CFA Level 1 – Exam Pattern, Pass Rates, Books, etc

Chartered Financial Analyst (CFA) comprises three levels of exams and CFA Level 1 is the first step. It familiarises candidates with fundamental principles and techniques in finance, investment, and portfolio management. This exam is ideal for:

• Students who want to launch a career in finance.
• Bankers who are looking to gain a deeper understanding.
• Those who wish to make a career change into investment management or financial analysis.

CFA Level 1 is the best first step if you want to understand the workings of global financial systems, investment strategies, and ethical standards.

Also Read- How To Register For CFA Exams? When Should You Register & Book Your CFA Exams?

CFA Level 1 Exam Pattern

Format and Duration

• The CFA Level 1 exam is a computer-based test (CBT) consisting of 180 multiple-choice questions.
• These 180 questions are split into two sessions of 90 questions each.
• Each session is 2 hours and 15 minutes (135 minutes), for 4 hours and 30 minutes of testing time.

Candidates typically have a break between the two sessions.

Computer-Based Testing (CBT)

Originally paper-based, the CFA Level 1 exam transitioned to computer-based testing to improve accessibility. The exam is offered multiple times per year—generally in February, May, August, and November—and candidates may select their preferred exam window and location through CFA Institute’s scheduling portal. Benefits of CBT include:

• The ability to choose from multiple test windows annually.
• Modern, well-equipped test centers.
• Faster release of exam results compared to the old paper-based format.
• A more standardized test environment, minimizing disruptions and improving the overall candidate experience.

Question Types

All Level I items are multiple-choice, with each item containing:

• A stem (which may be a question, statement, or table),
• Followed by three answer choices (A, B, or C).

Two basic formats are used:

1. Sentence completion with three unique choices.
2. Direct questions with three unique choices.

 

Example #1: Sentence Completion
An underlying principle of technical analysis states that:
A. security prices follow trends that last long enough.
B. the market price of a stock will gravitate toward the intrinsic value over time.
C. financial statements contain all necessary information to value a stock.

Example #2: Direct Question
Which of the following is most likely included in gross domestic product?
A. The markup of wholesale prices by retailers
B. Services provided by government employees
C. Realized capital gains of individual investors

Question Structure

• “Except,” “true,” and “false” are not used in CFA Level 1 questions.
• “Not” is avoided unless necessary.
• Questions will include qualifiers such as “most likely,” “least likely,” “best described,” “most appropriate,” “most accurate,” “least appropriate,” or “least accurate” as needed.
• Each question stem supports only one exam item (no item sets at Level I).

Answer Choices

• The exam does not use “all of the above,” “none of the above,” “A and B only,” “B and C only,” “A and C only,” “cannot determine,” “cannot calculate,” or “not enough information to determine.”
• Choices that are sentences are usually listed from shortest to longest; numerical choices are listed from smallest to largest.
• There is no penalty for guessing; all questions have equal weight.

Exam Day Logistics

• Identification: Bring a valid, government-issued ID (passport recommended).
• Arrival: Arrive at the test center early to complete check-in smoothly.
• Instructions: Follow all proctor instructions carefully.
• Calculator: Only two calculators are approved: the Texas Instruments BA II Plus (including the BA II Plus Professional) or the Hewlett Packard 12C (including the HP 12C Platinum). Be certain you have one of these models.

 

Also Read- CFA Self Study Vs Coaching | What’s Best For You? 10 Factors You Need To Consider Before Choosing

CFA Level 1 Syllabus and Topic Weights

Level I Topic	Weight Range
Ethical and Professional Standards	15–20%
Quantitative Methods	6–9%
Economics	6–9%
Corporate Issuers	6–9%
Financial Statement Analysis	11–14%
Equity Investments	11–14%
Fixed Income	11–14%
Derivatives	5–8%
Alternative Investments	7–10%
Portfolio Management	8–12%

 

Curriculum Updates: The CFA Institute regularly reviews and updates the CFA Program curriculum to reflect evolving industry practices. Always refer to the official CFA Institute website for the most current information.

 

Also Read- CFA levels 1,2 & 3 – Syllabus, Exams, How To Study, Tips To Pass & More

CFA Level 1 Pass Rates

Exam Month	CFA Level 1 Pass Rate (%)
February 2024	44%
May 2024	46%
August 2024	44%
November 2024	43%

Historical Pass Rates

Pass rates for CFA Level 1 have fluctuated over the years. Please see the CFA exam historical pass rates (PDF).

Interpreting Pass Rates

A low pass rate reflects the rigorous nature of the exam and the varying levels of candidate preparedness. With consistent effort and proper resources, success is achievable.

Strategies for Success

• Start preparing early.
• Focus on weaker areas.
• Use mock exams to identify gaps in knowledge.
• Dedicate sufficient time to Ethics and Financial Reporting.

 

Also Read- CFA Student Scholarship | Are You Eligible For It? | How To Apply For The CFA Student Scholarship?

Recommended Books & Study Materials

CFA Institute Official Curriculum

The most thorough resource is the CFA Institute’s curriculum. Benefits include:

• In-depth explanations.
• Questions at the end of the chapter to practice
• Complete coverage of every topic on the exam.

Again, there are the official CFA Institute materials here too.

Third-Party Providers

Kaplan Schweser and Wiley are popular providers. They offer:

• Focussed notes for speedy revision.
• Bank questions for comprehensive practice.
• Practice mock exams to get you familiarised with the test day.

 

Kaplan Schweser (Another course provider): — Kaplan is well known for its concise study materials and in-depth question banks.

Wiley: Provides comprehensive video lessons, practice exams, and study guides.

Pros and Cons:

Pros: Simplified material, focussed content, saves time.

Cons: Could leave out some details in the CFA curriculum.

Other Study Resources

Bloomberg Exam Prep: User adaptive learning technology and in-depth analytics to track your progress. Visit Bloomberg Prep.

IFT (Irfanullah Financial Training): They provide video lectures at very low prices on YouTube video lectures and also offer concise notes. Check out IFT’s resources.

Mark Meldrum: One of the most popular resources for CFA candidates, for his thorough video lectures. View Mark Meldrum’s courses.

Choosing the Right Study Resources

Consider your:

• Budget: For some, official materials alone may suffice; others may want third-party providers.
• Learn by: Videos, mnemonics, or problem banks—whatever prepares you best
• Time Constraints: Choose resources that fit into your time frame.

View the IMS Proschool CFA Course for the overall preparation program.

Also Read- 7 Best CFA Level 1 Books & Study Materials & How To Get Them?

Preparation Tips & Study Strategy for CFA Level 1

Creating a Study Schedule

Devote 300–400 total study hours.

Divide the syllabus into small units and set weekly targets.

Complete your syllabus at least a month in advance so that you can revise it.

Effective Study Techniques

Try spaced repetition to remember concepts.

Take timed practice exams.

Look For Mistakes Make Stronger Weak Areas

Balancing Work and Study

For a working professional, read and study for 2–3 hours a day, or plan study sessions on weekends. Students, incorporate CFA prep in your academic tradition.

Also Read- CFA Level 1 Study Plan | For College Students As Well As Working Professionals

Common Mistakes to Avoid in CFA Level 1 Preparation

Failing to Dedicate Enough Time to Ethics and Financial Reporting

These two areas are heavily weighted and critical for passing the CFA Level 1. Aside from Q1 (Scenarios), Ethics contributes the most toward your overall score, and Knowledge of Financial Reporting is important to get a solid base for other topics like Equity and Fixed Income. Focus a lot of your study time on these topics.

Leaning Too Heavily on External Resources

Third-party resources sure make your learning easier, but you should avoid neglecting the CFA curriculum as comprehensive learning cannot be achieved without it. The exam commonly examines nuanced concepts only found in sanctioned materials. Ensure you have a balance of third-party notes and CFA Institute’s books for comprehensive preparation.

Not Taking Practice Tests or Not Reviewing Incorrect Answers

Mock exams form an integral part of the preparation process. They affect real exams and discover strengths and weaknesses in you. Miss these or fail to check your mistakes, and you will repeat them. Make sure to take and review at least 3 full-length mock exams before test day.

Also Read- How Difficult is the CFA Program? | Can an Average Student Pass the CFA Exams Easily?

Techniques to Stay Motivated During CFA Level 1 Preparation

Accountability Buddies

Find another candidate to keep you accountable. Touch base with one another regularly about progress, and tips to improve, and let’s tackle more challenging problems together.

Joining Study Groups

Study groups can be motivational and supportive. Talking to others helps in refining the concepts and explaining difficult subjects. Join groups on social media platforms or CFC forums specific to your area.

Leveraging Local CFA Chapters

Some CFA chapters run candidate events, webinars, and study sessions. Engaging in such activities enables you to interact with seasoned professionals who offer valuable advice on studying effectively.

Making Small, Realistic Goals

Instead, plan your preparation on smaller milestones. Celebrate every milestone to keep you motivated and build momentum along the way.

Rewarding Yourself

Reward each milestone you complete in your study schedule, as small as a break or a sweet. This way, the process can remain fun and less intimidating.

Next Steps After CFA Level 1

Moving on to CFA Level 2

Start preparing early. Level 2 requires more application and analysis in its questions, therefore it is harder than Level 1. Topics remain the same but the difficulty has increased.

Career Impact

Passing Level 1 helps strengthen your resume and can qualify you for entry-level positions in finance like:

• Research Analyst
• Investment Analyst
• Financial Consultant

Networking and Advancement in Your Career

Participate in events hosted by the CFA Society, and take advantage of platforms like LinkedIn to network with professionals in your target firms.

Also Read- CFA Online Vs Offline Classes | What’s Best For Acing The CFA In One Go

IMS Proschool CFA Course

Program Overview

CFA success is better achieved through a structured program and IMS Proschool CFA is the leading name here. Features include:

• Mode of learning: Online & Classroom
• Study Resources: Detailed notes, videos, and over 2,000 practice questions.
• Back up: Sessions to clarify doubts and revise mock tests.
• Placement: 100% placement assistance after every level.

Why Choose IMS Proschool

• Experienced faculty.
• High pass rates.
• Flexible learning options.

Did you know? Proschool offers an Exam Pass Commitment for CFA Level 1! If you don’t pass, you get free coaching to retake the exam.

Conclusion

Level 1 takes a lot of discipline, consistency, and the right resources to prepare for. Timely planning and dedication can help you ace the exam and accelerate your finance career! Start your CFA journey today: Find all the info for registration or book a free info session with IMS Proschool.

FAQs

1. How often is the CFA Level 1 exam conducted?

The level 1 CFA exam can be sat 4 times in a year (February, May, August, and November). It is delivered on computers. There are 10 topics to make you sit for the level 1 CFA exam.

2. What is the typical pass rate for CFA Level 1?

The pass rate for the CFA level 1 exam is approximately 41%. But the pass rate has changed over the years.

Explanation:

• Since the shift to computer-based testing, the CFA Level 1 pass rate has fallen.
• The pandemic has also affected the pass rate.
• In the January 2024 exams, 35% of candidates passed, in February 2024 – 44% of candidates passed, in May 2024 – 46% of candidates passed, in August 2024 – 44% of candidates passed, and in November 2024- 43% of candidates passed.

3. Which study materials should I use for CFA Level 1?

Morally, this is the CFA Institute Official Curriculum. It covers all topics in detail and is complete from A to Z.

Schweser Notes and Wiley: You can consider Schweser Notes provided by Kaplan Schweser, which are information shortnotes specially designed for each level oscillating through the concepts. IMS Proschool provides Kaplan material to all its students. Wiley offers study guides and practice questions that help you to reinforce what you learned.

AnalystForum/ Reddit: Joining online forums or study groups can also help find people who have similar queries about the CFA exams.

Video Lectures: YouTube or specialized CFA sites can help you with video explanations that form complex topics.

It is key to ensure that you plan your study schedule in a way that covers all the topics in time, allows for practice, and reviews weak areas a few times before the exam.

4. How long should I study for the CFA Level 1 exam?

There are no shortcuts. A good work ethic is the only thing separating you from conquering the Level 1 CFA® Program exam.  The CFA Institute recommends you plan to devote a minimum of 300 total hours of study for the Level 1 exam.

5. What happens after I pass CFA Level 1?

• You can do entry-level finance jobs once you clear the CFA Level 1 exam, as an intern, accountant, investment analyst, etc. With CFA Level 1, you can also improve your career further by applying for the CFA charter holder qualification.
• Keep working toward the CFA charter by passing Levels II and III
• Leverage the knowledge and skills learned through the CFA program to advance your career.
• Get to know CFA Charterholders in your network.

6. Is CFA Level 1 very tough?

CFA Level 1 is tough and has a low pass rate. It is often regarded as one of the hardest exams in the world.

Why is it difficult?

• Length: The exam is lengthy, taking about 4-6 hours to complete
• No. of Questions: There are 180 multiple-choice questions in the exam
• Pass rate: Generally between 35% and 44%

Which Are Some Of The Most Hard Topics?

• The second track covers Financial Statement Analysis, Fixed Income, Quantitative Methods, Derivatives, Economics, and Options.

How do you prepare?

• Do well in your exams and do not push your examinations.
• Make sure to leverage the right tools.
• Take the exam seriously.

7. What is CFA Level 1 for?

Level 1 is the first of three levels of the CFA exam, and it tests basic knowledge and comprehension of finance, economics, and fundamental concepts of investment management. Getting an entry-level job after passing the exam is great, but even better future opportunities are waiting if you pass it to the next higher levels.

8. What is CFA Level 1 salary?

In India, the salary offered for a CFA Level 1 candidate ranges from INR ₹4L to 6L per year. The benefits are based on role, experience, and level of certification. Some of the jobs that a CFA Level 1 candidate can get include: financial analyst, research associate, junior investment banker, and wealth management associate. (Source: Glassdoor)

9. What are CFA Level 1 fees?

As of February 2025, the CFA Level 1 exam costs approximately USD 940 for early registration and USD 1,250 for standard registration. The fee will change from April 2025 onwards.