CAIA Level 1 vs CFA Level 1: Which Should You Take in 2025?

Kateryna Myrko
Jul 1
4 min read

In an increasingly competitive finance landscape, professional credentials can be the difference between standing out and blending in. Two of the most recognized designations for investment professionals are the Chartered Alternative Investment Analyst (CAIA) and the Chartered Financial Analyst (CFA). While both credentials carry weight, they serve different niches and demand different levels of commitment. This article provides a comprehensive, up-to-date (2025) comparison of CAIA Level 1 and CFA Level 1, helping you decide which exam aligns best with your career goals, timeline, and resources.

1. Program Overview CAIA Level 1 , CFA Level 1

1.1 CAIA Level 1

The CAIA Program focuses exclusively on alternative investments—including hedge funds, private equity, real assets, and structured products. Level 1 emphasizes foundational knowledge, ethics, and alternative investment strategies. Candidates typically complete the two‐level program in 12–18 months with an expected study time of about 200–250 hours. CAIA Level 1 , CFA Level 1

Curriculum Topics:
- Professional Standards & Ethics
- Introduction to Alternative Investments
- Real Assets
- Private Equity & Private Debt
- Hedge Funds & Managed Futures
- Structured Products & Financial Derivatives
Exam Windows 2025 (per CAIA Institute schedule):
- March 1–12, 2025 (results released ~2 months later)
- September 1–12, 2025

1.2 CFA Level 1

The CFA Program covers a broad investment skillset, from ethics and quantitative methods to equity analysis and portfolio management. Level 1 tests fundamental tools and concepts. Candidates often spend 300–350 hours preparing, and the program spans a minimum of 18 months (given the quarterly exam windows).

Curriculum Topics:
- Ethics & Professional Standards
- Quantitative Methods
- Economics
- Financial Reporting & Analysis
- Corporate Finance
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
- Portfolio Management & Wealth Planning
Exam Windows 2025:
- February 11–15, 2025
- May 13–17, 2025
- August 12–16, 2025
- November 11–15, 2025

2. Cost Comparison

Expense	CAIA Level 1	CFA Level 1
Enrollment Fee	$400 (one-time for first-time CAIA)	$350 (one-time for program enrollment)
Early Registration	$995	$990
Standard Registration	$1,395	$1,290
Retake Fee	$795	$1,290 (standard)
Total Level 1 Range	$1,445 – $2,434	$1,390 – $2,990

Note: Both programs offer student/scholarship discounts in specific regions—check respective institute websites for details.

3. Pass Rates & Difficulty

3.1 CAIA Level 1 Pass Rates

Recent data show fluctuating pass rates as candidate volume grows and curriculum evolves:

March 2025: 48%
September 2024: 45%
All-time average: ~60%, though actual charter completion (both levels) is ~40%

Preparation Tip: Practice with mock exams and question banks; reliance on reading alone often leads to sub-par performance.

3.2 CFA Level 1 Pass Rates

The CFA Level 1 remains challenging, with slight improvements in 2025:

February 2025: 45%
May 2025: 45%
November 2024: 43%
August 2024: 44%

Preparation Tip: The Institute recommends 300 hours of study and provides a practice pack of 1,000 questions and mock exams.

4. Curriculum Depth & Focus

Aspect	CAIA Level 1	CFA Level 1
Specialization	Alternative investments	Broad investment toolkit
Ethics Weighting	~10%	15%
Quantitative Methods	Basic (introductory)	Significant (time value, statistics, regressions)
Derivatives & Alternatives	Minor—overview within alternatives section	Dedicated 5–10% coverage per asset class
Portfolio Mgmt	Integrated into alternatives	~5%
Study Hours (Est.)	200–250	300–350

Depth vs Breadth: CAIA drills deep into alternative strategies, whereas CFA offers a panoramic view of global finance.

5. Career Pathways & ROI

5.1 CAIA

Ideal for roles such as:

Alternative investment analyst
Private equity associate
Hedge fund researcher
Real assets strategist

Average Salary U.S.: $125,000–$175,000 (varies by role & experience)

5.2 CFA

Suited for:

Equity & credit research
Portfolio management
Investment banking
Corporate finance

Average Salary U.S.: $110,000–$160,000 for charterholders

Return on Investment: Though the CFA entails a higher total cost and study load, its global recognition often translates to broader opportunities. CAIA can yield quicker entry into the alternatives niche with less time commitment.

6. Time Commitment & Flexibility

CAIA:
- 2 exams × 200–250 hours
- Complete in 12–18 months
- Twice-yearly exam windows for each level
CFA:
- 3 exams × 300+ hours
- Minimum 18 months to charter (assuming quarterly attempts)
- Four exam windows for Level 1 annually

Feature	CAIA	CFA
Exam Frequency	2×/year	4×/year
Time to Completion	1–1.5 years	≥1.5 years (if all passes)
Study Hours Total	~400–500	~~900–1,050
Scheduling Flexibility	Moderate	High

7. Which Should You Choose in 2025?

Career Focus
- Alternatives: CAIA is tailor-made.
- Generalist: CFA opens doors across equities, fixed income, and corporate finance.
Time & Cost Constraints
- If you need faster credentialing with lower study hours, CAIA Level 1 (and Level 2) can be done in under 18 months for ~$3,000–$4,800 total.
- CFA requires a larger investment—both time (900+ hours) and money (up to $3,000/exam).
Geographic & Employer Recognition
- Global finance hubs (New York, London, Hong Kong) often prioritize CFA.
- Hedge funds, private equity firms, and real asset managers value CAIA expertise.
Pass Rates & Exam Strategy
- Both exams have sub-50% recent pass rates; disciplined preparation and practice exams are essential.
- CFA’s larger curriculum demands structured study plans; CAIA’s narrower focus may fit self-directed learners better.

8. Preparation Recommendations

Study Materials:
- Official curriculum (digital access included for CAIA)
- Third-party providers (Kaplan Schweser, Wiley, Bloomberg Exam Prep).
Mock Exams:
- CAIA: at least 4 full-length mocks.
- CFA: leverage the 1,000-question practice pack and third-party question banks.
Study Schedule:
- Begin 6 months ahead for CAIA; 9–12 months for CFA.
- Allocate 10–15 hours/week consistently.
Ethics Focus: Both certifications weigh ethics heavily—understanding real-world applications can boost scores significantly.

Conclusion

Deciding between CAIA Level 1 and CFA Level 1 boils down to your career aspirations, available resources, and preferred timeline.

Choose CAIA if you’re laser-focused on alternative investments and seek a faster, slightly less costly route.
Opt for CFA if you want broad investment expertise with the highest global recognition and are ready for a multi-year commitment.

Regardless of your choice, success demands rigorous study, strategic use of practice exams, and a clear understanding of how each credential aligns with your long-term goals. Good luck on your journey to achieving a top-tier investment designation in 2025!