If you have cleared the first 2 Levels of the CFA Exam, then let us first congratulate you. You have demonstrated great commitment and ability to be a CFA Charterholder. You must continue the effort and maintain discipline for your preparation for the CFA Level 3 Exam.

Level 3 – How is it different from the Level 1 and 2?

CFA Level 3 is a whole new ball game. The curriculum may not look as challenging and lengthy as the first 2 levels. However, that does not mean that Level 3 is anyway easier than the first 2 levels. It only means the preparation strategy used in the Level 1 and 2 is not going to work in Level 3.

At Levels 1 and 2, the material is tested much the way it is presented in the curriculum and memorization alone could get you through these levels. The Level 3 curriculum is not as heavy on the content (theories and formulas). It’s all about application of the concepts that you have learnt over the first 2 levels. You must learn each study session well enough so as to integrate your knowledge of it with that of the other study sessions. A single item set or essay question can incorporate concepts from several study sessions.

Exam Format?

Morning Session: 10 to 12 multi-part essay questions worth a total of 180 points. The weight of each essay question and each of the parts is denoted in minutes. For example, a question allocated 12 minutes would carry 12 points.

As the morning exam is an essay paper, it is possible to get some marks for correct method and incorrect final answer. Therefore, clearly show your calculations. Also, it is possible and sometimes even necessary that the answer from one question is used as an input for another.

Afternoon Session: Similar to the Level 2 exam, there are 10 cases followed with 6 multiple choice questions each. So a total of 60 questions from any of the topics.

What are the pass rates at Level 3?

Although the pass rates for Level 3 are higher than for Level 1 and 2, but the trend is similar, downwards. Especially post 2007, the pass rates for Level 3 have dropped significantly and now range around 45-50%.

Topic Weights in Level 3

How should I study for the Level 3 Exam?

Time management is extremely critical in the morning Level 3 Exam. Candidates must attempt all questions in the time allocated and keep their answers to the point. Attempt the easy questions first and come back to tougher questions. Try not to leave anything blank. There is no negative marking for guessing.

The afternoon exam is similar to the Level 2 exam, and is usually manageable. But the difference, of course, is the possible combination of several study sessions in the same item set.

Remember, at Level 3 you sometimes have to use what you learn about one topic to answer a question about another topic.

How can we help you pass the Level 3 exam?

We conduct rigorous classes for the CFA Level 3 on the weekends and help candidates prepare well for the exam. However, as the exam format of Level 3 is unlike the first 2 levels (esp the morning exam), the training methodology must also be accordingly suited.

For our Level 3 Classes:

• All faculty besides being CFA Charterholders, have practical experience in Portfolio Management and thus are able to help connect the content with real world examples.
• Take up real exam questions in the class and train students on writing well structured answers.
• As discussing the topics is the best way to learn and understand them, we encourage candidates in our classes to participate in discussions and even try to explain the concepts to each other.
• We help you learn how to manage time effectively, especially on the morning exam, by practicing to write answers within allocated time.
• We spread out our classes over a long period (at least 3-4 months) so that you spend a long period to go through the topic and review it.
• We ensure you get enough time to do self study, by giving you breaks after every 4-5 classes. This ensures you are upto speed with the classes.