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

A financial advisor’s career trajectory can be dramatically impacted by obtaining designations. One of the certifications that is considered to be among the most prestigious and well-known is the chartered financial analyst (CFA) designation. The recipients will likely have access to a career in the investing industry that is both satisfying and rewarding.

CFA is more than just demonstrating your expertise. It calls for dedication since obtaining it demands a great amount of effort: candidates often devote a minimum of 300 hours of study time, which is then followed by the successful completion of a challenging computer-based three-tier test series.

Therefore, to go to the next level, it is necessary to successfully complete all of the levels that came before it. This is because each level is dependent on the information that was obtained in the stage that came before it.

So, “Can an average student pass the CFA exams?”

Your understanding of the program’s curriculum will be tested in a computer-based style on each and every CFA exam, which represents a tough examination. It has been observed that the Level 1 CFA test has been particularly challenging for program applicants as of late, and this is reflected in the current pass rates for the CFA.

It is important to take your preparation for the CFA exams seriously to improve your chances of passing each exam. Moreover, you should make use of free study resources in order to reduce the total expense to obtain a CFA charter holder status.

So, the Question — How Difficult is the CFA Program?

The CFA Exam Pass Rates (2024-2025)

In February 2024, only 44% of around 17,000 candidates passed the CFA Level 1 exam, highlighting the ongoing difficulty of these exams, which are conducted across over 400 test centres worldwide.

In the same year, 49% of candidates passed Level I, marking an improvement over the historical average of 43% in the last decade and 46% since the exam began in 1963. Despite this improvement, the CFA program remains a significant challenge, with pass rates typically below 50%, demonstrating its difficulty.

The CFA exams consist of three levels—Level I, Level II, and Level III—each requiring the successful completion of the previous level to advance. Candidates often dedicate at least 300 hours of preparation for each exam, involving rigorous study and mock exams.

Registration for each level is done individually, with windows opening a few months before the scheduled exam dates. A notable record for Level II was a pass rate of 59% in May 2024, while Level III had a pass rate of 49% in February 2024.

Historically, Level 1 and Level 2 passing rates typically fall between 37% and 52%, while Level 3 rates are slightly higher. When the exams first started, pass rates were higher, indicating that the exams have become more difficult and competitive over time.

In recent years, Level 1 pass rates have generally ranged from 35% to 44%, showing the challenge many candidates face. On average, the percentage of students that pass Level 2 examinations has been between 44% and 52%, while Level 3 pass rates range from 45% to 56%.

For example, if you took the Level 1 exam in 2022, you’d be among the 37% who passed that year. When you attempted Level II the next year, about 47% would have passed, and in 2024, around 49% would make it through Level III.

Candidates are allowed up to six attempts at each level, but they can only try twice a year, with at least six months between each attempt. This emphasises the need for intense preparation and persistence.

The CFA Institute’s high standards ensure that only well-prepared and dedicated individuals succeed, making earning the CFA designation a true measure of perseverance and knowledge in the finance field.

Also Read – Breaking Down CFA Pass Rates by Levels and Years

Factors That Make the CFA Exam Difficult

The CFA exam is known for its complexity, requiring significant time and effort. Several factors contribute to its challenging nature:

• Volume of Study Material: The CFA curriculum covers thousands of pages, replete with detailed theories, concepts, and methodologies. Studying this extensive content demands thorough understanding and retention.
• Time Commitment: The CFA Institute recommends at least 300 hours of study per level. This requires months of focused preparation, particularly challenging for working professionals balancing their career and exam preparation.
• Conceptual Depth: The exam goes beyond memorization, emphasising the need for candidates to understand, assimilate, and apply financial concepts to real-world scenarios. Problem-solving and practical application are key.
• Progressive Difficulty: Each CFA level builds on the previous one, increasing in complexity. While Level 1 focuses on basic knowledge, Level III requires candidates to analyse, synthesise, and apply concepts, particularly in ethics and real-world problem-solving situations.

These factors make the CFA exam a rigorous and demanding process, testing both knowledge and the ability to apply that knowledge in practical, real-world situations.

Also Read – Is CFA Worth Pursuing? Debunking 7 Common Myths In 2024

Can an Average Student Pass the CFA Exams?

Is Intelligence the Only Factor?

Intelligence alone isn’t what makes someone pass the CFA exams. In fact, hard work, discipline, and time management are far more important. Many “average” students succeed because they stay dedicated, study consistently, and plan their time well. It’s not about being a genius; it’s about staying focused, putting in the hours, and studying smart.

Common Traits of Successful CFA Candidates

• Good Time Management: They are great at sticking to a structured study plan.
• Relevant Experience: Working in finance can make it easier to understand the material.
• Practice and Preparation: They spend time practising with mock exams and learn from their mistakes to improve.

These habits help even “average” students perform well and pass the exams.

Work-Life-Study Balance

Balancing full-time work or studies with CFA exam preparation is tough. The key is to create a realistic study schedule that fits into your daily routine. Set aside a few hours each day or on weekends for studying.

Break your study materials into smaller chunks to make it easier to manage. Finding the right balance is essential for staying on track without burning out.

Feeling Overwhelmed With CFA Prep? Join Proschool’s CFA Prep Course! Monthly Batches, Exam Pass Commitment, 24*7 Doubt Solving & More

Is CFA Tougher Than Other Finance Certifications?

For anyone pursuing a career in finance, the path isn’t just lined with numbers—it’s lined with certifications! From CFA to CA, CPA, FRM, MBA, and CAIA, each designation has its unique challenges, demands, and rewards. So, how does CFA stack up against the others? Let’s break it down.

Why Each Certification is Challenging in Its Own Way:

• CFA: Known for its rigorous exams and vast syllabus focused on investment analysis, CFA demands deep understanding and application of concepts, especially in finance and ethics.
• CA: In India, CA is famously tough due to its extensive syllabus and low pass rates. It requires a high level of dedication, particularly in practical training and accounting, which can take years to complete.
• CPA: With a relatively shorter duration, CPA focuses on accounting and auditing standards (especially US-based). It’s challenging but more specialized, with moderate pass rates.
• FRM: FRM is all about risk management. Although only two exams are required, it covers complex topics like quantitative analysis, making it difficult for those without a strong mathematical background.
• MBA: While MBA programs aren’t as focused on one domain, they cover a broader range of topics, making it moderately challenging. The rigor largely depends on the institution.
• CAIA: This certification targets alternative investments, with content centered around hedge funds, private equity, and real assets. It’s manageable with a decent pass rate but requires focused preparation for those not in the alternative investments space.

Each certification is challenging in its own way. If you’re leaning towards investment analysis and portfolio management, CFA is your best bet. However, CA or CPA might suit you better if you’re looking at accounting, while FRM is ideal for risk-oriented roles.

Also Read – CFA Scholarships – Types, Eligibility & Application Process

Is CFA Difficulty a Myth or Reality?

If you’re considering CFA, you’ve probably heard a few myths about it. Let’s debunk some of the most common myths around CFA difficulty.

Myth: Only Finance Graduates Can Pass the CFA Exams

This is one of the biggest misconceptions. While having a finance background can be helpful, the CFA curriculum is designed to be accessible to anyone willing to put in the work. Candidates from various fields, including engineering and even the arts, have successfully passed the CFA exams. It’s about dedication, not just prior knowledge.

Myth: CFA Requires Genius-Level Intelligence

Not true at all! The CFA exams are challenging, yes, but they don’t require you to be a genius. What’s really needed is consistency and discipline. Passing CFA is more about your commitment to studying and understanding concepts, rather than intelligence. Many successful CFA charterholders describe themselves as “average” students who simply dedicated enough time to the material.

Myth: Working Professionals Can’t Balance CFA Preparation with Their Jobs

CFA is popular among working professionals, and balancing work with study is tough but very possible. The key is effective time management. Most candidates study part-time and often create a structured study plan that fits around their job. Whether it’s dedicating weekends to studying or allocating a few hours daily, working professionals pass CFA every year.

Myth: CFA Requires 100% of Your Time and Focus

Many people believe CFA will consume their entire lives, leaving no time for anything else. While it’s true that CFA demands around 300 hours of study per level, breaking down this time over several months makes it manageable. A well-organized study schedule with breaks and some leisure time can help you maintain a work-life balance.

Myth: Failing Once Means You’ll Never Pass

Failing a CFA exam is quite common, and it’s not the end of the world. In fact, most candidates don’t clear all levels on the first attempt. With an option to retake each level up to six times, you have ample opportunities to learn from your mistakes and come back stronger. Persistence is key!

Myth: You Need Expensive Study Materials to Pass

While premium prep materials are helpful, many candidates pass using only CFA Institute’s official curriculum and free resources. It’s about how you study, not how much you spend. Plenty of free online resources, mock tests, and study groups can be just as effective.

Myth: CFA is Only for Investment Banking

The CFA designation opens doors to a variety of fields, not just investment banking. Many CFAs work in roles such as equity research, portfolio management, corporate finance, and risk management. The skills you learn are highly transferable across finance roles, making it a versatile qualification.

How to Make the CFA Journey Easier for Students

Create a Study Plan

• Start Early: Begin studying as soon as possible. For example, if you plan to take the exam in June, try to start studying in January. This gives you six months to learn everything without rushing.
• Stick to a Routine: Follow a regular study schedule. For instance, set aside specific times each day to study, like an hour after work or on weekends. This keeps you organised and helps you focus better.
• Break It Down: Separate the content you are studying into more manageable chunks. Instead of attempting to study the full curriculum for the CFA all at once, you should concentrate on one subject each week. Spend about 6 to 9 months on this. For example, dedicate one month to Ethics, another to Financial Reporting, and so on. This makes studying less overwhelming and easier to manage.

Use CFA Institute Resources

• Official Materials: Use the study materials provided by the CFA Institute, such as the CFA program syllabus, mock exams, and topic tests. For example, after finishing a chapter, take the topic test to check your understanding. These resources are made specifically to help you learn the material effectively.
• Third-Party Resources: You can also look at other helpful materials. For example, Kaplan Schweser has study guides and practice questions, while Mark Meldrum offers video lessons that explain complex topics in simple ways. These resources can give you different perspectives on the material, which can make it easier to understand.

Also Read – 7 Best Study Materials For CFA Level 1 & How To Get Them?

Focus on Core Areas

• High-Weighted Topics: Pay extra attention to important subjects like Ethics, Financial Reporting, and Equity Investments. For instance, if you know that Ethics is a major part of all three exam levels, make sure to spend enough time understanding its principles and applications.
• Learning Outcomes: Check the CFA Learning Outcome Statements (LOS) for each topic. For example, if the LOS for Financial Reporting states that you need to understand cash flow statements, focus on learning how to read and analyze them. This helps you know exactly what you need to learn and what skills to develop.

Take Mock Exams and Practice Questions

• Simulate Exam Conditions: Take practice exams to get used to how the actual exam will feel. For example, sit in a quiet room, set a timer, and try to complete a mock exam in the same time frame as the real one. This prepares you mentally for the exam day.
• Identify Knowledge Gaps: Use these practice exams to see where you need to improve. If you struggle with questions about Derivatives, spend more time studying that topic. For example, review the relevant chapters and do more practice questions focused on Derivatives.
• Time Management: Practice answering questions quickly and efficiently. For instance, during your mock exams, track how long you take on each question. If you find yourself spending too long on difficult questions, develop strategies to move on and come back if you have time left at the end. This helps ensure you can complete all questions during the real exam.

Expert Tips to Pass the CFA Exams

• Ethics is heavily weighted and tested at all three levels, so mastering this area is crucial.
• Divide your time wisely among different topics based on their weight in the exam.
• Identify your weak areas early through practice exams and dedicate more study time to improving them.
• Spread your study hours over several months to avoid burnout and maximise retention.
• Consistency is key—allocate daily study time and stick to it to meet the recommended 300-hour goal.

Now, let’s revisit the question – Is CFA Difficulty a Reality or a Myth? And can an average student pass the CFA exams?

Many people wonder if the CFA exams are really as hard as they say. The truth is, while the CFA program can be challenging, it’s possible that an average student can pass CFA with the right training and support.

Also Read – What Is CFA Practical Skills Module (PSM) | How To Choose The Right PSM

Proschool To The Rescue!

At IMS Proschool, we make the CFA journey easier for you. With over 15 centres across India, 84% of our students recommend joining us. Our CFA classes are taught by experienced faculty who know the ins and outs of the CFA program. We help you ace each level and reach your dreams.

• Monthly Batches: Our CFA program starts every month, making it easy to find a time that works for you.
• Personalised Study Plans: We provide a customised 6-month study plan, plus 3 months for revision. This ensures you cover everything thoroughly.
• Robust Practice: You’ll take 5 mock exams and complete over 2000 practice questions. This prepares you well for the real exam.
• Job Opportunities: After finishing Level 1, we help you find job opportunities right away.

Our CFA classes include a helpful introductory module for those new to finance, ensuring everyone gets off to a strong start. With 900+ hours of training, access to resources, and support from faculty 24/7, you’re never alone in your studies.

If you’re ready to take on the CFA challenge, consider joining IMS Proschool. We’re here to support you every step of the way!

FAQs

What is the average study time required for each CFA level?

The average study time recommended for each CFA level is about 300 hours. This means you should plan to dedicate this amount of time to studying for Level I, Level II, and Level III.

Is CFA harder than other finance qualifications like an MBA or a CPA?

The CFA exam is generally considered to be more challenging than an MBA or CPA due to its extensive curriculum and focus on complex financial concepts. The CFA program is highly specialised and requires a deep understanding of investment analysis and ethics, making it particularly demanding.

Can someone with no finance background pass the CFA exams?

Yes, it is possible for someone with no finance background to pass the CFA exams. However, it will require a significant amount of study and commitment. Many candidates start with little or no finance knowledge and successfully complete the program by dedicating time to learn the material thoroughly.

What are the most difficult topics in the CFA exams?

Some of the most difficult topics in the CFA exams include Ethics, Financial Reporting and Analysis, and Derivatives. These areas often require a strong understanding of concepts and the ability to apply them in various scenarios, making them challenging for many candidates.

Is the CFA exam pass rate affected by exam sittings?

Yes, the CFA exam pass rate can vary based on different exam sittings. Factors such as the difficulty of the questions, the preparedness of candidates, and changes in the curriculum can influence pass rates from one sitting to another. This means some years may have higher or lower pass rates depending on these variables.

Is CFA tough for an average student?

A: Yes, the CFA exams can be tough for an average student, but with dedication, a solid study plan, and the right resources, many average students can pass.

Is CFA tougher than CA?

A: The CFA and CA (Chartered Accountant) qualifications have different focuses and challenges. While both are demanding, many find CA to be more rigorous due to its extensive practical training and exams.

Is a CFA more difficult than an MBA?

A: The CFA is typically considered more challenging in terms of content depth, especially in finance and investment topics. An MBA covers a broader range of subjects, making it different in nature.

Is CFA harder than engineering?

A: Difficulty varies by individual. CFA requires extensive finance knowledge and exam preparation, while engineering involves complex mathematical and scientific concepts. Each has its own challenges.