CFA by MidhaFin

Tag: CFA exam preparation

  • Mock Review Playbook

    Mock Review Playbook

    Introduction

    A mock exam often feels like a judgment on your preparation. You look at the total score, compare it with your expectations, and the anxiety sets in. The truth is different. A mock exam is a diagnostic. It shows how you think under pressure. It shows what you truly understand and what needs reinforcement. When you review a mock the right way, the score becomes the least important part of the process.

    Unfortunately, many CFA candidates rush from one mock to the next without a structured review. They hope repetition will lift their scores, yet the same errors appear again. This results in stress, overconfidence in some areas, and blind spots in others.

    This playbook gives you a practical routine to review any CFA Level 1 mock. You will learn how to identify patterns, classify your errors, and create a targeted revision plan that actually sticks. Think of this as an operating manual for mock exams. Follow it consistently and you will feel more confident, more organised, and more prepared for exam day.

    Mindset First: Score Last, Learning First

    When you finish a mock, the instinct is to check the total. Resist that urge. Your score is only a snapshot of one attempt. It does not say anything about your potential. Note it once for reference, then put it aside.

    Your real goal is to understand your decisions. Why did you select a particular option. What were you thinking. Where did the reasoning break. What steps were rushed. When you review your thinking rather than only the outcome, you develop exam discipline. This is what separates candidates who improve from candidates who stagnate.

    Tell yourself this before every mock review:
    The score comes last. The learning comes first.

    Phase 1. Set Up a Proper Review Session

    Treat your review with the same respect as the mock.

    Create a quiet window

    Give yourself two to three hours on the same day or the next morning. Reviewing while the thought process is still fresh helps you understand what you attempted to do, not only what you got right or wrong.

    Gather your tools

    You will need:

    • Your marked mock exam.
    • Official explanations.
    • A simple tracker. Notebook or spreadsheet.
    • Your formula sheet or summary notes.

    Keep everything in one place. A clean setup prevents distractions.

    Define what you want to achieve

    Every review should produce three outputs.

    1. A topic heat map.
    2. An error classification table.
    3. A seven day revision plan.

    When you review with a clear purpose, you stay focused and finish with actions instead of confusion.

    Phase 2. Build a Topic Heat Map

    Before you zoom in on individual questions, start with a top down picture.

    Tag your mistakes

    Go through your mock and label every wrong question by topic.
    FRA. Inventory.
    Fixed Income. Term structure.
    Quant. Sampling.
    Equity. Dividend discounts.

    Be specific. This helps you find patterns.

    Add a short reason tag

    Next to each wrong question, add a short code.

    • Concept gap.
    • Calculation slip.
    • Misread.
    • Time pressure.
    • Guess.
    • Procedure error.

    Do not overthink. Just label what feels correct.

    Summarise the pattern

    Now group your accuracy by sections. Ethics. Quant. Economics. FRA. Equity. Fixed Income. Corporate Issuers. Derivatives. Alternatives. Portfolio Management.

    Create a table with two numbers for each section.
    Total attempted.
    Total correct.

    You will often notice that two or three areas account for most of your lost marks. These are your immediate targets for the coming week.

    This heat map prevents random studying and keeps your focus sharp.

    Phase 3. Build an Error Taxonomy That Works

    Not all mistakes need the same fix. Your review becomes powerful when you understand the type of error you made.

    Common mistake types and how to fix them

    Concept gap

    You do not know or do not recall the underlying idea.
    Fix: Reread only the relevant section. Keep it short. Then solve ten to fifteen targeted questions.

    Framework confusion

    You know the pieces but cannot connect them.
    Fix: Rebuild the structure. Write a decision tree or short summary in your own words.

    Procedure error

    You understood the concept but executed steps incorrectly.
    Fix: Create a three to five step checklist and rehearse it before new questions.

    Formula slip

    Idea is right. Calculation is wrong.
    Fix: Annotate the formula with units and common traps. Then practise slowly with unit checks.

    Reading misinterpretation

    You missed a keyword or detail.
    Fix: Train yourself to underline qualifiers. Annual, nominal, pre tax, post tax, before adjustments, after adjustments.

    Time management miss

    You spent too long on one difficult question.
    Fix: Use strict cutoffs. If you cross ninety seconds without a plan, flag and move on.

    Blind guess

    Either you ran out of time or had not studied the topic.
    Fix: Decide whether it falls within this weeks scope. Not all gaps need immediate fixing.

    Over two or three mocks, you will notice patterns. Maybe you misread often. Maybe formulas. Maybe concept clarity. Your taxonomy directs your revision.

    Phase 4. Deep Dive the Top Three Problem Areas

    Do not try to fix everything. It spreads your attention too thin. Pick the three highest impact areas from your heat map and go deep.

    Step 1. Relearn with purpose

    Focus on the exact node where your understanding failed. If you missed questions on leases, focus on measurement and impact. Do not reread the entire FRA book.

    Step 2. Create a one page note

    Write the rules and relationships in your own words. One page only. If it cannot fit on a single page, it is not distilled enough.

    Step 3. Run a deliberate practice set

    Solve ten to twenty questions on that node. Check your result. If accuracy is below eighty percent, repeat with a new set.

    Step 4. Build a trap list

    Note phrasing, numbers, or patterns that trick you. Every subject has traps. Once you know them, your accuracy jumps.

    This focused cycle saves time and drives retention.

    Phase 5. Post Mock Reinforcement Routine

    Your brain forgets what it does not revisit. Use a simple reinforcement window.

    Within 24 hours

    Redo every question you got wrong without looking at explanations. If you still miss it, mark it in red. This makes the concept memorable.

    Within 3 days

    Attempt ten fresh questions in your weak topics. Keep the sets short.

    Within 7 days

    Take a mixed thirty to forty five minute quiz that includes your trap topics. Aim for eighty percent or higher.

    This rhythm keeps your understanding active and prevents forgetting during the long preparation cycle.

    Smart Strategy for Taking Mocks

    Review matters, but how you take mocks also affects performance.

    Two pass technique

    On the first pass, harvest the clean points. Skip anything that feels long or unclear.
    On the second pass, return to flagged questions and think more deeply.

    This prevents time traps and builds confidence.

    Choose a section order and stick to it

    Some candidates start with Ethics for calm reading. Others start with their strongest section to gain early momentum. Choose what suits your mind and use the same plan for all mocks. Consistency builds rhythm.

    Micro cutoffs

    You have roughly ninety seconds per question on average. Do not exceed that on the first pass. When your timer crosses ninety seconds and you still have no plan, move on.

    Simulate exam conditions

    Use the same calculator. Same water bottle. Same scratchpad style. Same break pattern. Reduce surprises on exam day.

    Turning the Review into a Weekly Plan

    When the review is complete, write a one page plan with three parts.

    Wins

    What went well. What improved. Celebrate small progress.

    Fixes

    Top three issues with a clear remedy.
    Example. FRA. Deferred tax recognition rules. Ten targeted questions on Wednesday.

    Rules for the next mock

    Two behaviour rules you will follow.
    For example. Underline compounding frequency. Move on at ninety seconds.

    Pin this one page plan near your study desk. This keeps you honest and consistent.

    How Many Mocks Should You Take

    There is no magic number. What matters is depth of review, not quantity.
    For most Level 1 candidates, five to seven full mocks with proper review is more than enough.

    If you begin late, do three to four mocks but review every one with precision. Improvement comes from reflection, not repetition.

    Final Takeaway

    A mock exam is not a verdict on your readiness. It is a spotlight that reveals how you think under pressure. The review is where learning happens. Build a heat map. Classify your errors. Fix three areas at a time. Reinforce within a week. Refine your exam behaviour. Repeat.

    Do this consistently and your scores will rise. More importantly, your decision quality will mature. That is what passes the CFA exam.

  • Do I Need a Finance Background for pursuing CFA ?

    Do I Need a Finance Background for pursuing CFA ?

    Introduction

    Every year, thousands of candidates from engineering, economics, mathematics, and even the arts begin their CFA journey. Many share the same concern: Can I do this if I don’t have a finance background?

    It is a fair question. The CFA curriculum looks intimidating at first glance. Terms like “equity valuation,” “portfolio optimization,” or “derivative pricing” can sound foreign to someone outside finance. Yet the truth is simple. A finance degree helps, but it is not a requirement. What matters most is your ability to learn systematically, think analytically, and stay consistent.

    The CFA program is designed for a global audience. It assumes that not every candidate starts with formal finance education. The curriculum builds your knowledge layer by layer, from the basics of money and time value to advanced portfolio management.

    Let’s unpack what that really means in practice.

    Understanding the CFA Curriculum

    The CFA Institute structures the curriculum around three progressive levels. Each level deepens your understanding but begins with clear, defined fundamentals.

    Level I – Building the Foundation

    Level I introduces you to the language of finance. You learn how markets work, what financial statements show, and how analysts interpret them.

    Key subjects include:

    • Quantitative Methods: Basic statistics, probability, and time value of money.
    • Financial Reporting and Analysis: Understanding income statements, balance sheets, and cash flow.
    • Ethics and Professional Standards: The backbone of the CFA program.
    • Economics and Corporate Finance: Core principles applied to investment decisions.

    A non-finance candidate can learn these with discipline and the right resources. Nothing here requires prior accounting or trading experience. You just need to approach each topic as a structured problem, not as jargon to memorize.

    Level II and III – Application and Integration

    Level II moves into valuation, asset classes, and analytical techniques. Level III focuses on portfolio management and client strategies.

    By the time you reach these levels, you will already have enough context to connect the dots. The progression feels natural if your foundations are clear. This design is intentional — the CFA Institute wants candidates from diverse academic backgrounds to succeed.

    The Real Prerequisites: Curiosity and Consistency

    What truly predicts success is not a finance degree. It is the willingness to learn consistently over time.

    • Curiosity helps you question why a concept matters. When you study risk-adjusted returns, do not stop at the formula. Ask what it means in a real portfolio.
    • Consistency keeps you on track. The CFA program rewards steady progress more than bursts of last-minute effort.

    Most successful candidates treat CFA preparation like a long-term project. They plan 250–300 study hours per level, review regularly, and practice actively. This discipline levels the field between finance and non-finance backgrounds.

    What to Expect If You Are Not from Finance

    You will likely face three early challenges.

    1. Unfamiliar Terminology

    Words like “yield curve,” “accruals,” or “beta” may appear confusing. Do not rush through them. Build a quick glossary as you study. Once you use these terms in examples and practice questions, they will stick naturally.

    2. Accounting Concepts

    Many candidates find accounting to be the toughest subject initially. Focus on the logic rather than the format. Learn how transactions flow through financial statements. If possible, watch short explainer videos or attend structured sessions that connect accounting to business reality.

    3. Quantitative Methods

    The math is not advanced, but it requires attention to detail. You will deal with statistics, discounting, and probability. Use spreadsheets to practice calculations and visualise what formulas do. Once you see how the numbers behave, the fear of formulas fades.

    How to Bridge the Knowledge Gap

    Here are some practical steps to build comfort quickly.

    1. Start Early with the Basics
       Spend the first few weeks understanding financial statements and time value of money. These two topics are used everywhere in the CFA curriculum.
    2. Use the Right Study Order
       If you are a beginner, do not start with Derivatives or Fixed Income. Begin with Ethics, Quantitative Methods, and Financial Reporting. That sequence builds a strong foundation.
    3. Focus on Understanding, Not Memorization
       Ask “why” behind every formula. For instance, why does compounding matter? Why is discount rate linked to risk? This habit converts facts into intuition.
    4. Join a Study Group or Mentorship Program
       Interaction speeds up learning. When you explain a topic to others, you identify your own gaps. MidhaFin’s study groups and doubt-clearing sessions are excellent for this.
    5. Regularly Practice Questions
       Conceptual clarity grows through application. After every topic, solve 15-20 questions. Review explanations carefully. The CFA exam rewards reasoning, not memorized answers.
    6. Link Finance to Real-World News
       Read market summaries or company reports occasionally. You will begin to connect theory to practice, which is the essence of becoming a finance professional.

    How Candidates from Non-Finance Backgrounds Perform

    Interestingly, the CFA Institute’s own data shows that many successful candidates come from non-finance backgrounds, particularly engineering and economics.

    Why? Because analytical thinking and problem-solving matter more than prior subject exposure. Engineers, mathematicians, and statisticians often find the quantitative parts intuitive. Those from commerce or business degrees may grasp accounting faster. Each background has strengths.

    The CFA program equalises the rest. Over time, everyone builds a balanced understanding across ethics, economics, analysis, and portfolio management.

    The Value of a Non-Finance Perspective

    There is also an advantage to entering CFA without formal finance education. You approach topics with fresh logic instead of assumptions.

    For instance:

    • An engineer studying portfolio optimization sees it as a systems problem of risk and return.
    • An economist views market cycles through data relationships.
    • A computer science graduate may see quantitative finance as an extension of algorithms.

    These diverse approaches enrich your understanding. Modern finance values multidisciplinary thinking, which includes the ability to apply logic, statistics, and technology together.

    What You Gain from the CFA Journey

    Regardless of your background, the CFA program builds the same core skill set:

    • Ethical and professional reasoning.
    • Financial analysis and interpretation.
    • Understanding of global investment markets.
    • Ability to communicate financial insight clearly.

    These are transferable skills. Whether you become a portfolio analyst, risk manager, consultant, or entrepreneur, this foundation adds credibility and structure to your decision-making.

    Final Takeaway

    You do not need a finance background to pursue the CFA charter. You need persistence, curiosity, and a clear study plan.

    Think of the CFA journey as a bridge from where you are to where you want to be. The early steps may feel steep, but every topic builds on the last. Within months, you start thinking like an analyst. The transformation from learning terms to applying logic makes the CFA experience truly rewarding.

    Stay patient, stay structured, and stay curious. The finance background can wait. The mindset cannot.

  • CFA Scholarships: Complete Guide for CFA Candidates

    CFA Scholarships: Complete Guide for CFA Candidates

    If the cost of the CFA Program feels heavy, scholarships from CFA Institute can make it easier to begin your journey. This guide covers all available scholarships, how they work, who is eligible, and what you must know before you apply.

    What Are CFA Scholarships

    CFA Institute offers scholarships to make the CFA Program more accessible. Each scholarship waives the one-time enrollment fee and provides a discounted registration fee for an exam.

    Every award helps qualified individuals start or continue their CFA studies while maintaining the same high standards of ethics, education, and professionalism.

    Types of CFA Scholarships

    Let us look at the main scholarships currently offered by CFA Institute.
    (For official details, visit CFA Institute Scholarships.)

    1. Access Scholarship

    • For individuals who may not be able to afford the program fees.
    • You must not be currently registered for a CFA exam or waiting for results.
    • Covers one exam cycle only.
    • If awarded, you receive a waived enrollment fee and a reduced registration fee.
    • If you do not use the scholarship before it expires, you will not be eligible for future awards.

    Learn more: Access Scholarship

    2. Student Scholarship

    • For students currently enrolled at a CFA-affiliated university.
    • You must not be registered for any upcoming exam or waiting for your result.
    • You apply through your university’s CFA coordinator.
    • It also includes a waived enrollment fee and a discounted registration fee.

    Learn more: Student Scholarship

    3. Professor Scholarship

    • For full-time professors or qualified administrators who teach a minimum number of credit hours each term.
    • You must not be currently registered for a CFA exam or waiting for results.
    • It allows academic professionals to experience and share the CFA Program with their students.

    Learn more: Professor Scholarship

    4. Regulator Scholarship

    • For employees of central banks, financial regulators, stock exchanges, or government agencies that oversee the financial markets.
    • You must not be registered for an exam or awaiting results.
    • Includes the same fee benefits as other scholarships.

    Learn more: Regulator Scholarship

    General Rules and FAQs

    CFA Institute outlines clear rules for all scholarships. Here are the key points:

    • You cannot apply for more than one scholarship at a time.
    • You must wait until you receive an award decision before applying again.
    • If you are awarded a scholarship, you must register, schedule, and sit for the exam before applying for another.
    • If you fail to use your scholarship before it expires, you will not be eligible for future ones.
    • The discounted fee appears on the final registration page before payment.
    • You can apply multiple times across cycles as there is no limit on the number of attempts.

    For complete FAQs, refer to Scholarship FAQs on CFA Institute.

    How to Apply for a Scholarship

    Here is a simple plan you can follow.

    1. Choose the right scholarship
       Check which category fits your profile: Access, Student, Professor, or Regulator.
    2. Read eligibility rules carefully
       Go through the CFA Institute’s individual scholarship page to confirm that you qualify.
    3. Apply through the CFA Institute website
       Create or log in to your CFA Institute account and complete the online application.
    4. Submit required documents
       Some scholarships need proof of employment, university enrollment, or financial status.
    5. Wait for your result
       The outcome is sent to your registered email address. If awarded, you can use the discount for your next registration.

    Important Dates and Deadlines

    Each scholarship has its own application window.
    CFA Institute updates these timelines regularly, so you should check the official CFA Scholarship Dates page before submitting.

    We recommend marking your calendar at least a month before the deadline so that you have time to prepare your essay or supporting documents.

    How to Write a Strong Scholarship Application

    Your essay or statement should reflect your motivation for pursuing the CFA charter. Avoid generic lines like “I want to learn more about finance.” Instead, share your personal story or the reason you chose the CFA path.

    Keep it short, honest, and focused on how the CFA Program connects with your goals.
    For a detailed structure, visit our internal guide: How to Write a CFA Scholarship Essay.

    Common Mistakes to Avoid

    • Registering for an exam before applying for a scholarship.
    • Submitting incomplete information or missing documents.
    • Reusing old essays without updating details.
    • Waiting until the last day to apply.

    Small errors can disqualify your application, so always double-check your submission before hitting submit.

    Quick Recap

    • Four key scholarships: Access, Student, Professor, Regulator.
    • All waive the enrollment fee and discount the exam registration fee.
    • You cannot hold multiple scholarships at once.
    • Apply directly on the CFA Institute website.
    • Watch your email for decisions and use your scholarship before it expires.

    Conclusion

    Scholarships are one of the best ways to start your CFA journey with less financial pressure. Read the official pages carefully, prepare your application early, and stay honest in your essay. It is worth the effort.

    For more free CFA resources, visit cfa.midhafin.com.

  • How to Write a Winning CFA Scholarship Essay: A Step-by-Step Guide for Finance Aspirants

    How to Write a Winning CFA Scholarship Essay: A Step-by-Step Guide for Finance Aspirants

    Earning the CFA Charter is a serious goal. It opens doors in investment management, financial analysis, and research. It also proves that you have the discipline and knowledge to succeed in one of the most respected areas of finance. The only challenge is that it is both demanding and expensive.

    For many candidates, the CFA Access or Student Scholarship is a real opportunity. It reduces the exam fee to a much lower amount and gives motivated applicants a fair chance to move forward in their CFA journey without being stopped by financial limits.

    But the scholarship is not guaranteed. The Access Scholarship is partly based on a lottery system. This means that even with a strong essay, there is still an element of luck involved. Still, your essay matters a lot. It is your chance to show who you are, what you hope to achieve, and why you are serious about earning the CFA Charter.

    This guide will help you write an essay that feels real, organized, and confident, giving you the best possible chance once your application is in the selection pool.

    1. Start with Your Story and Long-Term Goal

    Every strong essay begins with your story. Think about when you first became interested in finance. Maybe you grew up around people who ran a business, or maybe you followed market news and wanted to understand how investments work. You do not need to make it sound dramatic or emotional. A simple, honest story that shows where your interest started is enough.

    Then, connect that story to your long-term career goal.

    Example:

    “My interest in finance started during my undergraduate studies when I learned how markets influence the overall economy. I became curious about how investment decisions can shape companies, communities, and industries. My long-term goal is to work in financial research and portfolio management, helping clients make informed and responsible investment decisions.”

    This introduction gives your essay direction. It tells the committee where your motivation comes from and what you hope to achieve.

    2. Show What You Have Done So Far

    Once you explain your interest, show how you have worked toward that goal. The committee wants to see that you have put effort into building your foundation.

    Talk about your degree, work experience, or any academic projects related to finance. Mention internships, online courses, or clubs that helped you learn more about investment or financial analysis. This shows that your interest is backed by real action.

    Example:

    “To strengthen my knowledge, I earned a degree in economics and completed courses in valuation and portfolio theory. During my final year, I joined my university’s investment club, where I worked with a team to analyze real companies for mock portfolios. These experiences helped me develop a stronger understanding of markets and confirmed that I wanted to build a career in finance.”

    This part of your essay gives credibility. It shows that you have taken your goals seriously and are not just starting from curiosity.

    3. Explain Why the CFA Program Fits Your Path

    Now that you have shown your progress, explain why the CFA Program is the right next step. Avoid copying phrases from the CFA website. Instead, describe how the program connects to your specific goals.

    You could say something like:

    “The CFA Program combines technical knowledge with ethical responsibility, which I believe is essential in today’s financial world. I want to strengthen my analytical and decision-making skills while following a strong professional code of ethics. Because the CFA Charter is globally recognized, it also offers opportunities to grow in an international setting, which is important for the kind of career I want to build.”

    This section helps the committee see that you understand the program’s value and that it fits naturally into your professional journey.

    4. State Your Reason for Applying for the Scholarship

    This part should be short and clear. You do not need to go into personal hardship or emotional detail. The goal is to show that financial help would make a meaningful difference without making it the center of your essay.

    Example:

    “Covering the full exam fee is a challenge at this stage of my career. Receiving the scholarship would allow me to focus fully on my preparation and continue working toward my goal of earning the CFA Charter without financial strain.”

    Keep it simple and factual. It shows that you understand your circumstances and that you are ready to make the most of the opportunity.

    5. Show Your Commitment and How You Will Contribute

    The CFA Institute values candidates who want to make a positive impact, not just advance their own careers. End your essay by explaining how you plan to use your CFA knowledge to help others or improve the profession.

    Example:

    After completing the CFA Program, I want to share what I learn with students and early-career professionals who are interested in finance. I also plan to take part in financial literacy programs that help individuals understand investing and manage money responsibly. In the long run, I hope to work on projects that promote ethical investment and transparency in corporate governance.

    This ending leaves a strong impression because it shows that your goals are not just personal. You want to make a difference.

    6. Understand That Luck Plays a Role

    It is important to stay realistic. The CFA Access Scholarship process includes a random selection element. That means even a great essay might not guarantee success. But the essay is still the one part you can control. It reflects your professionalism, sincerity, and preparation.

    You can think of it like investing. You cannot control the market, but you can control your research, your analysis, and your discipline. The same principle applies here. Luck decides the outcome, but effort increases your chances.

    If you do not receive the scholarship the first time, do not give up. Many people apply again and succeed on their second attempt. Treat each application as practice and keep improving your essay.

    7. Simple Tips That Make a Big Difference

    Before you submit your essay, keep these practical points in mind:

    • Keep your essay between 400 and 600 words, or slightly more if allowed.
    • Write clearly. Avoid unnecessary financial jargon or complex vocabulary.
    • Use examples that show your experiences instead of making general statements.
    • Read your essay out loud to check if it sounds natural.
    • Proofread carefully for grammar and spelling mistakes.
    • Ask someone you trust, such as a mentor or colleague, to review it.
    • Stay honest. The committee can tell when someone writes sincerely.

    These details may sound small, but they make your essay stronger and more authentic.

    8. Final Thoughts

    A CFA scholarship essay is more than a request for financial help. It is your chance to show that you understand what the CFA Program stands for and that you are ready to live up to its standards.

    You cannot control luck, but you can control how well you prepare and how clearly you present your goals. A strong essay shows self-awareness, discipline, and integrity – the same qualities that define successful CFA Charterholders.

    Take your time to think about your journey and what drives you. Write with clarity and confidence. Even if the result depends partly on chance, your essay will reflect your effort and determination to earn a place in the CFA community.