Level 3 – This how I prepared and cleared it in the first attempt
1. First reading (Quick reading)– takes two weeks to do
2. Second reading (Active reading – note taking, highlights, understanding concept in depth,
visualization, memory palace) – I did it in 8 weeks
3. Third reading (Conceptualization – One page summary, mind maps – two weeks
4. Mocks – check what you got wrong, read – do mocks again
1) Read first whole syllabus – quickly – you are not going to remember 80% of it which is fine –
this first reading is just to get to know complete syllabus. You can use Schweser notes or direct
syllabus from CFAI. (I would suggest that use CFAI pdfs).
2)Second reading is active reading – This time read syllabus, highlight important points and write
notes in your own words (summarizing – drawing map – with simple words) will go long way –
because even with second reading you are going to forget 40 to 50%.
• Visualization – while take notes there are some concepts which are lengthy with many steps
and difficult to remember -I used visualization technique for it. For example – IPS for
individuals –
• Do the drawing with the notes –
this is really powerful technique –
For example – Parts of the IPS –
what to include in the IPS for the
individual – if you have simple
drawing then it is easy to
remember
• I kept forgetting the formula for
Modified rates – is it Mac divided
by 1+r or multiply by 1+r so I did
the drawing where I imagined
Macualay is standing on the bridge
and 1+ytm(or r) is below it – it is
silly but now I will remember it
forever.
• Memory palace – I used this for
things which had many steps – for
example in CME – problems with
formulating CME – I imagined my
mom’s house with my friends,
sister each with their unique
characteristics which can be similar
to problems (Let me explain more
– for example limitations of using
economic data is, it is always
delayed and keeps changing – use
someone there who is always late
to come to party and keeps
changing plan)
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• Using mnemonics to remember – you
can do drawing along with
mnemonics so that you can refer it
again and again.
• Use second language for few things to remember – For example in the trade execution I kept
forgetting why do we trade – so I used Hindi word to represent each trade reason, now I can
not forget it even if try.
• While reading, there are many concepts which are difficult to understand in the CFAI books
so what I did is I went ChatGPT – wrote that paragraph and asked it to explain it to me in
simple language, also I took that summary and pasted it in the pdf so that later on I can refer
it quickly. Also while reading pdf – highlight in different colors to grab your attention when
you will read it again.
• After finishing each section of reading second time – do end of chapter question for the
whole section. You may not be able to answer all – or you will get many wrong but still do
it. Make note of the question you got it wrong.
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• Most of the section has essay type of questions – now in the third level essay type question
is completely different ball game. Many people get this wrong – you need to mentally
prepare for the essay questions – how will you do it? Essay question are not essay questions
but kind of bullet point questions. With the second reading start answering this -
◦ Most important points to remember while answering this is – try to answer question
using minium words.
◦ For example if question in the fixed income asks which type of portfolio is better for the
fund – barbell, ladder, bullet and why? Then answer – Most appropriate portfolio is
Barbell – reason it has highest convexity That is all you should write. You can even
minimize it by just saying reason – highest convexity.
• Do essay questions in the pdf – so that you get
practice to write on computer with minimum
words – then check it to see what did you get
right.
3) Third reading – do this in two week
• For this I created one pdf which had all
the LOS – go through each chapters
LOS and write down short summary
(very short summary which can come
next to that point) – see if you
understand this point and able to write
about it, if not then read it and come
back write it.
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• Then create just one or two page mind maps – something like this – Use Colourful pen to
create shortest summary points. These would be really useful to refer to when you give
mocks and in the last weeks prior to exam.
Prepared by Rashida Jafri Date – 15 April 2023
4) As soon as you finish third reading start doing mocks
My take on the mocks are CFAI mocks are best – they are not very complicated – some prep
providers have very complicated mocks, if you do those mocks then you might loose your
confidence and it is not worth it.
Exam are not complicated or tricky
Third level is all about subjective opinion – for example in the fixed income you have two
institutional investor and it is possible that depending on each situation Bullet portfolio will be
better for one and Barbell might be better for another -
In depth knowledge of
Rote memorization of equation is bad – instead try
to go in depth of the equation
For the calculation questions CFAI says that we get full credit even if you just write answer and do
not write steps. I would suggest do not do that.
Write steps – that will solidify your own understanding and if your answer is wrong then at least
you will get partial credit for any steps which are correct.
But do not write long answers – you need to drill this in your head. Keep answers short and simple.
CFAI exams are not tricky or complicated.
How is level 3 different than level 2
1. Level 3 is subjective – so start preparing from day 1 as if you are practitioner (If you are
really practitioner then it is excellent) – Think from the real world point of view and do not
treat this like theory.
2. For example – individual wealth management has calculation of insurance – take your
friend, spouse or yourself do this calculation on that individual with all the possible real
data. For IPS – create IPS for your self, take any university and try to create IPS statement
for that real world university endowment.
3. There are fewer formulas in the level 3 – which is good but try to go in depth for each one.
4. Last but not least – while giving real exam flag questions which are difficult and move to
next question quickly. Do not spend lot of time on any single question. Time management is
good – keep watchful eye on time but do not be obsessed as you will get stressed if you keep
Prepared by Rashida Jafri Date – 15 April 2023
checking time again and again. I would stress this point a lot as I encountered first three
questions which were very difficult but luckily for me I had friend who had advised me on
this so I quickly kept moving to next question. It is possible to panic when you see first few
questions which are so difficult but do deep breathing and move on.
I did use IFT videos but it did not add much value. I also purchased Finquiz question set but again I
would suggest not to waste money on that. Instead purchase mocks (Bill Camp mocks are really
good) (Do not purchase mocks from prep providers which are very complicated).
That is all from me – hope you derive some value from this. All the very best.
Note: Please do not ask me for my hand written notes or mind maps – the whole idea of doing it
so you can understand each concept in depth. Reading my notes or mind maps will not help you.
Prepared by Rashida Jafri Date – 15 April 2023
