5 things you should consider before entering the CFA® program

by | Nov 1, 2012 | Blog |

1. Have you got the required time available to be successful? The CFA Institute reports an average of 300 hours worth of prep time for successful candidates at each of the 3 levels. Can you realistically find 300 hours in your current schedule in the months preceding each exam?

2. What are your career aspirations? The CFA® program is ideally suited for a buy-side investment career in listed markets, whereas other qualifications might be better suited if you are pursuing traditional investment banking roles like corporate finance and M&A or even if you are pursuing a career in alternative investment strategies (private equity, quantitative hedge funds etc.).

3. Have you got the determination and drive to push through and complete the program, even if you happen to fail a test once or twice? The pass rate at each level is below 50% and given the pass rates it seems that less than 10% of the people that sign up for the level 1 exam will pass straight through the program. Unless you are one of these select few, a more realistic example for most is that they will fail at least one test, extending the study period to 4 years.

4. What are your motivations/reasons for studying the CFA® program? You will have to call on these when the going gets tough, and if they don’t convince you now, they definitely won’t when you are forced to spend your Saturday mornings reading about SWAP contracts and pension liabilities in order to keep up with your study plan.

5. Do you even meet the entry requirements for the program? Most importantly you need to hold a bachelor’s degree, or at least be in your final year in order to enroll (you need to have completed your degree before you can enroll for level 2). You also need to be prepared to take the exams in English language, and hold an international passport. Lastly many people overlook the aspect that you need to complete 4 years of relevant work experience in the investment industry before you can obtain CFA® charterholder status. So if you are counting on the CFA® charter to land you an investment job you may be facing a proverbial chicken and egg situation.

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"CFA Institute® does not endorse, promote or warrant the accuracy or quality of the products or services offered by Financial Exam Academy. CFA® and CFA Institute® are trademarks owned by CFA Institute®"


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