R06: Questions from the February exam – Part 2

R06: Questions from the February exam – Part 2

Continuing on from our previous post on R06: Questions from the February exam let’s take a look at another question that came up in Case Study 1…

Andrew and Carrie were interested in ethical investing so every case study analysis produced by training providers (including BTS) absolutely had a few questions and answers around ethical investing.

When it came to the exam day the following question came up:

‘Explain to Andrew and Carrie why it might be better to invest in ethical investments via a collective investment fund, rather than selecting individual companies for this purpose.’ (8 marks).

At first glance it would have been easy to think this was a really tough question as it was probably not predicted and as a result not prepped for. However, the answers required actually had very little to do with ethical investing and a shedload to do with generic benefits of using a collective investment scheme (such as an OEIC or unit trust) rather than buying individual shares. Areas such as, benefits from professional fund management, that is active, cheaper costs, no Stamp Duty, greater diversification, easy to sell (more liquid) all would have scored you marks.

In any R06 exam no company can ever predict nor can ever you prepare for every question that may come up. But you must have some base knowledge across the board, and on investments that would include all the different types of collectives, how they work, and what their benefits and drawbacks are. The R06 examiner loves collective investments especially ones such as an investment bond.

BTS top-tips…

  1. Revise your base knowledge before the case studies are released.
  2. When the case studies are released, make a list of the technical areas that could come up and check your knowledge of these areas.


There’s still time to book on the BTS R06 workshop for the April exam sitting. This two-day workshop will take you through a deep-dive into each of the April case studies, helping you to anticipate possible questions, plan your answers and practise writing these, all with feedback and discussion from the expert BTS facilitator.

If you can’t attend the workshop, get yourself a copy of the BTS Case Study Analysis, due for release on Tuesday 6th April. This will include as many potential questions that the experts at BTS have been able to identify from the exam case studies, including suggested answers and crib sheets on relevant technical areas (attendance on the workshop gives delegates access to this analysis as part of their booking fee). Look out for the Case Study Analysis e-Learning module in the BTS shop from 6th April.




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