Products & Characteristics

Main topics of study:

The Concept of Investment:

  • Risk & Reward
  • Savers & Borrowers
  • Different Types of Investment Products & Their Returns

Cash & Non-Marketable Investments:

  • Banks
  • Building Societies
  • TESSA’s
  • National Savings Products & Their Returns

Gilt-Edged Stock:

  • The Concept of a Gilt
  • Its Key Features
  • Different Types of Gilt
  • The Concept of ‘Yield’ & Its Application to Gilts
  • Different Types of Gilt Yield
  • Corporate Stock
  • Debentures

Shares:

  • Key Features & Characteristics
  • Preference Shares
  • Ordinary Shares
  • The Return on Shares
  • Dividends
  • Capital Gains
  • Taxation of Capital Gains *

Unit Trusts:

  • Features & Types
  • Investment Trusts – Their Characteristics & Comparison with Unit Trusts
  • Personal Equity Plans (PEP’s)

Life Assurance:

  • Whole Life
  • Endowment Assurance
  • Other Types of Assurance Products Including Annuities, Returns & the Concept of Bonuses in Assurance

Pension Products:

  • Occupational Pensions
  • Personal Pensions
  • AVC’s
  • Exchange Rate Risk & Rewards
  • ADR’s
  • Overseas Investment Vehicles

Investment in Property:

  • Costs & Returns
  • Mortgages
  • Investment in Possessions – Stamps, Coins, Fine Wines etc.

Personal Portfolio Planning:

  • Meeting Customer’s Needs
  • Their Financial Situation & Future Needs
  • Risk Aversion
  • Liquidity & Security

* Candidates will be expected to be familiar with the new capital gains tax provisions introduced in the 1998 UK budget.