Studying CAIAbut want to make sure you’re doing everything you can to pass the exams? We have some great tips for studying, and retaining all the information you need to succeed.
1. Start as soon as you can
Time is not your friend when it comes to the CAIA exam. It takes, on average, 200 hours of study per level to get to grips with the whole curriculum. If you delay, or overestimate your ability to retain information, then you might find yourself in an uphill battle.
Start studying as soon as you can, that way you give yourself plenty of time to fully understand the material, get some exam practice in, and feel confident going into your exams.
2. Structure your study
Don’t just jump in, or switch from one topic to another, make a study plan and stick to it. You’ll find it much easier to concentrate on one topic at a time, for a structured amount of time, rather than trying to fit it in around everything else you do.
Plan for study time, don’t rely on it just ‘happening’.
3. Do practice questions, but don’t rely on them
It can be very tempting to just go over and over practice questions, until you’re getting the majority of them right, but it’s important to read and understand the underlying materials and concepts.
Make sure you back up your learning with some exam question practice, but it’s essential to attend classes, if that’s how you’re learning, or get stuck in to your books in your own time. Make sure you really understand what the questions are asking - not just the top level information.
4. Concentrate on your weaker areas
We all do it. It’s easier to work on things we know and understand, and push the harder bits to one side. Unfortunately you can’t do this with CAIA. The exams will cover everything - the bits you like, and the bits you don’t.
It’s important to put extra effort into the areas of the curriculum that you don’t feel comfortable with, or don’t find interesting. You don’t want to miss out on vital marks in the exam.
5. Know the format and weighting of your exam
You need to make sure you put in the appropriate amount of study for each area of the curriculum, depending on their exam weighting. Both CAIA level exams are multiple choice - 200 questions for Level 1 and 100 for Level 2, plus an essay portion.
Level 1
The Level 1 multiple choice exam is made made up of seven topics, with the following weighting:
- Professional Standards and Ethics: 15 - 25%
- Introduction to Alternative Investments: 20 - 28%
- Private Equity: 12 - 20%
- Real Assets: 11 - 17%
- Hedge Funds: 11 - 17%
- Structured Products: 10 - 14%
Level 2
The Level 2 exam has 100 multiple choice questions that make up 70% of the exam weight. The other 30% is made up of three essay questions, also called constructed response. The weighting is:
| CAIA Level 2 Topic | Multiple Choice Weight | Constructed Response Weight |
|---|
| Emerging Topics | 0% | 10% |
| Ethics, Regulation, and ESG | 0% | 10% |
| Models | 8-12% | 0-10% |
| Institutional Asset Owners and Investment Policies | 8-12% | 0-10% |
| Risk and Risk Management | 8-12% | 0-10% |
| Methods for Alternative Investing | 8-12% | 0-10% |
| Accessing Alternative Investments | 8-12% | 0-10% |
| Due Diligence and Selecting Strategies | 8-12% | 0-10% |
| Volatility and Complex Strategies | 8-12% | 0-10% |
Final thoughts
You’ll do well in the CAIAexams if you prepare thoroughly, learn the underlying concepts, set aside structured study time, and practice the exam questions. Don’t forget, we’re here to support you if you have any questions or problems.
Just get in touch with the Student Service team if you need any help (020 7920 3060 or citybookings@kaplan.co.uk). We also offer extra support to give the best chance of passing - with two days of classroom revision.
Best of luck!
FAQs
How much time does it take to study for the Level I CAIA® exam? CAIA Association recommends that candidates spend 200 hours studying for the CAIA exam.
How can I prepare for CAIA exam? ›
Although there are self-directed and motivated candidates who are able to pass the CAIA exam by studying on their own and taking a few practice exams online, most do not. To ensure you pass the CAIA exam, enroll in prep courses (either in class or online) and take as many practice exams as you can.
How hard is it to pass CAIA? ›
How difficult is the CAIA exam? Slightly more than half of those who take the exam pass it, which is a better average than the CFA® Program exam and the FRM® exam. However, taking both levels of the exam isn't exactly a walk in the park.
Is CAIA more difficult than CFA? ›
Some argue that the CFA exam stands as the more difficult to pass as it covers more content and historically has reflected lower passing rates than that of the CAIA. Still, nothing stops you from earning both designations in order to expand your expertise as an investment professional.
Can you skip CAIA Level 1 if you have CFA? ›
*As a CFA member, you may be eligible for a CAIA Level I exam waiver toward earning the CAIA designation and enter the program as a Level II Candidate!
What is the best prep course for CAIA? ›
Compare Providers
| Company | Why We Picked It | Cost Per Level |
|---|
| Kaplan Schweser | Best Overall | $499 to $999 |
| UpperMark | Best Study Materials | $499 to $979 |
| Varsity Tutors | Best One-on-One Instruction | Varies; $93 to $105 per hour |
75% of CAIA candidates who earn their CAIA Charter do so in 12-18 months. In contrast, CFA candidates take 4 years on average to pass 3 levels of the CFA exams, and is a Masters equivalent degree.
What is the best question bank for CAIA exam? ›
UpperMark™ TestBank is a sophisticated software application designed to enhance your comprehension of the CAIA exam material. Using over 1,900 sample exam questions, TestBank creates customizable Practice Exams and is the only product on the market to generate full-length Mock Exams!
When should I start studying for CAIA? ›
Start as soon as you can
Time is not your friend when it comes to the CAIA exam. It takes, on average, 200 hours of study per level to get to grips with the whole curriculum.
Is CAIA Level 1 or 2 harder? ›
CAIA L2. CAIA L2 preparation was more intense than Level 1. CFA Charterholders can by-pass Level 1 and go straight to Level 2 due to the overlap in the curriculum. This makes L2 more competitive as CFAs are experienced exam takers and know some of the curriculum already.
Since the CAIA covers investments that aren't equities or bonds, the title could be considered superfluous for many financial professionals. Some financial advisors and brokers can survive without it, as can certain analysts, but most analytical professionals benefit from the CFA designation.
Is CAIA exam worth it? ›
Why Become a CAIA? While the CAIA certification is not one of the industry's better known credentials, it carries weight. As the alternative investment market picks up steam, an increasing number of businesses, firms, and individual investors seek financial professionals who understand this space well.
Is CAIA equivalent to a masters degree? ›
What is CAIA? Chartered Alternative Investment Analyst (CAIA) is a professional designation for investment professionals offered by the CAIA Association. It is a global certification that is estimated to also be a Masters degree equivalent.
Is CAIA in demand? ›
Growth in Alternative Investments: With increasing investor interest in alternative assets, the demand for CAIA charterholders is on the rise. This trend is expected to continue as portfolios diversify beyond traditional stocks and bonds.
How much do CAIA charterholders make? ›
The average salary for CAIA charterholders varies, depending on several factors like their geographic location, experience, and specific sector of focus. According to various industry surveys and data, CAIA professionals can expect to earn an average base salary of $109,000 or more per year.
How many hours do you need to study for CAIA Level 2? ›
CAIA Association recommends you aim to spend at least 200 hours preparing for the Level II exam. Schweser's Prepare, Practice, Perform® methodology gives you the structure you need to get the most out of your study time.
How many hours does the CAIA take? ›
It is comprised of 200 multiple-choice questions. It is a 4-hour exam, administered in two 2-hour sessions, with an optional 30-minute break between Sections 1 and 2 of the exam.
How many months to study for CAIA level 2? ›
How Much Time Does It Take to Study for the Level II CAIA® Exam? CAIA Association reports that the average Level II candidate studies for at least 200 hours. It's important that you do your studying over a period of several months, and that is why registration opens five months before the exam window opens.
How long does it take to pass CAIA? ›
75% of CAIA candidates who earn their CAIA Charter do so in 12-18 months. In contrast, CFA candidates take 4 years on average to pass 3 levels of the CFA exams, and is a Masters equivalent degree. Hope you found the CAIA pass rates information and various data benchmarks above useful!
