IFC Exam Study Guide (2026)
Everything the Investment Funds in Canada (IFC) tests, topic by topic: what each section covers, the facts that come up most, and how to study it. Pair it with the free 15-question practice test.
The exam at a glance
| Questions | 100 multiple-choice questions |
|---|---|
| Time | 3 hours |
| Passing score | 60% |
| Format | Closed book, computer-based |
| Certifying body | Canadian Securities Institute (CSI) |
| Test provider | Remote proctoring or an in-person test centre, booked through CSI |
Mind map: the whole exam on one screen
Read the complete IFC study notes for “Introduction to Mutual Funds and the Regulatory Environment”
Our first full set of comprehensive notes, about 10 minutes of reading: What a mutual fund is · Structures · Disclosure rules · Investor rights, a worked exam example, the traps examiners use and a one-minute recap. Create a free account to read it and see how premium notes work before you decide.
1. Introduction to Mutual Funds and the Regulatory Environment
What mutual funds are and who regulates their sale.
Key facts
- Mutual funds pool investors' money under professional management.
- Most are trusts; some are corporations offering class switches.
- NI 81-101 covers disclosure (Fund Facts, simplified prospectus); NI 81-102 sets investment restrictions.
- Mutual fund dealers and their reps are regulated by CIRO.
- Buyers can withdraw within 2 business days of receiving the Fund Facts.
Flashcards
Exam tip: 81-101 = documents, 81-102 = investment rules.
2. Know Your Client
Building a complete client profile.
Key facts
- Collect financial and personal circumstances, objectives, knowledge, risk profile and time horizon.
- Risk profile combines willingness and capacity.
- Life stage shapes needs: growth when young, income and preservation in retirement.
- KYC must be updated when there's a material change.
- Document everything.
Flashcards
Exam tip: A client's behaviour in past downturns is better evidence of tolerance than their stated wishes.
3. Investment Products and Portfolios
The building blocks inside funds and how they combine.
Key facts
- Money market funds: lowest risk, most liquid.
- Bond funds: income, interest-rate and credit risk.
- Balanced funds: shares plus bonds.
- Equity funds: growth with the most volatility.
- Specialty and sector funds concentrate risk.
Flashcards
Exam tip: Rank fund risk: money market < bond < balanced < equity < sector/specialty.
Test yourself on these topics
Take the free 15-question IFC test, then save your results to unlock your Readiness Score and the mistakes bank.
4. The Modern Mutual Fund
How funds are priced, bought, sold and charged.
Key facts
- Forward pricing at the next NAVPS.
- Purchase options: front-end load, no load; DSC sales banned since June 2022.
Flashcards
Exam tip: Reinvested distributions raise the adjusted cost base, which lowers the capital gain later.
5. Analysis of Mutual Funds
Measuring fund performance and risk.
Key facts
- Total return includes distributions and price change.
- Standard deviation measures volatility.
Flashcards
Exam tip: A higher return isn't better if it came with far more risk; the Sharpe ratio settles that.
6. Alternative and Managed Products
Liquid alts, segregated funds and managed solutions.
Key facts
- Liquid alternative funds may use leverage, short selling and concentration within NI 81-102 limits.
- Segregated funds are insurance products with guarantees and potential creditor protection.
Flashcards
Exam tip: Insurance guarantees cost money: seg funds usually have higher MERs than similar mutual funds.
7. Evaluating and Selecting Mutual Funds
Matching funds to clients and avoiding conflicts.
Key facts
- Start from the client's profile, then the asset mix, then specific funds.
- Compare MERs, risk ratings, mandates and manager tenure.
Flashcards
Exam tip: If a switch benefits only the rep, it's churning, whatever the paperwork says.
8. Ethics, Compliance and Regulation
The conduct rules for mutual fund representatives.
Key facts
- Deal fairly, honestly and in good faith; put the client first.
- Selling away (dealing outside the dealer) is prohibited.
Flashcards
Exam tip: Anything done outside the dealer's knowledge is almost always the wrong answer.
How to pass
- 100 questions in 3 hours is generous: 1 minute 48 seconds each. Use the time to work through the client scenarios properly.
- Know your client is the biggest topic (19%). Practise building a client's profile and matching it to fund types.
- Ethics, compliance and regulation plus evaluating and selecting funds make up another 32%. Learn the Fund Facts document and what each section shows.
- You need 60% to pass.
Frequently asked questions
How long should I study for the IFC exam?
Most working candidates need 4 to 8 weeks at 45 to 60 minutes a day. Book your exam once your Readiness Score has stayed at 80 or higher for about a week.
Can I take the IFC exam online?
Yes. IFC can be written remotely with a proctor or in person at a test centre. Format: closed book, computer-based. Check the current exam guide for the rules.
What score do I need to pass the IFC exam?
60%. The exam has 100 multiple-choice questions and a time limit of 3 hours.
What are the most tested topics?
The outline covers introduction to mutual funds and the regulatory environment, know your client, investment products and portfolios, the modern mutual fund, analysis of mutual funds, alternative and managed products, evaluating and selecting mutual funds, ethics, compliance and regulation. Use the free practice test to see which ones you need most.
The premium IFC study path
Premium IFC prep is studied one topic at a time. Each step starts with that topic's key notes and flashcard deck, then its own question sets of 25, so you master one topic before you move to the next. When every topic is strong, the 6 full mock exams show you're ready.
Your step-by-step study path
- 1Introduction to Mutual Funds and the Regulatory Environment8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Notes free with an account
- 2Know Your Client8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 3Investment Products and Portfolios8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 4The Modern Mutual Fund8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 5Analysis of Mutual Funds7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 6Alternative and Managed Products7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 7Evaluating and Selecting Mutual Funds7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- 8Ethics, Compliance and Regulation7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25Premium
- Final step: 6 full mock exams100 questions each, timed like test day. Pass them, then book your exam.Premium
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Summarized from CSI's and CIRO's official candidate information and the rules cited, checked October 2026. Confirm current requirements with Canadian Securities Institute (CSI).