Most candidates find CFA Level 2 the hardest due to its deep application of concepts through detailed vignettes, requiring interpretation and problem-solving over mere memorization, though some find Level 3's subjective written responses more challenging. Level 1 is a broad introduction, but Level 2 is a significant jump in rigor, focusing on applying Level 1 knowledge to complex scenarios with data. Level 3 introduces constructed response questions (essays) and portfolio management, demanding synthesis and precise communication, making it cognitively demanding despite fewer readings than Level 2, say AnalystPrep.
CFA Level 2 Difficulty
The Level 2 test is widely considered to be the most difficult of the three exams. The biggest change when moving from Level 1 to Level 2 is the questions taking the form of what is referred to as “item sets.”
How hard is the CFA Level III exam? Due to the difficulty of the essay format of the CFA Level III exam, it's deemed the most challenging CFA exam to pass although it has a higher pass rate than the Level II exam.
The Level I CFA exam has the lowest pass rate out of the three CFA exams. It is generally considered the “easiest” of the three because it tests the material using lower-level cognitive skills and consists of all multiple-choice questions, but it is also often underestimated, resulting in the low pass rate.
Since 2014, the historical CFA pass rates for:
The CFA Level 1 passing score is not fixed every year, but it usually stays between 65% and 70%. CFA Institute does not publish an official cut-off, but this range is considered the minimum benchmark to pass.
The Level II CFA exam is widely considered to be one of the most difficult professional exams. Of the three CFA exams–Level II often claims the title of the most difficult level.
Three months can be enough time, but typically it takes a candidate at least six months to prepare for the CFA Level 2 exam.
CFA Exams Pass Rates
The CFA exams are perhaps the most challenging exams out there. They are often referred to as “bar none” the toughest exams—even harder than medical school or law school exams—with pass rates that hover around 50% and were much lower during the recent pandemic.
The CFA may be down, but it's not out, financial advisors say. A total of 116,727 people sat for all three levels of the CFA exam in the first eight months of 2024, down 2,735 from the same period in 2023, according to the CFA Institute.
People blame burnout after months of study, overconfidence from past academic success, poor time management during the exam, or simply not practicing enough with mocks. Others admit to skipping entire topics like derivatives or ethics, or to suffering from crippling exam anxiety on test day.
CFA is one of the toughest courses in the field of finance. To clear every level, the candidate needs to dedicate at least 300 hours of learning. MBA, on the other hand, is much easier as compared to CFA.
However, let's put things into perspective: the CFA Level 1 exam is not a math test. The CFA Institute has made it clear that calculations will account for no more than 30% of the questions on the exam. To put it in numbers, that's a maximum of 54 out of the 180 questions.
Is CFA Level 3 harder than CA? Well, the answer to this is CFA Level 3 harder than CA is that there is no clear-cut answer to it. Both are difficult in their own way, as CFA Level 3 focuses on portfolio management and requires strong application skills. However, CA is much more broader.
In spite of all odds, average students pass CFA exams regularly by: Employing study schedules with an emphasis on key subjects. Focusing on ethics and key notions, which have high exam weighting. Utilising quality preparation materials and practice exams.
Who gets more salary, CA vs CFA? Salaries for both CAs and CFAs can vary based on experience, industry, and location. On average, a CA in India earns between INR 6 to 10 LPA, whereas a CFA can earn anywhere between INR 5 to 20 LPA depending on the company and the role.
How many hours should I study for each CFA® level? For CFA® Level I, aim for about 300-350 hours; for Level II, around 350-400 hours; and for Level III, 400-450 hours.
Yes, it is definitely feasible. I self-studied for all 3 levels of my CFA exams, with a basic study notes package from Kaplan Schweser and tons of practice papers. You'll need to spend time with Level 2 to understand the materials and make time for practice tests.
Yes, it's possible to pass CFA Level 1 in 1 month with focused study, disciplined daily schedules, and frequent practice with mock exams and quizzes.
The level-wise salary expectations for CFA aspirants in India are roughly ₹4–6 LPA at Level 1, ₹6–9 LPA at Level 2, and ₹10–25 LPA+ at Level 3/charterholder, with ₹30–50 LPA+ achievable for high performers. Moreover, higher brackets are possible in choosing senior investment roles over time in India's top markets.
Will AI replace CFA professionals in finance jobs? No. While AI optimises efficiency, it does not replace intelligent decision-making, client engagement, or ethics oversight performed by CFAs.