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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Explain basic investment principles 
SAQA US ID UNIT STANDARD TITLE
113916  Explain basic investment principles 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2004-02-11  2007-02-11  SAQA 1852/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2008-02-11   2011-02-11  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
243153  Explain basic investment principles  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners in a financial services environment. It will add value to healthcare benefits administrators, financial planners, intermediaries financial advisers, healthcare intermediaries, product developers, co-coordinators of medical schemes, financial call centre agents and trustees of medical schemes and retirement funds. It complies with the current legislated practices in giving financial advice.

The qualifying learner is capable of:
  • Explaining the implications of goals for investments.
  • Identifying factors that could affect the choice of investment principles.
  • Analysing the risk associated with different investments.
  • Applying basic principles of investment to propose a financial solution. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this Unit Standard. Learners should be competent in Communication, Mathematical Literacy and Financial Literacy at Level 3. 

    UNIT STANDARD RANGE 
    Basic investment principles include, but are not limited to, diversification or spreading, of risk, risk return, Rand cost averaging, market timing and pooling. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the implications of goals for investments. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. A needs analysis is used to determine the objectives of an investment with reference to capital protection, term, growth, income, liquidity, tax and inflation. 

    ASSESSMENT CRITERION 2 
    2. Three factors that may impact on the objectives of an investment are identified and an indication is given as to how each could change the proposed objectives. 

    SPECIFIC OUTCOME 2 
    Identify factors that could affect the choice of investment principles. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The basic investment principles are named with examples. 

    ASSESSMENT CRITERION 2 
    2. The way in which tax, liquidity, market volatility, investment costs, term of investment, inflation, long term market cycle, currency and the performance of interest bearing equities influence investment principles is explained with examples. 

    ASSESSMENT CRITERION 3 
    3. Legislation that affects the choice of investment principles is identified for a specific sub sector. 

    SPECIFIC OUTCOME 3 
    Analyse the risk associated with different investments. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The risk associated with choice of investment institution is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The risk associated with choice of the institution in which an investor invests is explained with examples. 

    ASSESSMENT CRITERION 3 
    3. The risk levels associated with the main classes of assets are explained in terms of low to high level of risk and the investor`s risk appetite. 

    SPECIFIC OUTCOME 4 
    Apply basic investment principles to propose a financial solution. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. A range of investment products or instrument types is selected that meet each of the identified investment objectives. 

    ASSESSMENT CRITERION 2 
    2. A financial solution is proposed and substantiated that meets the specific objectives. 

    ASSESSMENT CRITERION 3 
    3. The implications of tax on a proposed investment solution is explained for a specific investor. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative and formative assessment by a registered assessor.
  • Assessors must be registered as an Assessor with the relevant ETQA.
  • Moderators must be registered as assessors with the relevant ETQA, or with an ETQA that has a Memorandum of Agreement with the relevant ETQA.
  • Training providers must be accredited by the relevant ETQA.

    Moderation should include both internal and external moderation where applicable. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is capable of making a decision using critical thinking in proposing a financial solution for a specific investor. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is capable of collecting, organising and critically evaluating information in analysing the risk in different investments. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is capable of communicating effectively in explaining the basic principles of investment. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 243153, which is ' Explain basic investment principles ', Level 4, 4 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2007-02-11  Was INSETA until Last Date for Achievement 
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. CKP Development Agency (Pty) Ltd. 
    2. Discovery Life Ltd 
    3. Faisit (Pty) Ltd 
    4. Intec College 
    5. Invuya Institute of Learning (Pty) Ltd 
    6. Masifunde Training Centre (Pty) Ltd 
    7. RJM Educational Consulting PTY LTD 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.