How to Clear CFA Level Two Exam: Ten Tips

CFA is the most prestigious three letter designation in Investments you can have after your name. While clearing Level I of the CFA program is quite an uphill task, Level II might seem like climbing Mt. Everest. Below are some tips that would help you on your way up.

1. Understand

Reason out why you are pursuing the CFA program and how exactly it would help you in your career. The path is long and tough, all the while studying for Level 2 I used to curse the day I decided to register for it. However the value it added to me as an Investment Analyst was what kept me motivated.

Incidentally Level 2 is the toughest of the 3 levels in terms of pass percentage.

2. Get your basic fundas right

All concepts of Level 1 form implicit syllabus for Level 2. While it may not be directly tested, it will definitely form the basis of a lot Level 2 topics. Since there is gap of 4 to 10 months between the results and next level you might become a bit rusty. The best way to revise would be to use Level 1 refreshers provided with Level 2 study materials (Schweser, Stalla etc.).


The study material supplied by CFA institute was a lot bulkier and even more cumbersome than what they sent for Level 1. My heart really pains to imagine all trees that they cut down for this. Schweser Notes and software are again highly recommended based on personal experience.

3. Start a lot earlier

I hope the 1st point above is makes it amply clear why one should start a lot earlier. Not only does one have to revise concepts of Level 1 that are expected of in Level 2, the material delves a lot deeper. In fact the material can be so detailed that you might need to study the same topics again and again to understand and retain them well.

4. Work on a Schedule

As level 2 would require a lot more effort it would require even greater amount of time and patience. You will have to allocate greater amounts of time and slack. This is because you might find that you need to revise certain Level 1 topics in depth of begin with certain Level 2 topics all over again for good understanding.

5. Take time off from work

It would be a lot better to take some days off even without pay to clear level 2, rather than to flunk the exam and fret and prepare for another year. Do shy from asking time off to prepare, believe me it would be worth it.

5. Equity and FRA

Equity Investments and Financial Reporting and Analysis are the chunkiest portions of syllabus. I found Equity a lot easier to master. FRA was where I was slightly unsure, I compensated by going through it over and over. I practiced a lot of questions in FRA and marked the ones I would get wrong. I sat down with my Accounts teacher to clear those concepts. I would really pay off to develop these two areas as your strength.  On the exam I got 70+ in both of these.

6. Don’t be shy of seeking help

I hate to break this to you but Superman is fiction. Do not try to be one. If you get stuck somewhere, do seek help. Sometimes we might read something again and again and not understand it, but it can become crystal clear if explained rightly.

7. Don’t be shy of helping

This might actually be the best way to prepare. I helped students with Level 1 prep and volunteered to explain certain sections of Level 2 at my study group. Verbalizing your thoughts makes them a lot clear and you a lot more confident.

8. Last week is crucial

Last week is the most important time. Quickly go through all the portions, revise all the formulae, take at least two practice exams. Do not forget to take ample rest both physical and mental. Maintain a cheery attitude and you will be successful.

9. Work Hard

No shortcuts here, ‘Nothing worth having comes Easy’.
All the very Best !