CSI Investment Funds in Canada (IFC) Exam IFC Question # 118 Topic 12 Discussion

CSI Investment Funds in Canada (IFC) Exam IFC Question # 118 Topic 12 Discussion

IFC Exam Topic 12 Question 118 Discussion:
Question #: 118
Topic #: 12

Solomon is a Dealing Representative who is excited about a new equity fund his dealer recently approved. He thinks investors will be attracted to the fund’s historical performance. He has a prospective new client, Madira, who is 25 years old. Madira has invested in mutual funds before, but not with Solomon’s dealer. She has made an appointment to open a new RRSP with Solomon’s firm.

What does Solomon need to do to make this a suitable recommendation?


A.

Show from past fund performance, that mutual fund costs are not important if there are high returns.


B.

Rely on the risk rating of the mutual fund when offering an investment solution.


C.

Identify how the proposed investment is in alignment with the investor's profile and holdings.


D.

Match the past rates of return of the mutual fund with what is the anticipated rate of return.


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