When it comes to taking the Chartered Financial Analyst (CFA) exams, having a background in the field undoubtedly provides a head start. But does that mean you cannot do it if you do not have an experience in the financial background? Not at all!
In this article, we will explore whether not having an academic background in Accounting or Finance puts you at a disadvantage when attempting the CFA exam.
While a finance background might offer some familiarity with certain concepts, your success in the CFA exam is more heavily influenced by your determination and disciplined approach to studying.
As a Reddit user says:
Study Tips for Non-Finance Background Students Pursuing the CFA Exam
Understanding CFA Exam Levels
Before delving into your study plan, it's crucial to understand the differences between the CFA online exam levels. Take some time to read articles explaining the distinctions between cfa level 1 and Level II, as well as between Level II and Level III. This knowledge will guide your preparation strategy for each level.
Each level has a different approach and a question paper style. Make sure you understand these differences before you begin to study. While some papers test your fundamental skills, others focus on testing your application and interpretive thinking capacity. Each level pushes your limits. Knowing how they do it can help you prepare accordingly.
Develop a Comprehensive Study Plan
Begin crafting your study plan at least 9 months before your scheduled exam date. While the CFA Institute suggests dedicating around 300 hours of study, consider investing approximately 360 hours or more. This extra time accounts for mastering concepts that finance professionals might already be familiar with.
Allocate the initial 120 hours to reading and listening to lectures. 1FIN by IndigoLearn provides CFA Classes with the world’s no. 1 resource - Kaplan Schweser. Then, dedicate roughly 150 hours to working through practice questions. Reserve the final 90 hours for realistic practice and mock exams, which simulate actual exam conditions and help you gauge your readiness. These mock exams are also valuable for learning how to maintain composure on the actual exam day.
The CFA Institute has some free mock tests to work on. It can give you an idea of the expected questions in the exam. However, it should only be a rough guide for your study plan.
Incorporate Learning Outcome Statements (LOS)
Mastering Learning Outcome Statements (LOS) is pivotal in shaping a robust study plan. Each LOS is paired with a command word, a strategic indicator of the cognitive demands it poses. Although these command words might not be explicitly present in exam questions, they dictate the depth of understanding required in your responses.
The CFA program employs seventeen official command words, each conveying a specific purpose. From "analyze" which dissects components, "calculate" which demands numerical prowess, to "describe" which articulates features using words, these words shape the essence of your exam responses.
Integrating these command words into your study journey makes sure you can cover the exam material in the most effective way possible. Align your study approach with the demands of each command word.
Being thoroughly aware of the learning outcomes, you can ensure you tackle the questions most effectively and showcase your grasp of the subject matter. This strategy becomes a potent tool, enhancing your readiness for exam success.
Leverage CFA Exam Prep Courses
It is admirable to attempt to write the exam with self-preparation. But is it the most effective way?
Our experts suggest the use of seasoned instructors and curated study materials provided by a reputable prep organization to improve your chances of success. You can also use this time to learn finance for non-finance students to bridge your gap between the topics.
Enroll in a CFA exam prep course to help you stay on track and organized. Treat the course like you would a university class. Before attending, familiarize yourself with the relevant materials and develop a basic understanding of the topics that will be covered. Prepare a list of questions you'd like to ask during the course to maximize your learning experience.
cfa institute India is a great option to begin with. Our partnership with Kaplan Schweser provides you with some of the best study materials on the topic.
Relate Concepts to Real-World Applications
For a better grasp of the material, consider how each concept applies in real-world scenarios. If you are feeling unsure, seek guidance from individuals with experience in the field. Engaging with resources like local CFA Societies, online forums, or financial education meet ups can connect you with professionals who can provide practical insights.
Investing your time to network and learn from experienced people can help you gather a better understanding of the world you want to enter.
Take Breaks to Combat Overwhelm
Let us not trivialize the exam and your efforts by calling it easy. There is a huge load of portions to cover. The formats are challenging, and the effort demanded from a candidate is huge.
As you progress, you might experience moments of overwhelm. It is quite natural too. You might end up questioning the value of your efforts. When this happens, resist the urge to give up.
Instead, grant yourself a short break of a few days or even a full week. During this time, refrain from answering practice questions or opening your study materials. You'll be surprised at how even a brief respite can rekindle your motivation and enthusiasm for your studies.
By adhering to these study tips, non-finance background students can confidently navigate the challenges of the CFA examination and achieve their desired outcomes.
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