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: 

Explain basic investment principles 
SAQA US ID UNIT STANDARD TITLE
243153  Explain basic investment principles 
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 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
113916  Explain basic investment principles  Level 4  NQF Level 04   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners in a financial services environment who require a basic introduction to investments. It will add value to Trainee Financial Planners, Intermediaries, Product Developers, Coordinators of Medical Schemes, Financial Call Centre Agents and Trustees and Principal Officers of medical schemes and retirement funds.

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 for a specific individual. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical 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.
  • Institutional risk includes compliance with the regulatory environment, business sustainability, credibility, performance history, reputation and license.
  • Legislation includes the Collective Investment Schemes Control Act, 45 of 2002 (CISCA), the Pension Funds Act, The Medical Schemes Act and the Security Services Act.
  • Level of risk includes low to high level of risk.
  • Investors include, but are not limited to individuals, Corporates and Retirement Funds. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the implications of goals for investment. 

    ASSESSMENT CRITERIA
     

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

    ASSESSMENT CRITERION 2 
    Factors that may impact on the objectives of an investor in relation to an investment are identified and an indication is given as to how each factor could change the proposed objectives. 

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

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Basic investment principles are named with examples. 

    ASSESSMENT CRITERION 2 
    Ways in which tax, liquidity, market volatility, investment costs, term of investment, inflation, business cycles, currency and the performance of securities influence investment decisions are explained with examples. 

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

    ASSESSMENT CRITERION 4 
    The importance of diversification is explained with reference to diversification within and across asset classes and products. 

    SPECIFIC OUTCOME 3 
    Analyse the risk associated with different investments. 

    ASSESSMENT CRITERIA
     

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

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

    ASSESSMENT CRITERION 3 
    The risk levels associated with the main classes of assets are explained with reference to the risk profile of a selected investor. 

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

    ASSESSMENT CRITERIA
     

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

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

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


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • 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 CCFO SCIENCE 
    The learner is capable of using technology effectively in using an electronic system to access information relating to investment types and products. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is capable of demonstrate an understanding of the world as a set of related systems in explaining how different financial indicators influence investment decisions and how different factors may impact on the objectives of an investor. 

    UNIT STANDARD CCFO CONTRIBUTING 
    The learner is capable of displaying cultural sensitivity in using a needs analysis to determine the objectives of an investor in relation to an investment. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 113916, ' Explain basic investment principles ', Level 4, 3 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2021-06-30  As per Learning Programmes recorded against this Qual 


    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. African Resources & Financial Training (Pty) Ltd 
    2. CKP Development Agency (Pty) Ltd. 
    3. De Vries Management & Training Services cc 
    4. Faisit (Pty) Ltd 
    5. Masifunde Training Centre (Pty) Ltd 
    6. Ray Strodl Consulting (Pty) Ltd 
    7. RJM Educational Consulting (Pty) Ltd 
    8. Sanlam Life Insurance 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.