CFA® Level I Exam in 2025: A Conversational Guide to the Best Study Order

So, you’re warming up for the CFA Level I exam in 2025. Congratulations! At AnalystPrep, we understand that this is more than just an exam—it’s a crucial step in your financial career. We know that the journey ahead is challenging, but with a strategic approach to your study plan, you can maximize your chances of success. In this guide, we’ll walk you through the most effective study order for the CFA Level I exam, offering practical advice and insights that we’ve fine-tuned over the years to help you navigate this process with confidence.

Why Study Order Is a Big Deal

Let’s face it: the CFA Level I curriculum can seem overwhelming. It’s packed with a wide range of topics, each building on the previous ones. Think of it like constructing a house. You wouldn’t start with the roof before laying the foundation, right? Similarly, having a strategic study order helps you build your understanding progressively, ensuring that you’re not just memorizing facts but truly grasping the concepts. We emphasize the importance of this foundational approach in all our study materials and practice questions.

The Ideal Study Order: Step-by-Step

1. Quantitative Methods: Your Foundation (6-9% Topic Weight)

Starting with Quantitative Methods is like setting up your toolkit. This section covers the basics of financial calculations, including the time value of money, probability, and statistical methods. These concepts are crucial because they form the basis for many other topics in the CFA curriculum. Imagine you’re learning to cook; you wouldn’t start with dessert. Instead, you’d first master the basics of cooking techniques, which you’ll later use in more complex recipes.

What to Focus On:

• Time Value of Money: Understand how to value cash flows over time. This concept is foundational for understanding asset pricing and investment valuation. AnalystPrep video lessons break down these concepts with practical examples to make them easier to grasp.
• Probability and Statistics: Get comfortable with probability distributions, hypothesis testing, and regression analysis. These tools will come in handy when you dive into financial models. We recommend practicing with our extensive question bank to reinforce these concepts.
• Calculator Familiarity: Spend time learning the ins and outs of your CFA-approved calculator (Texas Instruments BAII Plus or Hewlett Packard 12C). Being proficient with your calculator will save you time and reduce errors during the exam. We include calculator tips and tricks in our study notes to help you master this crucial tool.

2. Economics: The Big Picture (6-9% Topic Weight)

Once you have your quantitative skills in place, it’s time to look at the bigger picture with Economics. This section explores how markets operate, the impact of fiscal and monetary policies, and global economic factors. It’s like stepping back and understanding the environment in which your financial principles operate.

What to Focus On:

• Demand and Supply Analysis: Grasp how market forces influence prices and quantities.
• Economic Indicators: Learn about GDP, inflation, and unemployment rates. These indicators are crucial for understanding economic conditions.
• Global Economics: Pay attention to international trade, exchange rates, and geopolitical events. These factors can significantly impact investment decisions. Our study notes provide concise summaries and real-world examples that make these economic concepts more relatable and easier to understand.

3. Corporate Issuers: Understanding the Players (6-9% Topic Weight)

With a solid grasp of economic fundamentals, move on to Corporate Issuers. This section is all about understanding the business side of finance. It covers corporate structures, governance, and financial strategies. Think of it as learning about the key players and how they operate within the financial system.

What to Focus On:

• Corporate Structures and Governance: Understand different types of corporate entities and their governance practices.
• Capital Structure: Learn how companies finance their operations through debt and equity.
• Risk Management: Explore how businesses manage financial and operational risks. Our detailed practice questions at AnalystPrep can help you test your understanding of these concepts, ensuring that you’re well-prepared for the exam.

4. Financial Statement Analysis: The Numbers Game (11-14% Topic Weight)

Next up is Financial Statement Analysis. This is where you get to dig into companies’ financial statements. You’ll learn how to interpret income statements, balance sheets, and cash flow statements. This section is like learning to read the scorecard of a game—you need to know how to analyze and interpret the numbers to understand the company’s performance.

What to Focus On:

• Income Statements and Balance Sheets: Get comfortable with how to read and analyze these statements. AnalystPrep’s video lessons take you step-by-step through these financial documents, making them more approachable.
• Financial Ratios: Learn to calculate and interpret ratios such as profitability, liquidity, and solvency ratios. Our practice questions are designed to help you apply these ratios in real-world scenarios.
• Quality of Financial Reporting: Understand how to assess the reliability of financial statements. Our comprehensive study notes include tips on identifying red flags in financial reporting.

5. Equity Investments: Diving into Stocks (11-14% Topic Weight)

With financial statement analysis under your belt, dive into Equity Investments. This section focuses on stocks and other equity securities. You’ll explore how to value stocks, understand market efficiency, and use various tools to assess stock performance. It’s like learning the ins and outs of the stock market and how to make informed investment decisions.

What to Focus On:

• Valuation Techniques: Learn methods like discounted cash flow (DCF) and price-earnings (P/E) ratios. Our practice questions at AnalystPrep include a variety of valuation scenarios to reinforce your learning.
• Market Efficiency: Understand the different forms of market efficiency and their implications for investment strategies. We also offer video explanations that break down complex concepts into bite-sized lessons.
• Equity Securities: Get familiar with the types of equity securities and their characteristics. Our question bank covers a wide range of topics to help you test your understanding.

6. Fixed Income: The Bond Market (11-14% Topic Weight)

Next, turn your attention to Fixed Income. This section covers bonds and other debt securities. You’ll learn about bond pricing, interest rate risk, and credit analysis. Think of it as understanding the other side of the investment spectrum—where you’re dealing with loans rather than ownership.

What to Focus On:

• Bond Valuation: Understand how to price bonds and the factors that affect their value. Our study notes simplify complex bond pricing models with clear explanations and examples.
• Interest Rate Risk: Learn how changes in interest rates impact bond prices. AnalystPrep’s practice questions are specifically designed to challenge your understanding of interest rate risk.
• Credit Analysis: Explore methods for assessing the creditworthiness of issuers. Our detailed question bank includes a range of credit analysis scenarios to help you prepare.

7. Derivatives: Advanced Instruments (5-8% Topic Weight)

Now, it’s time to tackle Derivatives. These are financial instruments whose value is derived from underlying assets. This section includes options, futures, and swaps. Derivatives can be complex, but understanding them is crucial for managing risk and speculating in financial markets.

What to Focus On:

• Types of Derivatives: Learn about forwards, futures, options, and swaps. AnalystPrep’s study materials include detailed explanations and examples of each derivative type.
• Pricing and Valuation: Understand how to price and value these instruments. Our video lessons simplify the math behind derivative pricing.
• Uses and Risks: Explore how derivatives are used for hedging and speculation and the risks associated with them. Practice with our question bank to reinforce your understanding.

8. Alternative Investments: Beyond the Basics (7-10% Topic Weight)

With a solid grasp of traditional investments, explore Alternative Investments. This section covers non-traditional assets like private equity, real estate, and hedge funds. These investments offer diversification and different risk-return profiles compared to traditional securities.

What to Focus On:

• Types of Alternatives: Learn about private equity, real estate, infrastructure, and hedge funds. Our study notes offer concise summaries that highlight the key differences and similarities between these asset classes.
• Performance Measurement: Understand how to evaluate the performance of alternative investments. AnalystPrep’s practice questions include scenarios that test your ability to measure performance accurately.
• Compensation Structures: Explore how managers of alternative investments are compensated. Our detailed examples in the question bank will help you grasp these concepts more effectively.

9. Portfolio Management: Putting It All Together (8-12% Topic Weight)

As you near the end of your study plan, focus on Portfolio Management. This section integrates the concepts you’ve learned throughout the curriculum and applies them to managing investment portfolios. It’s about understanding how to build and manage a portfolio to achieve specific investment objectives.

What to Focus On:

• Portfolio Construction: Learn the basics of building and managing investment portfolios. AnalystPrep’s video lessons walk you through real-world examples of portfolio construction.
• Risk and Return: Understand how to balance risk and return in a portfolio. Our practice questions help you apply these principles in various portfolio scenarios.
• Behavioral Biases: Explore how biases affect investment decisions and portfolio management. We offer case studies in our study materials that illustrate these biases in action.

10. Ethical and Professional Standards: The Foundation of Trust (15-20% Topic Weight)

As the most heavily weighted section of the CFA Level I exam, Ethical and Professional Standards is the backbone of the CFA curriculum. It’s not just about knowing the rules but understanding the principles that govern professional conduct in the investment industry. At AnalystPrep, we emphasize the importance of ethics in all our study materials because we know that a strong foundation in ethics is essential for building a successful career in finance.

What to Focus On:
• Code of Ethics and Standards of Professional Conduct: Familiarize yourself with the CFA Institute’s Code of Ethics and the Standards of Professional Conduct. These are the core principles that guide the behavior of all CFA charterholders. Our study notes provide clear explanations and examples to help you internalize these standards.

• Application of Standards: Understanding the standards is one thing; applying them in real-world scenarios is another. Practice is key here. AnalystPrep’s question bank includes numerous case studies that test your ability to apply ethical principles to various situations, helping you develop the judgment necessary for the exam—and for your future career.

• GIPS Standards: The Global Investment Performance Standards (GIPS) are another critical component. These standards ensure that performance presentations are consistent and comparable across the industry. Our video lessons cover GIPS in detail, providing you with the knowledge you need to approach these questions confidently.

Wrapping Up: Bringing It All Together

As you approach the final stretch of your CFA Level I exam preparation, it’s important to remember that your study order is more than just a checklist—it’s a strategy. By following the recommended sequence, you’re not only building a solid foundation of knowledge but also ensuring that you’re connecting the dots between different topics.

At AnalystPrep, we’re here to support you every step of the way. Our comprehensive study packages are designed to complement your study plan, offering video lessons, practice questions, and study notes that align perfectly with the CFA curriculum. Whether you’re starting with Quantitative Methods or wrapping up with Ethical and Professional Standards, we provide the tools and resources you need to succeed.

Final Thoughts: Stay Focused and Confident

Preparing for the CFA Level I exam is no small feat, but with the right approach, you can conquer the material and walk into the exam with confidence. At AnalystPrep, we’re committed to helping you succeed. By following a strategic study order, making use of our comprehensive resources, and staying focused on your goals, you’ll be well on your way to earning your CFA charter.

Remember, the journey to becoming a CFA charterholder is a marathon, not a sprint. Take it one step at a time, keep your study plan on track, and don’t hesitate to reach out to us at AnalystPrep if you need guidance or support along the way. We’re here to help you every step of the journey.

Good luck with your studies, and we look forward to celebrating your success!

Related Articles

For more insights and information on preparing for the CFA exams, check out these articles:

• Topics in the 2025 CFA Level I Exam: Dive deeper into the key topics you’ll encounter in the 2025 CFA Level I exam, with a breakdown of each section’s focus and weight.
• The 2025 CFA Exam: Rules for Refunds, Deferrals, and Exam Day: Stay informed about the important rules and regulations surrounding the 2025 CFA exam, including policies on refunds, deferrals, and what to expect on exam day.
• Understanding the 2025 CFA Level I Exam: Get a comprehensive overview of the 2025 CFA Level I exam, including the format, content, and strategies to help you succeed.