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Collective Investment Schemes M3 Flashcards

6 cards from real CMFAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Collective Investment Schemes M3 flashcards as text

  1. What is the difference between accumulation and distribution classes of a fund?

    Answer: Accumulation reinvests income; distribution pays income to investors

    Accumulation classes reinvest any income (dividends/interest) back into the fund, increasing NAV. Distribution classes pay income directly to investors.

  2. What is a sustainable/ESG fund?

    Answer: A fund that considers environmental, social, and governance factors in its investment process

    ESG funds integrate environmental, social, and governance criteria into their investment analysis and decision-making process.

  3. What is the total return of a fund?

    Answer: The combined return from capital gains and income distributions

    Total return includes both capital appreciation (increase in NAV) and any income distributions (dividends, interest) received by investors.

  4. What is a multi-asset fund?

    Answer: A fund that invests across multiple asset classes such as equities, bonds, and alternatives

    A multi-asset fund invests across various asset classes to achieve diversification and manage risk through a balanced approach.

  5. What is the role of an auditor in a CIS?

    Answer: To independently verify the fund's financial statements and operations

    An auditor independently examines and verifies the fund's financial statements, ensuring accuracy and compliance with accounting standards.

  6. What happens to a fund's NAV when markets fall?

    Answer: NAV typically decreases

    When markets fall, the value of the fund's underlying investments decreases, which reduces the fund's total assets and therefore its NAV per unit.

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Sources & references

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  1. ibf.org.sg — Eligibility, fees, score release, registration, retake policy, exam format, passing score, time limit · verified Oct 2026