The CFA program is one of the toughest finance qualifications in the world. It is known for its low pass rates, syllabus and high level of analytical skills that are required. Every year, thousands of students appear for the CFA exams. But only a fraction of them manage to clear the 3 levels. A common question that many aspirants ask is “Is CFA hard?”. The truth is, it is challenging but with the right approach, it is very much achievable.
To help you succeed, here are 5 of the biggest mistakes to avoid during the CFA preparation.
1. Starting Too Late
One of the most common mistakes students make is delaying their CFA preparation. The syllabus is very vast and it requires consistent study. Waiting until the last few weeks to start the preparation can make you stressed and overwhelmed. So, students begin at least 1 year before the exam date. This will make sure that you have enough time. You can also cover the material, revise and practise mocks before the exam.
2. Ignoring CFA Institute Material
Many students rely only on third party notes or coaching materials. They think it will save their time. Summaries are helpful but skipping the CFA Institute’s syllabus is risky and a dangerous thing to do. The exam questions are directly based on the official material. Even if you use external resources, make sure that you practice end-of-the-chapter questions from the CFA course curriculum.
3. Not practising enough Mock Exams
The CFA exam is not just knowledge, it is also about time management and application. A big mistake that students often make is studying theory without practising enough mock tests. At least 8 to 9 full length mock exams should be attempted. This will help you bring speed, accuracy and confidence.
4. Underestimating Ethics Section
Many students consider Ethics as a theory based and leave it for the end. But Ethics is one of the most heavily weighted sections in CFA. Your score in Ethics can even act as a tie breaker. Ignoring Ethics or under preparing for this section can cost you your attempt. Make sure that you practice the ethics questions in detail.
5. Studying without a strategy
Some students go through the CFA books just randomly without a plan. This only leads to incomplete preparation. Instead of this, you can plan your study in phases:
Phase 1- Concept building and reading
Phase 2- Practice End of the chapter questions
Phase 3- Mock exams and revisions
A proper schedule will make sure that you finish the syllabus, revise it twice and enter the exam hall with confidence.
Is CFA hard?
If you are questioning “Is CFA hard?” Yes! The CFA programme is tough. It needs discipline, time management and consistency. But it is not impossible to achieve. The difficulty comes from a big syllabus and study and work balance. But if you avoid the mentioned mistakes, create a plan and give hours and hours of preparation for each level, you can clear the exam!
Conclusion
The CFA journey is not easy but it is rewarding. By starting early, sticking to the CFA material and practising mocks, you can maximise your chances. Make sure that you give enough attention to Ethics and follow a clear strategy. With the right approach, you can achieve the CFA designation and open doors to a global career in investment, finance and portfolio management.
Frequently Asked Questions [FAQs]
- Which is the hardest level of CFA?
The hardest level of CFA is level 3. It is considered as the toughest one as it requires a lot of dedication and revision. Practice writing answers to the CFA institute questions and also time yourself to see your speed and accuracy.
- Which section to focus on the most?
There is no specific section that will help you pass. You should give your attention to all the sections. But these are some of the common ones to focus the most on: Ethics and Professional Standards, Financial Statement Analysis, Equity Investments, Fixed Income and Portfolio Planning & Weight Management.
- How many years does it take to complete the CFA course?
The CFA course on average takes about 1.5 to 3 years to complete. You can complete it in 1.5 years if you are very dedicated.
