Investment Funds in Canada (IFIC) -
Chapter 1 with correct answers to pass
What is a mutual fund? - correct answer ✔✔It's an investment vehicle that pools contributions from
investors and invests these proceeds into a variety of securities, including stocks, bonds, and money
market instruments.
What are the characteristics of Mutual Funds? - correct answer ✔✔- Professionally managed
- Diversified portfolio of securities
- Low cost
What is the value in licensing? - correct answer ✔✔- Professional development
- Level of competence
- Ethical manner
- Regulators' responsibility
Types of Responsibility - correct answer ✔✔- Legal
- Ethical
- Professional
Legal responsibility - correct answer ✔✔Make legal responsibilities clear, an investment is suitable if it
fits the client's goals, financial condition, personal circumstances, investment knowledge and risk
tolerance. All provincial securities act make this legal responsibility clear.
Ethical Responsibility - correct answer ✔✔You must place your client's needs before your own needs,
such as reaching a sales target or those of your dealer.
Professional Responsibility - correct answer ✔✔You must provide the best client service possible.
Chapter 1 with correct answers to pass
What is a mutual fund? - correct answer ✔✔It's an investment vehicle that pools contributions from
investors and invests these proceeds into a variety of securities, including stocks, bonds, and money
market instruments.
What are the characteristics of Mutual Funds? - correct answer ✔✔- Professionally managed
- Diversified portfolio of securities
- Low cost
What is the value in licensing? - correct answer ✔✔- Professional development
- Level of competence
- Ethical manner
- Regulators' responsibility
Types of Responsibility - correct answer ✔✔- Legal
- Ethical
- Professional
Legal responsibility - correct answer ✔✔Make legal responsibilities clear, an investment is suitable if it
fits the client's goals, financial condition, personal circumstances, investment knowledge and risk
tolerance. All provincial securities act make this legal responsibility clear.
Ethical Responsibility - correct answer ✔✔You must place your client's needs before your own needs,
such as reaching a sales target or those of your dealer.
Professional Responsibility - correct answer ✔✔You must provide the best client service possible.
