Tag: cfa

How to prepare a successful CFA study plan

The CFA program requires candidates to pass three separate exams. Each CFA level requires candidates to prepare a lot of material. To be successful, you need to prepare an effective CFA study plan that includes a detailed prep schedule.

Having a study schedule can help you organize your study planner around the topics on which you will be tested. To master these curriculum topics and utilize the time you have we have outlined our recommendations for the CFA Charter and provided you with tips for creating an effective CFA study plan.

Tips For Creating an Effective CFA Study Plan

1. Stick to your CFA study schedule and don’t fall behind.

Once you create your study schedule, be disciplined and stick to it! To provide the motivation to stay on task, take a CFA Program review course and prepare for it like a university course; read the relevant material ahead of time, get at least a big picture of the topics to be covered, and write down any questions you want to ask.

Another great way to stick to your study plan is to form a study group that meets on a regular basis. Studying with others who are facing the same challenge you face provides motivation and support. In addition, being able to ask questions or explain a concept to someone else helps develop your own mastery of the topics. Build the class times and study group meeting times into your schedule, and, once again, stick to it!

2. Prepare, Practice, Perform.

A very useful organizing structure for your plan is based on the three key stages of learning: Prepare, Practice, and Perform. The path to success is to focus on the Learning Outcome Statements (LOS) provided by CFA Institute.

These are performance-based objectives that provide detail on exactly what you are expected to be able to DO on exam day. For example, one LOS might be “Calculate and interpret Net Present Value (NPV).” The command words “calculate” and “interpret” are what you should be able to do correctly.

3. Review regularly.

The material you learn when you begin will not stay with you until exam day if you don’t go back and revisit it once in a while. Plan to spend a few hours each week going back and reviewing material you think you’ve already mastered. Do some CFA practice questions and, if you make any mistakes, dig into those concepts again until you know them.

4. Cover all of the material.

Don’t play the prediction game by guessing which Learning Outcome Statements from the CFA Institute won’t be tested and then ignoring that material. Every LOS is fair game for the exam, and you have to be ready for anything to be tested.

5. Study Ethics and Professional Standards last.

We recommend studying Ethics and Professional Standards after you are comfortable with other CFA topics because preparing for these questions mainly relies on using the ROTE learning method, which is the process of memorizing information based on repetition.

6. Reserve the last month for CFA Mock Exams.

During the last month or so before the exam, begin to take practice and CFA mock exams in realistic settings. Take the exam on your own with no notes, and be sure to block off at least 3 hours to simulate one session. The key is to use the exams to identify how prepared you are by assessing your areas of weakness and addressing them. If you get a question wrong, note whether the issue was the application of your knowledge to the question, or a fundamental lack of understanding of the concept. Keep track of your scores and look for an upward trend…by exam day, you should be scoring above 70% consistently.

7. And finally, reward yourself.

Make a plan to do something fun and relaxing on the day after the exam…golf, hiking, time with family, video games, or simply sleeping. You’ve earned it!

 

If you are interested in joining hands with a leading CFA tuition provider to help make your CFA journey easier, then Kaplan Professional Middle East is here to offer you the expertise of having helped students to successfully ace their CFA exams for several years with the industry’s leading trainers. If you are looking for CFA training, join us as a student to kickstart your CFA exam preparation.

The Real Value of the CFA Charter

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The demand for CFA in UAE has seen an exponential rise over the past decade. Attaining a CFA Charter is considered a key indicator of solid financial knowledge and can often be observed as a crucial decision-making criterion by employers when hiring for various roles within the finance industry.

While CFA has always been much coveted and sought after in the arena of professional development, the demand for it has only increased in the last few years due to the alarmingly low pass rates. The low pass rates make the qualification a worthy and exclusive achievement in the finance industry especially among early to mid-career professionals.

However, it is also no secret that working towards earning this qualification is a challenging task. It requires an average of 900 hours of total study time from aspirants and intense dedication despite which most candidates are met with disappointment in their attempts with a pass rate as low as about 22%.

These statistics often lead aspirants to question the overall value of CFA, opting for the CFA classes and whether or not it is truly worth pursuing. Here is a compilation of the key-value additions that CFA offers to help you understand the true worth of the qualification and assist you in making your decision with better awareness.

 

Higher salary

A boost in salary is perhaps the most commonly known and often mistaken as the only perk to come with the CFA Charter.

According to the CFA Institute’s 2019 survey, CFA salaries are 40% more than their peers and roughly 25% more than MBA holders annually. Therefore, when compensation is the criteria for deciding among aspirants between CFA vs MBA, the former stands at a clear advantage.

Qualification Standardization

The CFA Charterholders enjoy a very high international career mobility. There is little relevance or emphasis paid on the fact where they have attained the charter since it’s a standard form of professional development recognized by employers and countries around the world.

Also, when seeking employment, CFA Charterholders have a higher chance of securing placements since employers across the world acknowledge the dedication and efforts that are involved in earning the charter.

Return-on-Investment

The CFA also has proven to be a very good return on investment, especially when pitched against an MBA degree. While an average MBA may require you to shell out an average of $180,000 and two years of time to pursue the full-time degree, a CFA charter can be attained within a comparatively affordable range of $2500 to $8000.

It is also important to note that most professionals who choose to pursue the CFA qualification, continue their jobs full-time and therefore it does not pose a hindrance to their careers.

In addition, the CFA Institute also presents scholarship opportunities to aspiring candidates who need financial assistance that includes an enrollment fee waiver and a significant discount on registration costs.

Networking

With an impressively wide global network of more than 170,000 members, the CFA Institute offers exclusive opportunities to its Charterholders to connect and engage in member-only events. CFA networking is often seen to be highly effective among job-seekers in the industry.

Regional and local CFA societies regularly organize invitation-based meets to expand professional networks and educational seminars thereby enhancing the scope for continued professional development.

Career Progression

Those professionals who make it through the rather difficult journey of taking the exams and becoming certified Charterholders reap attractive rewards for their hard work. Based on the CFA employment statistics for the period ranging from 2015-2019, it was observed that the number of CFAs hired by the top 10 companies significantly increased year after year. Goldman Sachs and Morgan Stanley depicted the most consistent growth by hiring over 13% more CFAs annually.

It is also commonly observed in the recent hiring trends that employers tend to have a higher regard for CFA applicants since they acknowledge the potential employee’s dedication, hard work, and commitment to personal growth, therefore, making them an attractive prospect to contribute to a firm’s success.

 

Ultimately, all these factors associated with the CFA qualification empower professionals to significantly boost their careers and open more opportunities for future success! The choice is yours to make, and if you are looking to enroll in CFA course in Dubai, Abu Dhabi or anywhere in the Middle East, contact Kaplan Professional to know how we can help you!

Failed the CFA exam? Plan your next steps

Each year, roughly 250,000 candidates appear for the CFA exams around the world in an attempt to claim what is widely considered the “gold standard” within the investment community, the CFA charter.

It is no surprise that the intense difficulty of the CFA exams leads to the majority of the candidates failing at least once. It is, without a doubt, a highly disappointing and disheartening place to be in. However, it is important to see the bigger picture and not lose perspective when attempting to gain a qualification as coveted as the CFA. On the brighter side, candidates gain experience and can appear for their next attempt with a higher level of confidence.

The recently held CFA exams in November 2021 have shown a consistent trend across all three levels, alarmingly low pass rates. While the Covid-19 pandemic may be considered as a contributing factor to this phenomenon, it is important to focus on what are the ideal next steps one must take to ensure that they achieve success in the next attempt.

 

Better prepared for next attempt

The average CFA candidate spends about four years before gaining the charter, which shows that most fail at least one exam on their journey. While it may lead one to believe that 300 hours of study have been wasted, it is important to remember that a significant part of the preparation for the next attempt has already been completed leading the thought of “wastage” to turn into “investment”.

Can you attempt again?

Candidates are allowed to appear for each level of the CMA exam a maximum of six times, a policy that was instituted in 2021. Also beginning with the 2021 exams, candidates can take an exam up to two times per calendar year but cannot take the exam in windows that are consecutive or less than 6 months apart.

Plan your next attempt

The first step to deciding when to retake the exam is to assess your previous exam preparation experience. How many hours did you spend preparing? Did you consistently stick to a structured study plan? Are there other study materials that could help you pass your next exam? Examine how you will approach exam prep differently going forward, reflect on your own personal/professional goals, and consider the various exam window options offered by CFA Institute to determine when to retake the CFA exam.

In general, we recommend retaking the exam as soon as possible, especially if you can do so in the same calendar year. Registering for the next possible exam is best for the following reasons:

  • Momentum is on your side. Even if you have been taking a break since your last exam, all of the effort you put into preparing for it is relatively fresh.
  • The longer you wait to retake the exam, the higher the likelihood that you will forget the material that you have already learned.

It is particularly important to retake the exam in the same calendar year, if at all possible, since CFA Institute changes the CFA curriculum on an annual basis. Retaking the exam before these annual updates will give you a higher probability of passing because you will be more familiar with the curriculum being tested.

Studying for the next attempt

Regardless of which exam you decide to sign up for, we have some recommendations for approaching the next exam attempt:

  • Carefully review your exam results and use them as a diagnostic tool to help guide your studies on the next attempt.
  • Organize your study plan to focus on weak areas first. Your study plan should be weighted heavily toward practicing the material using the SchweserPro QBank and end-of-chapter questions in the CFA curriculum.
  • After doing additional practice, if you are still performing poorly, revisit the CFA SchweserNotes and OnDemand class videos to relearn the concepts with which you are struggling.

Continue this process until one month prior to the exam and then focus on a well-structured final review process.

For final review, focus heavily on practicing what you have learned, but with the CFA Schweser Mock Exams rather than the SchweserPro QBank. After completing a mock exam, thoroughly review the answer explanations for the questions you answered incorrectly. Make certain you understand the logic behind the correct answer. Also, be sure to use the OnDemand Review videos to sharpen your exam strategy and ensure you retain information for the exam.

Finally, get help through our InstructorLink tool if you are still struggling with the material. We want you to succeed on the CFA exams and are always ready to help. If you are looking to enroll in CFA course in Dubai, Abu Dhabi or anywhere in the Middle East, contact Kaplan Professional to know how we can help you!