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

Demonstrate knowledge and understanding of basic investment techniques 
SAQA US ID UNIT STANDARD TITLE
12181  Demonstrate knowledge and understanding of basic investment techniques 
ORIGINATOR
SGB Insurance and Investment 
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  2 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2004-12-02  2007-12-02  SAQA 1657/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2008-12-02   2011-12-02  

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 does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard introduces the basic investment techniques used by Collective Investment Scheme Managers.

The qualifying learner is capable of:
  • Differentiating between equity based instruments and income bearing instruments.
  • Explain the importance of diversification in any investment product.
  • Investigating local and offshore investment options.
  • Explaining the concept of gearing. 
    		•

    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 NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
  • Investment options both local and offshore of an amount greater than the current individual offshore allowance.
  • Factors to consider in making a local or offshore investment include income tax. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Differentiate between equity based instruments and income bearing instruments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of an equity based instrument is explained in own words with examples. 

    ASSESSMENT CRITERION 2 
    The concept of an income bearing instrument is explained in own words with examples. 

    ASSESSMENT CRITERION 3 
    The uniqueness of an equity based collective investment scheme in securities as an investment is described with reference to investments. 

    ASSESSMENT CRITERION 4 
    An equity based collective investment scheme investment is compared to equity based instrument as an investment option. 

    ASSESSMENT CRITERION 5 
    An income bearing collective investment scheme investment is compared to income bearing instruments as an investment option. 

    ASSESSMENT CRITERION 6 
    Collective investment schemes as an investment product are assessed against the benefits of an equity or income bearing investment and the comparison is presented in a report. 

    SPECIFIC OUTCOME 2 
    Explain the importance of diversification in any investment product. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of diversification is explained with reference to an investment product. 

    ASSESSMENT CRITERION 2 
    The risk involved in not diversifying is illustrated based on current economic activities. 

    ASSESSMENT CRITERION 3 
    The dangers of over diversification are illustrated graphically. 

    SPECIFIC OUTCOME 3 
    Investigate local and offshore investment options. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Local investment options to consider when investing money are researched for a local investment option. 

    ASSESSMENT CRITERION 2 
    Offshore investment options to consider when investing money are researched for an offshore investment option. 

    ASSESSMENT CRITERION 3 
    A personal decision is made on the best investment option for a local and offshore investment opportunity. 

    ASSESSMENT CRITERION 4 
    The effect of the Rand exchange rate on local and offshore investments is explained and illustrated in a table. 

    ASSESSMENT CRITERION 5 
    The concept of inflation is explained with examples of how it could affect a local or offshore investment. 

    SPECIFIC OUTCOME 4 
    Explain the concept of gearing. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of gearing is explained with reference to an investment technique. 

    ASSESSMENT CRITERION 2 
    The use of gearing as an investment option is investigated for three different scenarios. 

    ASSESSMENT CRITERION 3 
    A calculation is used to illustrate the risk associated with gearing. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, INSQA framework for assessment and moderation. 

    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 COLLECTING 
    Learners can collect, organise and evaluate information when comparing investment options. 

    UNIT STANDARD CCFO COMMUNICATING 
  • Learners can communicate effectively using mathematical skills in calculating the risk associated with gearing and comparing instruments.
  • Learners can communicate effectively using language and visual skills explaining concepts and comparing instruments. 
    		•

    UNIT STANDARD CCFO SCIENCE 
    Learners can use science and technology effectively in doing calculations and sourcing information about instruments. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to demonstrate an understanding of the world as a set of related systems when explaining the impact of the Rand exchange rate and inflation of instruments. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Learners can make a decision based on an assessment and comparison of participatory interest in a collective investment scheme portfolio, income bearing and equity investment instruments and a personal decision about an investment option in which responses show that responsible decisions using critical and creative thinking have been made. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  20638   National Certificate: Collective Investment Schemes  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  INSETA 
    Elective  59097   Further Education and Training Certificate: Real Estate  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  SERVICES 
    Elective  24454   Further Education and Training Certificate: Real Estate  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2007-11-28  Was SERVICES until Last Date for Achievement 
    Elective  20773   National Certificate: Long Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  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.
     
    NONE 


    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.