IFSE Institute CIFC Exam Dumps - Right Preparation Method [2025]
IFSE Institute CIFC Exam Dumps - Right Preparation Method [2025]
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Tags: Latest CIFC Test Pass4sure, New CIFC Test Blueprint, CIFC Latest Test Preparation, Test CIFC Vce Free, CIFC New Soft Simulations
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Do not worry because IFSE Institute CIFC exams are here to provide you with the exceptional IFSE Institute CIFC Dumps exams. IFSE Institute CIFC dumps Questions will help you secure the IFSE Institute CIFC certificate on the first go. As stated above, Canadian Investment Funds Course Exam resolve the issue the aspirants encounter of finding reliable and original certification Exam Questions.
IFSE Institute CIFC Exam Syllabus Topics:
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The free demo IFSE Institute CIFC exam questions are available for instant download. Download the IFSE Institute Certification Exams dumps demo free of cost and explores the top features of Canadian Investment Funds Course Exam (CIFC) exam questions and if you feel that the CIFC exam questions can be helpful in IFSE Institute CIFC exam preparation then take your buying decision. Best of luck!!!
IFSE Institute Canadian Investment Funds Course Exam Sample Questions (Q165-Q170):
NEW QUESTION # 165
Exchange traded funds (ETFs) that track an index and index mutual funds have many similarities. However, what is a major difference between these two products?
- A. ETFs do not have management fees since they are exchange traded while index funds do incur such fees.
- B. ETFs can be purchased continuously throughout the trading day while index funds can only be bought or sold at the end of the day.
- C. While ETFs are prone to tracking errors, index funds are perfectly aligned with their underlying index.
- D. The market price of ETFs always matches the underlying basket of securities while there can be a discrepancy in pricing index funds.
Answer: B
Explanation:
Explanation
ETFs can be purchased continuously throughout the trading day while index funds can only be bought or sold at the end of the day. This is because ETFs are traded on a stock exchange like stocks, while index funds are traded directly with the fund company like mutual funds. This difference gives ETFs more liquidity and flexibility than index funds, as investors can buy and sell ETFs at any time during market hours at the prevailing market price. Index funds, on the other hand, are priced only once a day at the end of the day based on the net asset value per unit (NAVPU) of the fund. Both ETFs and index funds are prone to tracking errors (A), which are the differences between the performance of the fund and the performance of the underlying index. Tracking errors can be caused by various factors, such as fees, expenses, dividends, rebalancing, and market conditions. The market price of ETFs does not always match the underlying basket of securities , as it is determined by supply and demand in the market. There can be a discrepancy between the market price and the NAVPU of an ETF, which is called the premium or discount. Index funds, on the other hand, are priced based on the NAVPU of the fund, which reflects the value of the underlying securities. Both ETFs and index funds have management fees (D), as they are both types of mutual funds that incur costs for managing and operating the fund. However, ETFs usually have lower management fees than index funds, as they are more passive and have lower turnover and distribution costs. References: Canadian Investment Funds Course (CIFC) | IFSE Institute
NEW QUESTION # 166
Which investor's needs would be BEST met with an income trust?
- A. Gary wants to invest in a product which provides a consistent cash flow of interest, royalties, and lease payments passed along to unitholders.
- B. Tina wants a product that guarantees the return of at least 75% of her capital upon maturity of the contract or upon her death.
- C. Leanne wants a product that employs alternative strategies such as leverage and short selling to amplify returns.
- D. Phil wants to invest in a product where the performance is linked to that of an underlying asset and the issuer is obligated to repay his principal at maturity.
Answer: A
Explanation:
Explanation
An income trust is an investment trust that holds income-producing assets, such as debt instruments, royalty interests, or real properties. It can be structured as either a personal investment fund or a commercial trust with publicly traded closed-end fund shares. The main attraction of income trusts, in addition to certain tax preferences for some investors, is their stated goal of paying out consistent cash flows for investors, which is especially attractive when cash yields on bonds are low12 References = Canadian Investment Funds Course (CIFC) - Module 2: Investment Products - Section 2.3:
Income Trusts3 and web search results from search_web(query="income trust")12
3: https://www.ifse.ca/wp-content/uploads/2021/08/CIFC-Module-2.pdf
NEW QUESTION # 167
Which of the following statement about Exchange Traded Funds (ETFs) is TRUE?
- A. All ETFs are actively managed.
- B. Investors may sell their ETFs in the stock market or redeem them through the Fund at the NAVPU of the day.
- C. ETFs have lower MERs compared to mutual funds.
- D. Usually the market price of an ETF is the net asset value per unit (NAVPU) of the Fund on that day.
Answer: C
NEW QUESTION # 168
Jabir begins the registration process with his new dealer Prosper Wealth Inc. Jabir is excited about his new career and eager to start calling clients, opening new accounts, and selling investments. Which of the following CORRECTLY describes when Jabir will be eligible to open new client accounts and sell investments?
- A. Upon registration application by the dealer
- B. Upon formal confirmation from the regulator
- C. Upon employment with the dealer
- D. Upon passing the proficiency course
Answer: B
NEW QUESTION # 169
Janine will celebrate her 71st birthday this year. She currently has a lot of money in a personal registered retirement savings plan (RRSP) and knows there are rules about what she can do with those funds. Which of the following is TRUE?
- A. She can convert her RRSP to a registered retirement income fund (RRIF) this year or by December 31st of next year.
- B. She can convert her RRSP to a locked-in retirement income fund (LRIF).
- C. She can purchase a registered term or life annuity.
- D. She can take the entire amount in cash, with no tax consequences because her RRSP funds were tax-sheltered.
Answer: C
NEW QUESTION # 170
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