Investments | 5–8% |
| Portfolio Management | 5–8% |
👉 Key takeaway: Ethics, FRA, and Equity carry the highest weightage and should be prioritized.
How to Prepare for CFA Level 1
1. Understand the Curriculum
The CFA curriculum is detailed and requires conceptual clarity + practice. Focus more on high-weightage subjects like Ethics, FRA, and Equity, but don’t completely ignore the smaller ones — every point matters.
2. Build a 3–6 Month Study Plan
- 6-Month Plan: Study 1–2 hours per day during weekdays, 3–4 hours on weekends.
- 3-Month Plan (intense): Study 2–3 hours per day + weekly mock exams.
A structured plan ensures you cover the syllabus, practice enough questions, and revise before the exam.
3. Use Active Learning Techniques
- Create flashcards for formulas (especially in Quant and FRA).
- Summarize each chapter in your own words.
- Teach concepts to someone else — it reinforces learning.
CFA Level 1 Preparation Tips from Experts
- Start with Ethics – Ethics is not only heavily weighted but also sets the tone for the CFA program.
- Master FRA and Quant – Together, they account for nearly 30% of the exam.
- Use the CFA Institute Question Bank – Practice end-of-chapter questions and topic tests.
- Get comfortable with your calculator – Learn functions on the TI BA II Plus / HP 12C well in advance.
- Revise daily – Even 30 minutes of revision before bed helps retain formulas.
- Take full-length mocks – At least 5–6 mock exams should be attempted under timed conditions.
Common Mistakes to Avoid
Many candidates fail CFA Level 1 because of poor planning. Here’s what you should avoid:
- ❌ Ignoring Ethics (many students assume they can guess it — big mistake).
- ❌ Only reading without practicing MCQs.
- ❌ Leaving mock exams for the last week.
- ❌ Not revising formulas frequently.
- ❌ Overstudying one subject while ignoring others.
12-Week CFA Level 1 Study Plan (Sample)
| Weeks | Focus Area | Key Tasks |
|---|---|---|
| 1–2 | Ethics + Quant | Read curriculum, formula sheet, flashcards |
| 3–4 | FRA + Corporate Finance | Practice EOC questions, calculator usage |
| 5–6 | Fixed Income + Derivatives | Solve practice sets |
| 7–8 | Equity + Economics | Revise key concepts, attempt CFA topic tests |
| 9–10 | Portfolio + Alternative Investments | Quick notes, revise summaries |
| 11–12 | Full Mock Exams | Analyze mistakes, revise weak areas |
👉 Adjust this plan depending on your exam window (May, Aug, Nov, or Feb).
Best Resources for CFA Level 1 Preparation
- CFA Institute Materials: Official curriculum, question bank, and mocks.
- FinHub Academy CFA Courses:
- Learn Lite → Recorded lectures.
- Learn Pro → Live + recorded sessions.
- Learn Elite → Live + recordings + 1:1 mentorship.
- Prep Books: Kaplan Schweser, Wiley.
- Mobile Apps: Formula sheets, flashcards, and calculators.
Conclusion
Cracking CFA Level 1 requires discipline, consistent study, and smart strategy. By starting early, practicing regularly, and focusing on high-weightage topics, you can significantly improve your chances of success.
At FinHub Academy, we help CFA aspirants with structured coaching, expert mentors, and exam-oriented strategies that make preparation easier and more effective. Whether you prefer self-paced learning or interactive live classes, we have a program designed for you.
👉 Ready to begin your CFA journey? Explore FinHub Academy’s CFA Level 1 courses today and take your first step toward becoming a Chartered Financial Analyst.
FAQs
1. How many months are enough to prepare for CFA Level 1?
Most candidates prepare in 4–6 months. With 300+ hours of study recommended, a 6-month plan is ideal, while an intensive 3-month plan also works with discipline.
2. What is the hardest topic in CFA Level 1?
Many students find Financial Reporting & Analysis (FRA) and Quantitative Methods the toughest because of complex formulas and calculations. However, Ethics is also tricky due to situational questions.
3. How many hours should I study daily for CFA Level 1?
If you have 6 months, aim for 1–2 hours daily. If you have only 3 months, study 2–3 hours daily plus longer weekend sessions with mock tests.
4. Is self-study enough for CFA Level 1?
Yes, it is possible with discipline. However, most candidates struggle with consistency and conceptual clarity. Coaching from FinHub Academy provides structured guidance, mock tests, and doubt-solving sessions to boost success chances.
5. What is the pass rate for CFA Level 1?The CFA Level 1 pass rate has historically been around 40–45%, making it one of the toughest finance exams. Proper preparation is crucial to clear it on the first attempt.