* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download 1 - Inseta
Survey
Document related concepts
Interbank lending market wikipedia , lookup
Private equity secondary market wikipedia , lookup
Capital gains tax in Australia wikipedia , lookup
History of investment banking in the United States wikipedia , lookup
Stock trader wikipedia , lookup
Hedge (finance) wikipedia , lookup
Mark-to-market accounting wikipedia , lookup
Financial Crisis Inquiry Commission wikipedia , lookup
Environmental, social and corporate governance wikipedia , lookup
Investment banking wikipedia , lookup
Derivative (finance) wikipedia , lookup
Systemically important financial institution wikipedia , lookup
Transcript
1. TITLE: Apply knowledge of the different asset classes in order to give financial advice ____________________________________________________________________________ 2. UNIT STANDARD NUMBER: 242594 replaces 14535 3. LEVEL ON NQF: 5 4. CREDITS: 4 5. FIELD: Sub Field: Business, Commerce and Management Studies Finance, Economics and Accounting 6. PURPOSE: This Unit Standard is intended for learners who advise individuals on personal financial planning or who give advice to small and medium sized business entities. It should lead to an in depth understanding of the asset classes and will be useful for learners who give advice as part of the financial planning process, learners are involved in the pricing of unit trusts, product development and giving information to Intermediaries, Retirement fund Consultants, Financial Advisors, `Financial Planners, Broker Consultants, Bankers, Trustees and learners in collective investment managers and in financial services in general. The qualifying learner is capable of: 9. Analysing the different asset classes and their role in a financial plan. Analysing the effect of the investment environment on the asset classes. Investigating how market conditions impact on asset classes. Analysing the risk profile of a client in order to propose a financial solution. LEARNING ASSUMED TO BE IN PLACE: It is assumed that learners are competent in Communication and Mathematical Literacy at NQF Level 4. 8. SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA: Specific Outcome 1: Analyse the different asset classes and their role in a financial plan Assessment Criteria: 1.1 The different asset classes are analysed to determine their characteristics, risk return relationship and accessibility to the investor 1.2 The composition of the investment portion of a financial portfolio is discussed with reference of asset classes, volatility, risk, optimal growth, expected rate of return and the balancing of the portfolio. Specific Outcome 2: Analyse the effect of the investment environment on the asset classes Assessment Criteria: 2.1 Risks in the investment environment are analysed with reference to the different asset classes. L5 asset classes 18 June 2006 1 2.2 Risks associated with active and passive management of an investment portfolio are analysed and an indication is given of when each style is appropriate. Specific Outcome 3: Investigate how market conditions impact on asset classes Assessment Criteria: 3.1 Knowledge of market conditions is applied to the asset classes and an indication is given of how a change in market conditions would affect the asset class and a proposed investment strategy. 3.2 Relationships that exist between the asset classes are described with reference to changes in market conditions and investor behaviour. Specific Outcome 4: Analyse the risk profile of a client in order to propose a financial solution Assessment Criteria: 9. 4.1 The personal circumstances of a client are determined in terms of needs, wants , appetite for risk and lifestyle. 4.2 A client’s financial situation is analysed to determine a risk profile at a specific life stage. 4.3 The risk profile of a client is matched to the appropriate asset classes. 4.4 The risk a client is prepared to take is matched to the risk associated with the different asset classes in order to recommend an investment solution for a specific client. ACCREDITATION AND MODERATION: 1. Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA. 2. Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA. 3. Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 10. 11. RANGE STATEMENT: The typical scope of this Unit Standard is: Asset classes include, but are not limited to, bonds, equities, cash, Money Market and property. The bond market includes Government, semi-government and corporate bonds. Small and medium sized business entities are defined in terms of the Income Tax Act. Characteristics and risk profiles over the short, medium and long term. Risks in the investment environment are upside and downside risks (benefits and potential loss) and include, but are not limited, to sector specific risk, market specific risk, geographic location and social and political risk. NOTES: CRITICAL CROSS FIELD and DEVELOPMENTAL OUTCOMES: L5 asset classes 18 June 2006 2 This Unit Standard supports in particular, the following Critical Cross-field Outcomes at NQF Level 5: 1. The learner is able to identify and solve problems in which responses show that responsible decisions using critical thinking have been made in matching a client’s needs to an asset class and market conditions. 2. The learner is able to collect, organise and critically evaluate information in analysing the risks associated with the asset classes and investigating the impact of market conditions on asset classes. 3. The learner is able to communicate effectively in proposing a financial solution to a client. 4. The learner is able to demonstrate an understanding of the world as a set of related systems relating risk profiles and market conditions to asset classes. Search words: asset classes, asset management, financial advice, portfolio management, investment management L5 asset classes 18 June 2006 3