Financial Investment Opportunities

Aim

The aim of this unit is to provide the learner with an understanding of the stock exchange and the range of financial investment opportunities available to individuals living in the UK.

Learning outcomes and assessment

LO1 Understand the range of investments available to individuals

1.1 assess the attitude of individuals to risk when evaluating the suitability of investments

1.2 evaluate a range of investments available from banks, building societies, insurance companies and national savings

1.3 analyse the suitability of these products for different people

LO2 Understand how the UK system of taxation affects investment decisions

2.1 calculate income tax payable for various individuals and couples, including income from dividends and interest

2.2 calculate capital gains tax liabilities in different situations

2.3 evaluate tax-free investments and their importance to different tax payers

LO3 Understand investors’ needs

3.1 identify the needs of different investors

3.2 design portfolios of investments for different individuals

3.3 explain the functions of financial advisers and how to select one

3.4 explain investors’ rights and the protection available to them

LO4 Understand the working of the stock exchange and the range of investments available

4.1 explain the information in the financial pages of The Financial Times

4.2 calculate stock exchange ratios and be able to explain what they mean

4.3 describe and evaluate collective investments, e.g. investment and unit trusts OEICs and bonds.