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.

Reading List

Main Text:
How to Read the Financial Pages by Michael Brett (Random House Business Books)

Alternative Texts and Further Reading:
Financial Services & Regulations (BPP)
Lump Sum Solutions – A Practical Guide to Lump Sum Investments – R Anderson (Investor’s Portfolio)
Personal Investment Planning: An Introduction – T McRae (Chapman & Hall)