The Chartered Financial Analyst Course (CFA) is one of the most respected credentials in the finance industry. CFA Level 1 is the first step towards earning this prestigious designation, but it is also one of the most challenging due to its vast syllabus and rigorous exam structure. A well-structured study plan is essential for success. In this guide, we’ll walk you through a step-by-step approach to create an effective CFA Level 1 study plan.
Step 1: Understand the CFA Level 1 Exam Structure
Before diving into your study plan, it is crucial to understand the CFA Level 1 exam format. The exam consists of two sessions, each lasting 2 hours and 15 minutes, with a total of 180 multiple-choice questions. The topics covered include Ethics, Quantitative Methods, Economics, Financial Reporting & Analysis, Corporate Finance, Portfolio Management, Equity Investments, Fixed Income, Derivatives, and Alternative Investments.
The CFA Institute recommends at least 300 hours of study time for CFA Level 1, making time management and structured learning key factors for success.
Step 2: Set a Realistic Study Timeline
A common mistake many candidates make is underestimating the time required for effective preparation. Ideally, you should start preparing 4 to 6 months before the exam date. Here’s a suggested study timeline:
- Months 1-2: Cover 50% of the syllabus, focusing on Ethics, Quantitative Methods, and Financial Reporting & Analysis.
- Months 3-4: Complete the remaining syllabus, including Fixed Income, Equity, and Derivatives.
- Month 5: Revise all topics and start taking practice tests.
- Month 6: Focus on mock exams and final revisions.
Step 3: Allocate Time Based on Topic Weightage
Since not all topics carry equal weight, your study plan should prioritize high-weightage topics. Below is an approximate breakdown of the exam weightage:
- Ethics and Professional Standards – 15-20%
- Financial Reporting & Analysis – 13-17%
- Equity Investments – 10-12%
- Fixed Income – 10-12%
- Corporate Finance – 8-12%
- Quantitative Methods – 8-12%
- Economics – 8-12%
- Portfolio Management – 5-8%
- Derivatives & Alternative Investments – 5-8%
Since Ethics plays a crucial role in passing the exam, it’s recommended to start and end your preparation with this topic.
Step 4: Use High-Quality Study Materials
Selecting the right study materials can significantly impact your preparation. Here’s what you need:
- CFA Institute Curriculum – The official material should be your primary resource.
- Third-Party Study Guides – Providers like Kaplan Schweser, Wiley, or Bloomberg offer condensed notes and question banks.
- Practice Questions & Mock Exams – Aim to solve at least 2,500+ practice questions and 4-6 mock exams.
Step 5: Follow an Active Learning Approach
Passively reading materials is not enough to master CFA Level 1. Use these active learning strategies:
- Summarize key concepts – Create short notes or flashcards.
- Teach what you learn – Explaining concepts to someone else improves retention.
- Solve practice problems daily – Reinforce your understanding through application.
- Join study groups or forums – Engaging with peers can help clarify doubts.
Step 6: Develop a Review & Revision Strategy
The final month should focus on revision and mock exams. A structured revision plan should include:
- Revisiting weak areas – Identify topics where you struggle and re-study them.
- Taking full-length mock exams – Simulate exam conditions to improve time management.
- Reviewing Ethics extensively – Many candidates pass or fail based on their Ethics score.
- Practicing formula-based questions – Quantitative sections require strong numerical skills.
Step 7: Maintain Discipline and Stay Motivated
Preparing for CFA Level 1 is a marathon, not a sprint. Stay disciplined by:
- Setting daily study goals – Stick to your schedule and track progress.
- Taking breaks – Short breaks between study sessions improve focus.
- Avoiding burnout – Balance studies with physical activity and relaxation.
Final Thoughts
CFA course is challenging, but a structured and disciplined study plan can make all the difference. By starting early, focusing on high-weightage topics, using effective study materials, and consistently practicing, you can increase your chances of passing the Chartered Financial Analyst Course on your first attempt. Stay committed, follow your plan, and success will follow!
