Chartered Financial Analyst
CFA Level - 1
Eligibility and Registration
To register for the CFA Level 1 exam and become a CFA Program candidate, you must meet the following conditions:
A. Education/Work Experience: Must be in the final year of your bachelor's or graduate within 23 months of the exam. Or, have 4,000 hours of relevant work and/or higher education over at least 3 years.
B. Valid International Passport: Required to register and sit for the exam.
C. English Proficiency: The exam is conducted in English.
D. Residency: Must live in a country where CFA exams are available.
About the Exam - CFA Level 1
CFA Level 1 is the first level of the Chartered Financial Analyst (CFA) certification offered by the CFA Institute. It involves an examination that assesses candidates' understanding of foundational concepts in investment management. This encompasses a comprehensive exploration of quantitative analysis, fundamental concepts in economics and finance, the intricacies of financial reporting and analysis, and the application of portfolio management and investment tools. The examination assesses candidatesƒ?T proficiency in these core areas, laying the foundation for a solid understanding of investment principles and practices in the financial domain. Various modules carry different weights in the exam, and to pass CFA Level 1, a minimum score is required in each module.
CFA prep resources
CFA Level 1 Curriculum Modules
Each with its respective weighting as follows:
Ethical and Professional Standards (15-20%):
Covers the CFA Institute’s Code of Ethics and Standards of Professional Conduct, emphasizing integrity, objectivity, and professional responsibility in investment management.
Quantitative Methods (6-9%):
Focuses on key quantitative tools used in finance, including time value of money, probability, hypothesis testing, and regression analysis.
Economics (6-9%):
Explores micro and macroeconomic principles, monetary and fiscal policy, international trade, and currency exchange impacts on investments.
Financial Statement Analysis (11-14%):
Covers income statements, balance sheets, cash flow statements, and ratio analysis to evaluate a company’s financial health.
Corporate Issuers (6-9%):
Focuses on corporate governance, capital budgeting, and cost of capital, including how firms make financing decisions.
Equity Investments (11-14%):
Examines types of equity securities, market organization, and valuation techniques used for analyzing stocks.
Fixed Income (11-14%):
Covers bond valuation, yield curves, duration, convexity, and credit risk in fixed income securities.
Derivatives (5-8%):
Introduces forwards, futures, options, and swaps, along with their pricing and risk management applications.
Alternative Investments (7-10%):
Covers real estate, private equity, commodities, and hedge funds with an emphasis on investment characteristics and strategies.
Portfolio Management (8-12%):
Explores investment objectives, constraints, portfolio planning, asset allocation, and risk-return optimization techniques.
Topic Deep Dives
CFA Level 1 building blocks with quick anchors into the syllabus.
Ethical and Professional Standards
This module lays the foundation of ethical behavior in the investment industry. It explains the CFA Institute's Code of Ethics and Standards of Professional Conduct, helping candidates understand how to apply ethical practices in real-world scenarios, ensuring integrity and professionalism in decision-making.
Quantitative Methods
This section equips candidates with essential tools such as time value of money, probability, hypothesis testing, and regression analysis. These techniques support data-driven investment decisions and form the basis for advanced financial analysis used throughout the CFA curriculum.
Economics
The Economics module provides insight into both micro and macroeconomic principles. It covers supply and demand, market structures, monetary and fiscal policy, and international trade, helping candidates understand how economic forces influence investment markets.
Financial Statement Analysis
This module focuses on interpreting and analyzing financial statements using IFRS and US GAAP. It emphasizes income statements, balance sheets, and cash flow statements, while also teaching tools for assessing a company's performance and financial health.
Corporate Issuers
This section introduces the fundamentals of corporate governance and capital structure. It discusses how firms make financing, investing, and dividend decisions to maximize shareholder value, and the factors affecting their operational and strategic planning.
Equity Investments
This module covers equity markets, valuation techniques, and the different types of equity securities. Candidates learn how to analyze industries, companies, and stocks, and apply models like dividend discount and price multiples for investment decisions.
Fixed Income
Focusing on bonds and debt securities, this module introduces yield measures, risk factors, and valuation techniques. It also explores term structure, interest rate risk, and credit analysis, which are vital for managing fixed income portfolios.
Derivatives
This section provides an introduction to derivative instruments such as forwards, futures, options, and swaps. Candidates learn how these tools are used for hedging and speculative purposes, including basic valuation and payoff structures.
Alternative Investments
This module explores asset classes beyond traditional equity and fixed income, including real estate, private equity, hedge funds, and commodities. It provides insight into their risk-return characteristics and role in portfolio diversification.
Portfolio Management
The final module ties everything together by introducing portfolio construction, diversification, risk management, and investment policy statements. It provides the basic principles of modern portfolio theory and how they are applied in managing client portfolios.
Composition and Exam Structure
Composition and Exam Structure
CFA Level 1 comprises 180 multiple-choice questions, split evenly across two sessions of 2 hours and 15 minutes each. The exam is delivered in a computer-based format. The questions are designed to test your knowledge and application of concepts across 10 topic areas.
There is no negative marking, and all questions carry equal weight.
Format
180 multiple-choice questions on computer-based test
Duration
Two sessions of 2 hours and 15 minutes each
Coverage
Questions span the 10 topic areas listed above
Scoring
No negative marking; all questions carry equal weight
180 MCQs | Two sessions | no negative marking
Preparation Tips
Practical checkpoints to keep your prep on track.
Preparation Window
Allow at least 5-6 months of focused preparation for CFA Level 1 to ensure thorough coverage of all topics.
Time Required
Commit around 300-350 hours of study. Avoiding shortcuts and focusing on concept clarity is key to success.
Material
Use official CFA Institute curriculum along with curated study materials. MidhaFin offers video lectures, summaries, and topic-wise question banks.
Questions
Solve 2,500+ practice questions, including past CFA-style mock questions. This builds confidence and exposes you to various question formats.
Periodic Tests
MidhaFin conducts monthly assessments to track performance and reinforce learning. These are based on the chapters completed during the month.
Mock Tests
Take at least 4-5 full-length mock exams to simulate the actual test environment. MidhaFin mocks provide percentile analysis and topic-wise breakdown.
More resources
Key Level 1 links in one place
Jump straight to plans, syllabus, fees, and popular articles.
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Frequently Asked Queries
To register for CFA Level 1, candidates must have a bachelor's degree, or graduate within 23 months of the exam, or have a combination of 4,000 hours of professional work experience and/or higher education acquired over a minimum of three years.
The CFA Institute recommends candidates dedicate at least 300 hours of study time for CFA Level 1. However, the actual required study time varies depending on prior knowledge and experience in finance.
CFA Level 1 consists of 180 multiple-choice questions, divided into two sessions of 2 hours and 15 minutes each. Each question has three answer choices, and the exam is conducted in a computer-based format.
The CFA Level 1 exam is offered four times a year: in February, May, August, and November. Candidates can select an available exam window that best fits their schedule.
Yes, candidates from any educational background can register for the CFA Level 1 exam. While prior knowledge in finance is helpful, the CFA curriculum is designed to teach fundamental concepts from the ground up.
Candidates can register for the CFA Level 1 exam through the CFA Institute`s official website. They must create an account, complete the registration process, pay the applicable fees, and schedule their exam within the available testing windows.
CFA Level 1 is the first step in the CFA program, designed for those interested in investment banking, asset management, and financial analysis. It is ideal for finance students, professionals, and career changers.
The passing rate for CFA Level 1 fluctuates but is typically around 40-45%.