All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
A client with R20 000 wants exposure to listed shares but cannot afford a spread of individual shares and does not want to choose them. Which product is most appropriate to discuss?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A fixed deposit, because it is linked to the share market
- b) A share
- c) An equity unit trustCorrect
- d) A single company's share that has performed well recently
Why this is the answer
An equity collective investment scheme pools investors' money into a diversified portfolio of listed shares, managed professionally, which suits a client with a small amount who does not want to pick shares. A single share is concentrated, and a fixed deposit and funeral policy give no share exposure.
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