Standard I (D) – Misconduct Members and Candidates must not engage in any professional conduct involving dishonesty fraud, or deceit, or commit any act that reflects adversely on their professional reputation, integrity, or competence. Guidance Standard I(D) – Misconduct addresses…

Standard I (C) – Misrepresentation Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities. Trust is paramount in the investment profession. Misrepresentation is broadly defined as making any false statements or…

Standard 1(A) – Knowledge of the Law Members and Candidates must understand and comply with all applicable laws, rules, and regulations (including the CFA Institute Code of Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency,…

Standard I (B) – Independence and Objectivity Members and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation,…

Firm in Investment In the field of investment, a firm is typically an investment firm, a subsidiary, or a division that is showcased to the public as a separate business entity. This distinct business entity could be a unit, division,…

Investment Management: Team vs Individual Approach Investment decisions are often made collectively by teams rather than individuals. This trend is evident in the 2021 statistic that 64% of all US active mutual funds were managed by teams, as reported by…

Indexes for Index-Based Strategies There are a number of key factors an investor should consider when selecting an appropriate benchmark for an equity portfolio. Benchmarks are crucial for measuring performance, guiding investment decisions, and ensuring accountability. The following explore the…

Management of Equity Portfolios The management of equity portfolios is a significant topic in the investment community, with two primary strategies being index-based and active management. However, the choice between these two approaches is not strictly binary. Instead, equity portfolios…

Fixed-Income Investment Strategies Fixed-income investment strategies are a crucial part of wealth management. These strategies often involve the construction of a portfolio that is either “laddered”, “bullet”, or “barbell”. A laddered portfolio evenly distributes the bonds’ maturities and par values…

Interest rate immunization Interest rate immunization is a financial strategy used to manage the risk associated with changes in interest rates. It is applicable to both single and multiple liabilities, assuming that the cash flows are of Type I, where…