Embarking on the journey to become a Chartered Financial Analyst (CFA) charterholder is a commendable decision for university students aiming to excel in the finance industry. The CFA Program is rigorous, with a curriculum designed to endow you with a deep understanding of financial analysis and investment management. Let’s explore the most recent pass rates for the CFA exams and discuss how starting the CFA Program in your penultimate year of university can be advantageous.

The Latest Pass Rates

The CFA Institute has disclosed the pass rates for the latest exams, which are as follows:

• CFA Level I Exam Pass Rate
  • August 2023: 37%
  • November 2023: 35%
  • February 2024: 44%
  • May 2024: 46%
• CFA Level II Exam Pass Rate
  • August 2023: 44%
  • November 2023: 44%
  • May 2024: 59%
• CFA Level III Exam Pass Rate
  • August 2023: 47%
  • February 2024: 49%

These figures represent the proportion of candidates who successfully passed the respective level exams during each testing period.

Starting Early: The Penultimate Year Strategy

For university students, beginning the CFA Program in your penultimate year offers several benefits:

• Time Management: Balancing studies with CFA exam preparation can be challenging. Starting early gives you ample time to manage both academic and CFA commitments effectively.
• Practical Application: Applying theoretical knowledge from your university courses to the CFA curriculum can enhance your understanding of both.
• Career Head Start: Completing one or two levels of the CFA Program before graduation can give you a competitive edge in the job market, signalling dedication and proficiency to potential employers.
• Networking Opportunities: Engaging with the CFA community early on can open doors to internships, mentorships, and career advice.

How to Approach the CFA Exams

To tackle the CFA exams successfully, consider the following strategies:

• Start Early: Begin studying well in advance. The recommended preparation time is at least 300 hours for each level exam.
• Understand the Curriculum: Focus on comprehending the concepts thoroughly rather than rote memorization.
• Practice Consistently: Regularly attempt practice questions and mock exams to familiarize yourself with the exam format and identify areas for improvement.
• Stay Disciplined: Maintain a consistent study schedule to ensure steady progress.
• Leverage Support: Utilise study groups, online forums, and study partners to discuss and reinforce learning.

Conclusion

The CFA Program pass rates reflect the program’s challenging nature and the commitment required to earn the charter. Starting the CFA Program in your penultimate year of university can provide a structured approach to your studies and career planning. With dedication and strategic preparation, you can join the ranks of successful CFA candidates.

Best of luck on your path to becoming a CFA charterholder!

Author: Frank Li, CFA, Portfolio Manager, Diversified Portfolios at MLC.