CAIA Level I
Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions.
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Start your CAIA Level I practice
MiloPrep will cover Level I with adaptive practice mapped to the published content areas.
Who should prioritise Level I
Fits you if
- Professionals in private markets, hedge funds, or alternatives allocation who want a charter specialised in alternatives.
Skip if
- Candidates whose roles are pure public-markets equity research or household financial planning - CFA or CFP may fit better as the primary exam path.
Format at a glance
Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions. Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions.
Question format
Multiple choice
Duration
260 min
2 sessions
Questions
200
Sessions
2
CAIA Level I topic weights
Published weight ranges or scored-question allocations from the awarding body. Use them to budget study time - larger areas deserve calendar priority.
Level I
| Topic | Weight |
|---|---|
| CAIA Ethical Principles | 8–12% |
| Introduction to Alternative Investments | 20–28% |
| Real Assets | 14–20% |
| Private Equity | 8–12% |
| Private Debt | 12–16% |
| Hedge Funds | 15–19% |
| Digital Assets | 4–8% |
| Funds of Funds | 1–5% |
Sample Level I study sequence
Select a stage to see its purpose. This is not an official timetable. Repeat or shorten stages according to your baseline, work calendar, and timed practice results.
CAIA Ethical Principles
Weight 8–12%. Studying hedge-fund strategy names without practising the risk, liquidity, and fee mechanics that change the answer.
Keep your primary course aligned with the current syllabus, then use practice evidence to decide whether this stage needs more repetition.
Where CAIA practice should focus
Three high-leverage drills. If practice time is short, start here.
Fee and liquidity mechanics
Many Level I misses come from waterfall, lock-up, or redemption details rather than strategy labels.
Institutional constraint questions (Level II)
Practise how asset-owner constraints change the acceptable alternative allocation.
Due diligence checklists in writing
For constructed response, list the diligence steps the question asks for - no more, no fewer.
Navigate this exam
Level I learn articles(15)
Full CAIA learn index →- CAIA Ethical PrinciplesCAIA Ethical Principles has a published allocation of 8–12% in Level I: treat it as a decision rule plus timed practice, not vocabulary alone. Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions.
- Introduction to Alternative InvestmentsIntroduction to Alternative Investments has a published allocation of 20–28% in Level I: treat it as a decision rule plus timed practice, not vocabulary alone. Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions.
- Real AssetsReal Assets has a published allocation of 14–20% in Level I: treat it as a decision rule plus timed practice, not vocabulary alone. Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions.
- Private EquityPrivate Equity has a published allocation of 8–12% in Level I: treat it as a decision rule plus timed practice, not vocabulary alone. Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions.
- Private DebtPrivate Debt has a published allocation of 12–16% in Level I: treat it as a decision rule plus timed practice, not vocabulary alone. Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions.
- Hedge FundsHedge Funds has a published allocation of 15–19% in Level I: treat it as a decision rule plus timed practice, not vocabulary alone. Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions.
- Digital AssetsDigital Assets has a published allocation of 4–8% in Level I: treat it as a decision rule plus timed practice, not vocabulary alone. Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions.
- Funds of FundsFunds of Funds has a published allocation of 1–5% in Level I: treat it as a decision rule plus timed practice, not vocabulary alone. Tools and alternative asset classes. Two timed sections of 130 minutes; 200 multiple-choice questions.
- Hedge Fund Fee and Liquidity MechanicsLevel I traps: fee waterfalls and liquidity terms that change strategy comparison answers.
- Private Equity Deal StructuresEntry structures, leverage, and exit paths that Level I PE stems test beyond strategy names.
- Real Asset Valuation DriversIncome, cost, and market approaches for real assets — match the driver to the asset type.
- Private Debt Covenant AnalysisCovenant packages and seniority that Level I private-debt weight rewards over product labels.
- Digital Asset Risk TaxonomyOperational, market, and custody risks for digital assets in the Level I outline.
- Funds of Funds Diversification Trade-offsFee layering vs diversification benefits — Level I FoF stems punish one-sided answers.
- Ethics Case Application for AlternativesProfessional standards applied to alternatives fact patterns, not memorised code numbers alone.
How to read a CAIA hedge-fund risk stem
Setup
A Level I question describes a relative-value fund with monthly redemptions, a gate, and rising prime-broker margin. Choices ask which risk rose most.
How to read it
Ignore the strategy brand. Map liquidity terms and leverage first. The keyed answer usually follows from the constraint that changed, not from the strategy textbook paragraph.
Takeaway
Alternatives questions reward constraint reading. Strategy names are often decoration.
Troubleshooting common CAIA study problems
If your mocks are stuck, match the symptom and change the next week. do not just do more of the same questions.
Level I strategy flashcards are not lifting scores
Likely cause
Memorising names without fee, risk, and liquidity application.
Next step
Rewrite each strategy card with one risk, one liquidity feature, and one fee feature.
Level II constructed responses feel unstructured
Likely cause
Writing narrative instead of checklist answers.
Next step
Practice command-word templates: recommend, justify, list three risks.
Digital assets and FoF always miss
Likely cause
Skipping “small” topics that still appear every window.
Next step
Schedule two short weekly blocks just for those handbook chapters.
Level I study-week checklist
- List published weights for Level I
- Drill Multiple choice under partial timing
- Attack failure mode: Studying hedge-fund strategy names without practising the risk, liquidity, and fee mechanics that ch
- Run one block near 260 minutes
- Log misses and retest within 72 hours
If level i strategy flashcards are not lifting scores, Rewrite each strategy card with one risk, one liquidity feature, and one fee feature.
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Level I FAQs
- How many levels is CAIA?
- Two: Level I and Level II.
- What is the Level I format?
- 200 multiple-choice questions across two sections of 130 minutes each, per the CAIA Exam Candidate Handbook.
- Does Level II include constructed responses?
- Yes. Level II includes 100 multiple-choice questions plus three constructed-response sets. Some topics are constructed-response only.
Next steps
Level I practice
Blueprint explorer and sample questions for Level I.
Open practiceCAIA exam hub
Full CAIA overview, parts, and study sequence.
Open hubHow to study
A practical study approach for CAIA candidates.
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