Are You Thinking About Starting the Rigorous CFA Designation Process?
It’s not for the light at hear. The three examinations are intense. The different subjects you will be studying are Economics, Accounting, Corporate Finance, Portfolio Management, Quantitative Analysis, Fixed Income and Equity Investment Analysis, etc.
The first thing you need to do is ask yourself: “Will earning the CFA Designation help me?”. Only you can answer that. Statistically, you will not pass each exam on the first try. I’ve known many people take five or six years to pass all three exams. The main annoyance is that if you fail the 2nd or 3rd part of the test (by fail, I mean “not pass”), you have to wait a full 12 months to take the exam over. That’s the biggest bummer.
The other thing to consider is the amount of studying you have to put into it. The CFA Institute recommends studying at least 300 to 350 hours for a 1 day, six hour test. This leads me to an obvious point: expect to see points on the exam that you never remember reading about. The CFA Institute is notoriously known for being vague and abstract during the tests. To the point where there is a whole message board (www.analystforum.com) that talks about the frustrations of future CFA charterholders.
Only you control whether or not you can earn this designation. Do you have the discipline? Are you a great test-taker? Can you focus and set aside a great deal of time for three to four months before the 1 day exam? Will you stick with it if you fail one year?
Many people utilize study guides that condense all of the reading material for you. My personal opinion is there is no perfect substitute for the recommended reading from the CFA Institute.
Two more pieces of advice: Network with other’s in your situation and form study groups and two, don’t underestimate 300 hours, because usually it means no fun during the weekends for the last two months prior to the test.
Good Luck!
