The CFA Level 2 tips that matter most are the ones that improve memory, reduce stress, and help pass in one go. Candidates who follow a structured plan, use quality study materials, and understand how the exam works increase their chances. This guide covers all the strategies to help learners pass smoothly. CFA Level 2 is the second stage of the Chartered Financial Analyst Program. It focuses on applying investment tools and concepts with a deep asset valuation, ethics, and portfolio management analysis. CFA Level 2 includes complex item sets and mini-case studies. The CFA Level 2 curriculum requires sharp conceptual clarity and disciplined study routines.
CFA Level 2 Tips That Work
Success in CFA Level 2 comes from understanding topics in depth, practising exam-like questions, and planning revision smartly. The exam tests concepts across 10 subject areas with item sets, making it more analytical than CFA Level 1. Real progress begins when learners stop reading unquestioningly and start solving CFA Level 2 mock exams regularly.
Follow the CFA Institute Learning Outcome Statements (LOS)
The Learning Outcome Statements are the heart of the curriculum. Every question links to one or more LOS. Candidates should read the LOS at the start of every chapter to understand what the CFA Institute expects. This gives a clear goal for each reading. Read the LOS → Study the chapter → Solve relevant questions → Revisit LOS. This approach improves retention and guides topic-wise revision.
Practice More Than You Read
The best way to study for CFA Level 2 is to solve daily questions. Each study session should end with practice. Solving CFA Level 2 question types builds confidence and reveals weak areas. Use the CFA Institute’s online question bank, third-party platforms, and previous CFA Level 2 mock exams. Each source has a unique style. This trains the brain to solve different forms of item sets.
Use Time Blocks for Study
Time blocking breaks the day into dedicated study periods. For example, 3 blocks of 90 minutes allow for deep focus. Breaks refresh the brain and improve understanding. Most candidates need 300-350 CFA Level 2 study hours. This becomes easy with 2 hours daily for 6 months.
How to Build an Effective CFA Level 2 Study Plan?
Creating a strong CFA Level 2 study plan helps learners cover the syllabus quickly. The plan should allow for revision, mock tests, and concept application. A rigid plan fails, while a flexible study plan adjusts with personal pace and work-life balance.
Divide the Syllabus into Weekly Targets
Start by dividing readings into weekly portions. Ensure each week includes a mix of Ethics, Quant, and heavy topics like FRA, Equity, or Fixed Income. Cover the entire CFA Level 2 curriculum in the first four months. Keep the fifth month for mock exams and the last month for revision.
| Month | Target |
| Month 1 | Ethics, Quant, and Economics |
| Month 2 | FRA, Corporate Finance |
| Month 3 | Equity, Fixed Income, Derivatives |
| Month 4 | Portfolio Mgmt., Alt Investments |
| Month 5 | Practice CFA Level 2 mock exams |
| Month 6 | CFA Level 2 revision tips & final prep |
Adapt to Your Learning Style
Some prefer reading, others prefer videos. Choose from CFA Level 2 Schweser vs Wiley based on comfort. Schweser’s notes are concise, while Wiley offers more detail. Mix these with CFA Institute materials for a better understanding.
Allocate Time for CFA Level 2 Formula Sheet
Formulas make up a large part of the exam. Create a dedicated formula sheet. Review it every week. Formulas from FRA, Fixed Income, and Derivatives often appear in item sets. Rewriting formulas improves memory and recall speed during the CFA Level 2 AM vs PM session.
Mistakes to Avoid in CFA Level 2 Preparation
Most failures in CFA Level 2 come from common mistakes. Students treat it like CFA Level 1 or focus only on readings. The exam rewards application of knowledge, not rote learning. Avoiding these mistakes boosts your CFA Level 2 passing strategy.
Relying Too Much on Notes Alone
Relying only on summary notes or third-party materials often weakens conceptual clarity. Notes are helpful for revision, not learning. Deep dive into CFA Institute’s examples and end-of-chapter questions.
Skipping Ethics or Studying It Last
Many treat Ethics as less critical. It is a high-weight topic and often acts as a tiebreaker. Ethics also changes slightly each year. Ignoring CFA Level 2 ethics tips causes unnecessary mark loss.
Neglecting Time Management During Practice
Solving mock exams is not enough. Students must solve them under exam conditions. Time management becomes critical due to long item sets. Use a timer while solving CFA Level 2 question types. Practice both the AM and PM sessions to simulate fatigue and attention span.
Top Resources for CFA Level 2 Success
The right resources improve accuracy, boost confidence, and make learning easier. Candidates must use a mix of official materials and external content. This approach strengthens weak topics and improves question-handling skills.
CFA Institute Official Curriculum
The official curriculum provides real exam-style content. Use it to understand how the CFA Institute frames questions. Practice end-of-chapter problems. Refer to CFA Level 2 topic weights to see which areas deserve more time.
Third-Party Materials: CFA Level 2 Schweser vs Wiley
Schweser is known for brevity. It suits candidates with limited time. Wiley, on the other hand, provides detailed video lectures and deeper insights. Combine both with the CFA Institute’s examples for a balanced understanding.
Mock Exams and Topic Tests
CFA Level 2 mock exams simulate real pressure. Complete 6 full mocks before the exam. Analyse results and improve weak sections. Also, solve topic-specific tests to master every subject. CFA Level 2 AM vs PM session practice helps manage fatigue across both sessions.
CFA Level 2 vs Level 1 Difficulty Explained
Many candidates underestimate the leap in complexity from Level 1 to Level 2. This section explores how the difficulty shifts, the depth of understanding required, and what strategies must evolve for success in CFA Level 2.
Structural Shift in Exam Format
CFA Level 1 consists of 180 multiple-choice questions split across two sessions. Each question is independent. In contrast, CFA Level 2 question types are based on item sets, mini case studies, and 4 or 6 related questions. This format requires not just knowledge, but interpretation and application.
For example, if the item set concerns equity valuation, candidates must analyse financial statements and apply valuation models within the same vignette. This raises the analytical bar significantly.
Depth Over Breadth
While CFA Level 1 focuses on foundational knowledge, Level 2 expects candidates to apply and synthesise information. Memory works at Level 1. For CFA Level 2, understanding the theory behind the formulas and using them to create scenarios is essential.
In CFA Level 1, you may memorise the formula for WACC. In Level 2, you must decide how changes in tax rates, leverage, or market conditions affect the WACC in a given case.
CFA Level 2 Topic Weights Differ Heavily
Some subjects have more weight in CFA Level 2. Equity, FRA, Fixed Income, and Ethics often contribute over 50% of the exam weight. This means you cannot study all topics equally, unlike CFA Level 1. Here’s a sample of typical weight distribution:
| Topic | Approximate Weight (%) |
| Equity Investments | 10–15% |
| Financial Reporting | 10–15% |
| Ethics | 10–15% |
| Fixed Income | 10–15% |
| Portfolio Management | 5–10% |
| Derivatives | 5–10% |
| Corporate Finance | 5–10% |
| Quant/Economics | 5–10% |
| Alt Investments | 5–10% |
More Time Per Topic Needed
Due to the complexity of readings and higher weight for specific areas, CFA Level 2 study hours increase. While 300 hours might suffice for Level 1, most candidates invest 350–400 hours for Level 2. The effort also includes solving CFA Level 2 mock exams, revising formula sheets, and reviewing concepts.
CFA Level 2 Revision Tips That Boost Retention
Revision is not about rereading chapters. CFA Level t involves re-engaging with the content through testing, summarising, and applying concepts. Effective revision ensures you can recall and use formulas, ethics principles, and valuation models quickly and accurately on exam day.
Start Revision at Least 6 Weeks Before the Exam
Last-minute studying fails at Level 2. Start full-fledged revision about 6 weeks in advance. Use the first two weeks to revisit all core readings, especially those related to high-weight topics. Use weeks 3 to 5 for CFA Level 2 mock exams and detailed error analysis. In the final week, use CFA Level 2 last-minute tips such as reading Ethics summaries, revising your formula sheet, and solving small topic tests.
Create a CFA Level 2 Formula Sheet
Formulas dominate topics like FRA, Fixed Income, and Derivatives. Create a dedicated formula sheet and review it daily during revision. Rewrite formulas to boost memory. Also, understand the logic behind formulas to apply them correctly in item sets. For example, just knowing the FCFE formula isn’t enough. You need to understand what changes in CapEx or net borrowing mean in different scenarios.
Use Active Recall and Spaced Repetition
Reading a book twice is not the same as remembering what you read. Active recall (like flashcards or blank paper testing) forces your brain to retrieve information. This makes learning stick. Combine this with spaced repetition using apps like Anki or Quizlet.
Use the following pattern for revision:
- Day 1: Read the topic
- Day 3: Recall it via Q&A or flashcards
- Day 7: Review again and test
- Day 14: Re-test with more challenging questions
This method supports long-term retention and ensures the information stays in memory until exam day.
Review Ethics and Blue Boxes Carefully
CFA Level 2 ethics tips include solving all end-of-chapter questions and blue box examples. Ethics is tricky and often acts as a score-differentiator. Use your last 5 days to rework all CFA Institute ethics questions.
Analyse Your Mocks and Create a Revision Tracker
Every CFA Level 2 mock exam teaches something new. Keep a tracker of your errors, weak areas, and recurring mistakes. Spend more time on these in the final 2 weeks. This focused revision yields a higher return than revisiting strong regions.
CFA Level 2 Tips FAQs
- What is the hardest part of CFA level 2?
Level 2 dives deep into financial analysis, making it more complicated than Level 1. The volume of content, item-set format, and case-study style questions challenge time management. Ethics and FRA are particularly tough for many.
- Is CFA level 2 challenging?
Yes, it’s considered the most rigorous among the three levels. It requires a deeper understanding and application of concepts. Many candidates struggle with the shift from memorisation to analytical problem-solving.
- Can you pass CFA level 2 with 60%?
While it’s possible, most successful candidates aim for 70% and above in key areas. Ethics plays a significant role in borderline cases. A balanced performance across all subjects is safer.
- Can CFA level 2 be done in 3 months?
Yes, but only with a structured plan involving 25–30 hours/week of focused study. Avoid distractions and prioritise mock tests. Shorter prep time increases pressure, so consistency is critical.
- What’s the best strategy for CFA Level 2 prep?
Start early with a topic-wise timetable, focus on weak areas, and solve as many practice sets as possible. Ethics should be revised multiple times. Use mock exams to simulate real conditions.
