Collective Investments and Structured Products
Compare fund companies, open and closed structures, portfolio analysis and formula-based returns.
How to prepare for the Investment Advice Diploma
Build UK regulation, integrity, investment, risk and tax first; then apply those foundations to the one technical option aligned with your role. The original multiple-choice practice tests knowledge, calculations and advisory judgement without reproducing recalled or secure CISI questions.
Core concepts
Concept 1
Distinguish open-ended and closed-ended structures.
Exam cue: Identify legal vehicle.
Concept 2
Analyse charges, liquidity, valuation and performance.
Exam cue: Separate NAV from traded price.
Concept 3
Map structured-product payoffs and issuer risk.
Exam cue: Trace payoff and counterparty exposure.
Risk pitfalls and guardrails
Treating a discount to NAV as guaranteed profit.
Guardrail: Do not combine the five displayed units into one exam, infer permission from qualification, use stale annual figures or ignore the selected technical route.
Ignoring dilution or swing pricing.
Guardrail: Do not combine the five displayed units into one exam, infer permission from qualification, use stale annual figures or ignore the selected technical route.
Assuming capital protection is government guaranteed.
Guardrail: Do not combine the five displayed units into one exam, infer permission from qualification, use stale annual figures or ignore the selected technical route.
Memory anchors
NAV
The value of a collective investment's assets less liabilities, usually expressed per unit or share.
Investment trust discount
The amount by which a closed-ended fund's market price is below its NAV per share.
Open-ended fund
A fund that expands or contracts as units or shares are issued and cancelled.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
What is the role of an authorised corporate director in an OEIC?
What is the depositary's core role for an authorised fund?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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