How the CAIA exams work: Level I and Level II explained
A clear overview of the two CAIA exam levels, official structure and practical study implications for working candidates.
The CAIA Charter Program is built around two exam levels: Level I and Level II. Both levels focus on alternative investments, but they do different jobs. Level I builds the foundation. Level II asks you to apply that knowledge in a more portfolio-focused and judgement-heavy way.
For learners, the practical question is not only "what is in the exam?" It is also "how does the exam format change the way I should study?" The answer differs by level.
Who this article is for
This guide is for learners who are planning a CAIA route and want a plain explanation of the two levels. It is especially useful if you are deciding when to start, how to schedule study around work or whether your current knowledge is closer to Level I or Level II.
It is also useful if you have seen short summaries online and want to separate stable official facts from claims that need checking each exam cycle.
What you need to know
The 2026 CAIA exam handbook says the Level I exam consists of 200 multiple-choice questions. The exam is divided into two sections. In each section, Level I candidates answer 100 multiple-choice questions.
The same handbook says Level II is made up of 100 multiple-choice questions and three sets of constructed-response, essay-type questions. Level II has a different testing style because part of the exam asks candidates to type responses rather than select answers only.
The handbook describes the total exam session time as five hours, including the nondisclosure agreement, tutorial, two 130-minute exam sections and an optional break. Candidates should still check the latest CAIA candidate guidance before booking because operational rules can change.
The content also differs. Level I covers CAIA Ethical Principles, Introduction to Alternative Investments, Real Assets, Private Equity, Private Debt, Hedge Funds, Digital Assets and Funds of Funds. Level II covers CAIA Ethical Principles, Institutional Asset Owners, Asset Allocation, Risk and Risk Management, Methods and Models, Accessing Alternative Investments, Due Diligence and Selecting Managers, Volatility and Complex Strategies, Universal Investment Considerations and Emerging Topics.
That is the main route shift. Level I asks whether you have the alternatives map. Level II asks whether you can use that map in institutional, allocation, risk and due diligence situations.
Key points
CAIA has two exam levels: Level I and Level II.
Level I is multiple choice and foundation-led.
Level II combines multiple-choice questions with constructed-response questions.
Level II places more emphasis on application, due diligence, asset allocation and professional judgement.
CAIA curriculum materials are updated annually and are exam-year specific.
Candidates should use the official CAIA handbook and curriculum companion for their exam year.
How to prepare, decide or use the guidance
For Level I, your study plan should prioritise broad coverage and active recall. The syllabus spans several alternative investment areas, so you need a reliable way to revisit topics repeatedly. Multiple-choice practice is useful, but it should not become guesswork. Review every wrong answer and explain why the correct answer is better. Each level has its own guide: what Level I tests and what changes at Level II.
For Level II, add written explanation practice. Constructed-response questions require you to organise an answer, use the right terminology and focus on the question asked. This is different from recognising the best option in a list. Your preparation should include short written responses, timed practice and review of whether your answer is direct enough.
For both levels, avoid relying on old curriculum summaries. The CAIA Association says curriculum materials are exam-year specific and updated regularly. Treat the official curriculum companion as your map, then use practice to test whether you can apply the learning objectives.
As a practical checkpoint, your study should change before you sit Level II. A Level I-ready candidate can explain a strategy and answer multiple-choice questions accurately. A Level II-ready candidate can also write a concise answer explaining why a portfolio, access, risk or manager-selection issue matters.
How Qualifico helps
Qualifico helps learners practise CAIA in shorter, more focused sessions. For Level I, flashcards and exam-style questions can help you build recall across a broad set of asset classes and concepts. For Level II, score trends and weak-area prioritisation can help you decide which areas deserve written-response review.
The aim is not to replace the official curriculum. The aim is to make your study more active, more measurable and easier to maintain around work.
Next steps
If you are still deciding whether the route fits, the practical guide to CAIA covers who the qualification suits before you commit to an exam window. The CAIA resource hub has the guides for each level.
Sources checked
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