IFSE Institute CIFC Actual Free Exam Questions & Community Discussion

Exam Code/Number: CIFC
Exam Name/Title: Canadian Investment Funds Course Exam
Certification Provider: IFSE Institute
Corresponding Certification: Investments & Banking

Exam Questions: 225
Updated On: Jul 24, 2026

Question #11

Which statement about a net capital loss incurred by a mutual fund trust is CORRECT?

A. A net capital loss is permitted to be carried forward by the mutual fund for up to 3 years.

B. A net capital loss is passed on to the unit holders by the mutual fund in the year it occurs.

C. A net capital loss is permitted to be carried back indefinitely by the mutual fund.

D. A net capital loss is permitted to be carried forward indefinitely by the mutual fund.

Discussion 0

Correct Answer: D Vote an answer

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Question #12

Which of the following formulas correctly shows how taxable income is calculated?

A. gross income less tax credits

B. the sum of earned income and investment income

C. total income less tax deductions

D. the sum of income from all sources

Discussion 0

Correct Answer: C Vote an answer

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Question #13

On January 3, John invests $500 in the Blue Sky U.S. Equity Fund. On July 1 of the same year, he invests another $500 into the same mutual fund. Information about the net asset value per unit (NAVPU) at the time of each transaction is provided below. Given this information, what will be the value of John's investment on December 31 of this year (please ignore transaction costs and distributions)?

A. $1,256

B. $1,198

C. $1,332

D. $1,216

Discussion 0

Correct Answer: A Vote an answer

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Question #14

Greg is a Dealing Representative. As a part of his business building activity, Greg prepares several messages to post on his website and Facebook page. Which statement CORRECTLY describes this situation?

A. Greg must not discuss the investment performance, rankings, or ratings of a fund in his communication.

B. Greg's messages must be approved by his dealer before he can publish or issue the communication.

C. Posting messages to Facebook is prohibited by Canada's Anti-Spam Law (CASL).

D. Posting a sales communication to a website is prohibited by the Personal Information Protection and Electronic Documents Act (PIPEDA).

Discussion 0

Correct Answer: B Vote an answer

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Question #15

Sheldon is a 25 year old graphic designer. He has just started working and saves regularly. Apart from his regular salary he also earns extra money from freelancing after office hours and during weekends. His earnings from his freelance work are sufficient for meeting his living expenses. He saves the entire amount of his salary. He has heard about lifecycle funds but has come to you for additional information.
Which of the following statement about lifecycle funds is TRUE?

A. All lifecycle funds start with equal allocations to cash, fixed income and equities before being re-balanced.

B. Investor income is the only basis for changing the asset allocation of a lifecycle mutual fund.

C. The asset allocation of a lifecycle fund is set based on the age demographic of its unitholders and remains the same for the time frame of the lifecycle fund.

D. As Sheldon gets older, the life cycle asset allocation changes from more risky to less risky.

Discussion 0

Correct Answer: D Vote an answer

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Question #16

Which of the following applies to a mutual fund trust?

A. It has unitholders.

B. It is always closed-end.

C. It has a board of directors and shareholders.

D. It is not efficient at passing through income to investors.

Discussion 0

Correct Answer: A Vote an answer

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Question #17

Which of the following money market securities have the highest degree of risk for the investor?

A. Commercial Paper

B. Municipal Short-Term Paper

C. Bankers' Acceptances

D. Treasury Bills

Discussion 0

Correct Answer: A Vote an answer

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Question #18

You have been researching Canadian equity mutual funds for a new client. You come across the following information.

What can you conclude from this information?

A. Chamberlain Equity Fund has lower volatility since its 5-year annualized return is higher.

B. Fontaine Equity Fund has a lower risk level since its Sharpe Ratio is lower.

C. Fontaine Equity Fund is a better fund because it has a higher quartile ranking.

D. Fontaine Equity Fund's higher MER contributes to its lower 5-year annualized return.

Discussion 0

Correct Answer: D Vote an answer

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Question #19

Which of the following statements describes a feature of the Home Buyers' Plan (HBP)?

A. If you have a spouse or common-law partner, each of you can withdraw up to JE50.000 from your registered retirement savings plans (RRSPs).

B. Once you are required to repay the amounts back to your RRSP. any missed or incomplete payments are subject to tax.

C. A qualifying home must be purchased by December 31 of the year of withdrawal.

D. To qualify- as a first-time home buyer you or your spouse must never have previously owned a home

Discussion 0

Correct Answer: B Vote an answer

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Question #20

Axis Wealth Management Inc. is a mutual fund dealer and member of the Mutual Fund Dealers Association of Canada (MFDA).
Indrek is a Branch Manager for the Guelph Branch and he is responsible for conducting suitability reviews in order to identify any unsuitable transactions or accounts. Which of the following accounts/transactions would be unsuitable?

A. Megara bought a principal protected note (PPN) with a 7-year maturity. Megara wants principal protection and has a long-term investment time horizon (10+ years).

B. Hundolf holds the Fortune Small Cap Equity Fund. Hundolf is fully employed, he is saving for his retirement in 18 years, his investment objective is "growth", and his risk profile is "medium-high".

C. Gilles has invested in various mutual funds using a leverage strategy recommended by his Dealing Representative. Gilles is 82, he is retired, he needs regular income, and his risk profile is "low".

D. Ulani is saving for the final payment she will owe on her pre-construction condominium. Ulani has invested in the Harbour Money Market Fund because she is seeking "safety".

Discussion 0

Correct Answer: C Vote an answer

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