Topic 9 of 10 • CFA Level 1

Alternative Investments

Private equity, real estate, hedge funds, commodities

7
Subtopics
22
Learning Outcomes
7-10%
Exam Weight

Topic Overview

Alternative Investments is one of the 10 major topic areas in the CFA Level 1 curriculum, representing approximately 7-10% of the exam. This topic area covers 7 key subtopics that form the foundation of alternative investments knowledge required for investment professionals.

Understanding alternative investments is essential for CFA candidates as it provides the fundamental concepts needed to analyze financial markets and make informed investment decisions. This topic area includes 22 specific learning outcomes that candidates must master for the exam.

Subtopics in Alternative Investments

1

Alternative Investment Features, Methods, and Structures

3 learning outcomes

2

Alternative Investment Performance and Returns

2 learning outcomes

3

Investments in Private Capital: Equity and Debt

3 learning outcomes

4

Real Estate and Infrastructure

4 learning outcomes

5

Natural Resources

3 learning outcomes

6

Hedge Funds

3 learning outcomes

7

Introduction to Digital Assets

4 learning outcomes

Study Tips for Alternative Investments

Recommended Approach

  • • Start with understanding key concepts before memorizing formulas
  • • Practice calculations with real-world examples
  • • Review learning outcomes to ensure complete coverage
  • • Take topic-specific practice quizzes regularly

Key Focus Areas

  • • Understand how this topic connects to other CFA areas
  • • Focus on high-weight subtopics for maximum impact
  • • Review past exam questions for this topic
  • • Create summary notes for quick revision

Ready to Master Alternative Investments?

Practice with our comprehensive question bank featuring questions on all 7 subtopics and 22 learning outcomes.

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Derivatives
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Portfolio Management

Other CFA Level 1 Topics

Ethical and Professional Standards
15-20%
Quantitative Methods
6-9%
Economics
6-9%
Financial Statement Analysis
11-14%
Corporate Issuers
6-9%
Equity Investments
11-14%
Fixed Income
11-14%
Derivatives
5-8%
Portfolio Management
8-12%