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: 

Describe collective investment schemes 
SAQA US ID UNIT STANDARD TITLE
8990  Describe collective investment schemes 
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 3  NQF Level 03  2 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2004-12-02  2007-02-21  SAQA 1657/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2008-02-21   2011-02-21  

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
243129  Describe collective investment schemes  Level 3  NQF Level 03  2   

PURPOSE OF THE UNIT STANDARD 
This unit standard introduces the basic concepts of collective investment schemes. It provides a broad introduction to participatory interest in a portfolio of a collective investment scheme.

The qualifying learner is capable of:
  • Knowing and explaining the concept of a collective investment scheme.
  • Identifying underlying assets that may be included in a collective investment scheme in securities.
  • Categorising the different types of collective investment schemes according to their mandates.
  • Recognising equity-based collective investment schemes as a long term investment.
  • Applying knowledge of investor profiles and risk to collective investment schemes. 
    		•

    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, Financial Literacy and Mathematical Literacy at NQF Level 2. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
  • Collective investment scheme portfolios include, but are not limited to, index funds, fund of funds, collective investment schemes in securities, general funds, feeder funds and money market funds.
  • The geographic classes of portfolios include domestic, worldwide, foreign and regional funds.
  • Asset classes include equity, fixed interest and asset allocation. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Know and explain the concept of a unit trust. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of an investment portfolio is illustrated graphically. 

    ASSESSMENT CRITERION 2 
    2. The concept of pooling is illustrated graphically. 

    ASSESSMENT CRITERION 3 
    3. The role of diversification in an investment is explained in relation to an investment portfolio. 

    ASSESSMENT CRITERION 4 
    4. Basic terms associated with a unit trust including but not limited to interest, income, equity, capital growth, yield, money market, unit price, charges and basic tax details are understood and explained with reference to a selected unit trust. 

    ASSESSMENT CRITERION 5 
    5. The inherent advantages and disadvantages of unit trusts as an investment are listed from the point of view of a small investor/new investor. 

    SPECIFIC OUTCOME 2 
    Identify the different investment products that a unit trust invests in. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The different investment products such as equities, shares, gilts, money market instruments, futures derivatives and interest-bearing deposits are named with examples of each. 

    ASSESSMENT CRITERION 2 
    2. The investment potential of the different products is compared based on the investment characteristics of the product. 

    ASSESSMENT CRITERION 3 
    3. The risk attached to each investment product is indicated based on growth and income. 

    SPECIFIC OUTCOME 3 
    Categorise the different types of unit trust. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Index, property, and balanced unit trusts are illustrated graphically. 

    ASSESSMENT CRITERION 2 
    2. The basis for the classification of a unit trust is indicated according to its investment portfolio. 

    ASSESSMENT CRITERION 3 
    3. The risk element of two unit trust investment portfolios is compared and reasons are given for the difference in risk. 

    ASSESSMENT CRITERION 4 
    4. The geographical classes of unit trusts are named with examples of unit trusts funds in each class. 

    ASSESSMENT CRITERION 5 
    5. The broad asset classes applied to unit trust funds are named with an example of a fund in each category. 

    ASSESSMENT CRITERION 6 
    6. Two examples of specialist categories of unit trust funds are listed with examples of each type of specialist fund. 

    SPECIFIC OUTCOME 4 
    Recognise unit trusts as a long-term investment. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The impact of market trends of the stock exchange on unit trust prices is explained with reference to examples. 

    ASSESSMENT CRITERION 2 
    2. Volatility is explained in terms of market fluctuation. 

    ASSESSMENT CRITERION 3 
    3. The concept of Rand cost averaging is explained using a graph to illustrate the underlying principles. 

    ASSESSMENT CRITERION 4 
    4. The principles of compound interest are understood and illustrated by performing simple calculations. 

    SPECIFIC OUTCOME 5 
    Apply knowledge of customer profiles and risk to unit trusts. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Questions are asked to establish a basic customer profile. 

    ASSESSMENT CRITERION 2 
    2. The risk category most likely to apply to the customer is indicated. 

    ASSESSMENT CRITERION 3 
    3. The customer profile is matched to two unit trust types. 

    ASSESSMENT CRITERION 4 
    4. The advantages and disadvantages of investing in the two types of unit trust are compared. 

    ASSESSMENT CRITERION 5 
    5. Possible investment options are posed for the customer profile. 

    SPECIFIC OUTCOME 6 
    Know and explain the concept of a collective investment scheme. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a collective investment scheme is explained and illustrated graphically. 

    ASSESSMENT CRITERION 2 
    2. The different types of collective investment schemes are described with examples. 

    ASSESSMENT CRITERION 3 
    3. The concept of a portfolio within a collective investment scheme is illustrated graphically. 

    ASSESSMENT CRITERION 4 
    4. The concept of diversification is explained in relation to an investor`s portfolio. 

    ASSESSMENT CRITERION 5 
    5. Basic terms associated with collective investments including, but not limited to, participatory interest in a collective investment scheme, fees, interest, income, equity, capital growth, yield, net asset value and basic tax details are understood and explained with reference to a selected collective investment scheme portfolio. 

    ASSESSMENT CRITERION 6 
    6. The inherent advantages and disadvantages of collective investment schemes are listed from the point of view of a small investor/new investor. 

    SPECIFIC OUTCOME 7 
    Identify the underlying assets that may be included in a collective investment scheme in securities. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The types or underlying assets that can be included in a portfolio are named with examples. 

    ASSESSMENT CRITERION 2 
    2. The typical securities in different types of portfolio are identified for three portfolios. 

    ASSESSMENT CRITERION 3 
    3. The different types of risk associated with different portfolio categories are named for three different portfolios. 

    SPECIFIC OUTCOME 8 
    Categorise the different types of collective investment schemes according to their mandates. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The basis for the classification of a collective investment scheme portfolio is indicated according to its underlying assets. 

    ASSESSMENT CRITERION 2 
    2. The risk element of two collective investment scheme portfolios is compared and reasons are given for the difference in risk. 

    ASSESSMENT CRITERION 3 
    3. The geographical classes of collective investment scheme portfolios are named with examples of portfolios in each class. 

    ASSESSMENT CRITERION 4 
    4. The broad asset classes applied to collective investment scheme portfolios are named with an example of a portfolio in each category. 

    ASSESSMENT CRITERION 5 
    5. Two examples of specialist categories of collective investment scheme portfolios are listed with examples of each type of specialist portfolio. 

    SPECIFIC OUTCOME 9 
    Recognise equity-based collective investment schemes as a long term investment. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The impact of market trends on net asset value prices is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. Volatility is explained in terms of market fluctuation. 

    ASSESSMENT CRITERION 3 
    3. The concepts of Rand cost averaging and lump sum investment is illustrated graphically. 

    ASSESSMENT CRITERION 4 
    4. The principles of compound interest are understood and calculated for two examples. 

    SPECIFIC OUTCOME 10 
    Apply knowledge of investor profiles and risk to collective investment schemes. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Questions are asked to establish a basic investor profile. 

    ASSESSMENT CRITERION 2 
    2. The risk category most likely to apply to the investor is indicated based on an investor profile. 

    ASSESSMENT CRITERION 3 
    3. The investor profile is matched to two collective investment scheme portfolios. 

    ASSESSMENT CRITERION 4 
    4. Two types of collective investment scheme portfolios are compared with reference to the advantages and disadvantages of each. 

    ASSESSMENT CRITERION 5 
    5. Possible investment options are posed for the investor profile. 


    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 IDENTIFYING 
    Learners can identify and solve problems by matching the investor profile to collective investment portfolios. 

    UNIT STANDARD CCFO COLLECTING 
    Learners can collect, organise and evaluate information when comparing the risk element of collective investment portfolios and when giving reasons for the differences in the risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively using visual skills when presenting the concepts of collective investment scheme portfolios. 

    UNIT STANDARD CCFO SCIENCE 
    Learners can use science and technology effectively by understanding and illustrating the principles of compound interest using a calculator. 

    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 market trends on the net asset value prices. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 243129, which is ' Describe collective investment schemes ', Level 3, 2 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  20177   National Certificate: Insurance  Level 3  NQF Level 03  Passed the End Date -
    Status was "Registered"     		 2004-10-10  Was INSETA until Last Date for Achievement 
    Core  20638   National Certificate: Collective Investment Schemes  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  INSETA 
    Elective  48783   National Certificate: Financial Services  Level 2  NQF Level 02  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  48494   National Certificate: Financial Services Management  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered"     		 2012-06-30  INSETA 
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  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  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.