Investment Foundations study plan

Map the investment industry value chain by listing at least ten participant types (asset managers, broker-dealers, custodians, exchanges, regulators, pension funds, insurers, sovereign funds, fintech platforms, advisers) and writing one sentence on each role and revenue source

Distinguish buy-side from sell-side functions and explain how front, middle, and back office responsibilities divide within a firm

Define primary versus secondary markets and give two concrete examples of activity in each

Explain how market structure (exchange-traded versus over-the-counter, auction versus dealer-driven) affects price discovery and liquidity

Trace the lifecycle of a trade from order origination through clearing and settlement, naming the role of each intermediary

Compare equity, fixed-income, foreign exchange, and derivatives markets on trading venue, typical participants, and settlement conventions

Identify the main regulatory bodies and rule types that govern market conduct, disclosure, and investor protection in your target jurisdiction

Explain how fees, spreads, and commissions create revenue for intermediaries and cost for investors

Classify the main instrument families (equities, fixed income, money market, pooled funds, derivatives, alternatives) by cash-flow pattern, risk profile, and typical investor use

Calculate and interpret bond price, yield to maturity, duration, and the price-yield relationship using at least three worked examples

Distinguish fund structures (open-end, closed-end, ETF, hedge fund, private equity) on liquidity, pricing, fee, and access characteristics

Explain the payoff profile of forwards, futures, options, and swaps, and identify who uses each for hedging versus speculation

Compute time-weighted and money-weighted returns on a sample portfolio and explain when each is the appropriate measure

Calculate risk statistics (standard deviation, beta, Sharpe ratio, maximum drawdown) from a supplied return series and interpret each result

Explain the role of benchmarks and how a benchmark is selected for a given mandate

Describe how diversification and correlation reduce portfolio risk, using a two-asset example with changing correlation

Build a client risk-profile questionnaire and translate the results into an appropriate asset allocation range

Distinguish strategic from tactical asset allocation and justify rebalancing rules with a written policy statement

Interpret common economic indicators (inflation, interest rates, GDP growth, employment) and explain their transmission to asset prices

Explain behavioural biases (loss aversion, anchoring, recency, overconfidence) and describe one adviser response to each

Apply the time value of money to goal-based planning: compute required savings for a stated future target under two return assumptions

Explain the purpose and mechanics of risk profiling, suitability assessment, and know-your-client requirements

Describe the main investment vehicle wrappers (taxable account, retirement account, insurance-wrapped product) and their tax and access implications

Draft responses to three common client questions about fees, volatility, and underperformance

Explain the adviser's obligations around conflicts of interest, disclosure, and best execution, with a concrete example of each

Distinguish fee-only, fee-based, and commission-based compensation models and their incentive effects

Describe the elements of a compliant client onboarding and periodic review process

Summarize how industry structure (product manufacturers, distributors, platforms) shapes the advice a client receives

Synthesize all five domains into a single concept map linking industry participants, markets, instruments, tools, and client service

Complete two timed mixed-domain practice sets and log every missed question by domain and error type

Re-teach the three weakest sub-topics from memory in writing without notes

Build a one-page formula and definition sheet covering return, risk, bond math, and time value of money