SP5-Investment & Finance Principles - All English

SP5-Investment & Finance Principles – All English

₹25,700.00

SP5: Investment & Finance Principles – Regular Course.
Faculty: Vandita Sarda & Shivangee Agarwal
Course Duration: 50+ Hours

Category:

SP5 – Investment and Finance Principles

Develop Expertise in Investment Management, Portfolio Strategies and Financial Risk Analysis

SP5 – Investment and Finance Principles is a Specialist Principles subject in the actuarial qualification pathway offered by the Institute and Faculty of Actuaries (IFoA), UK, and the Institute of Actuaries of India (IAI).

The subject focuses on applying actuarial and financial principles to investment analysis, portfolio construction, asset valuation and investment risk management.

SP5 builds upon the knowledge developed in earlier actuarial subjects, particularly CM2, CB1, CB2 and CP1. It combines investment strategy, financial markets, portfolio management, asset-liability management, behavioural finance and risk assessment, developing the analytical and professional skills required to manage investments for different types of investors.

Course Structure & Syllabus

SP5 covers investment principles and their practical applications in financial markets, portfolio management and risk assessment.

Key Topics Covered:

  1. Investment Environment & Regulatory Framework:
    Economic conditions, financial markets, regulatory requirements, corporate governance, taxation, Environmental, Social and Governance (ESG) considerations and investment regulations.
  2. Investment Products & Financial Instruments:
    Equities, bonds, derivatives, structured products, hedge funds, private equity, commodities, infrastructure and alternative investments.
  3. Investment Valuation Techniques:
    Equity and bond valuation, fundamental analysis, discounted cash flow techniques, yield analysis, credit assessment and valuation of financial instruments.
  4. Investment Risk Management:
    Market risk, credit risk, liquidity risk, operational risk, asset-liability mismatching, portfolio diversification and financial risk mitigation.
  5. Investor Characteristics & Behavioural Finance:
    Investor objectives, risk tolerance, investment constraints, taxation, behavioural biases and financial planning considerations.
  6. Investment Strategies & Portfolio Management:
    Strategic and tactical asset allocation, active and passive investment strategies, liability-driven investment (LDI), portfolio construction, hedging and risk control.
  7. Portfolio Performance Measurement:
    Investment returns, performance attribution, benchmark comparisons, risk-adjusted performance measures, portfolio monitoring and investment manager evaluation.

The SP5 syllabus focuses on investment valuation, portfolio construction, financial risk management, strategic asset allocation and investment decision-making, developing essential competencies for actuarial investment practice.

Syllabus Topics & Weightages

The SP5 syllabus comprises eight principal areas under the IFoA 2027 curriculum:

Topic Weightage
Economic, Regulatory and Legislative Investment Framework 10%
Specialist Investment Products 15%
Valuing Investments 10%
Monitoring and Managing Investment Risks 10%
Investor Characteristics and Behavioural Finance 10%
Appropriate Investment Strategies 15%
Portfolio Management and Risk Control 15%
Analysing Portfolio Performance 15%
Total 100%

These weightages indicate approximate syllabus coverage. Actual question distribution may vary between examination sittings.

Examination Structure

SP5 consists of a single written examination assessing investment principles, financial analysis, portfolio management and professional judgement.

Particulars IAI (India) IFoA (UK)
Examination Paper SP5 – Investment and Finance SP5 – Investment and Finance Principles
Question Format Descriptive / Case-Based Descriptive / Case-Based
Examination Duration 3 Hours 15 Minutes 3 Hours 20 Minutes
Maximum Marks 100 100
Examination Software Word-Based Word-Based
Examination Mode Centre-Based Online In-Person at Exam Centres or Remotely Invigilated Online

Important Examination Guidelines

  • Written Examination:
    Candidates must demonstrate conceptual understanding and apply investment principles to practical financial and actuarial scenarios.
  • Case-Based Questions:
    Questions may involve investment selection, asset valuation, portfolio construction, investment risk management, asset-liability matching and investment performance evaluation.
  • Professional Judgement:
    Answers should demonstrate structured reasoning, relevant financial analysis and appropriate investment recommendations.
  • IFoA Examination Mode:
    Students can indicate their preference to appear at an authorised examination centre or through remote online invigilation. Final allocation is subject to availability and IFoA examination guidelines.
  • IAI Examination Mode:
    Examinations are conducted online at designated examination centres in accordance with IAI’s examination arrangements.
  • Examination Requirements:
    Students must comply with their respective institute’s rules regarding permitted materials, examination software, answer presentation and examination conduct.

Passing Criteria

The passing requirements differ between IAI and IFoA.

Institute Passing Requirements
IAI (India) Minimum 50% marks
IFoA (UK) Approximately 56%–65% (varies across examination terms)

Important Information:

  • SP5 consists of a single examination paper.
  • IAI prescribes a minimum passing requirement of 50% under its current examination rules.
  • IFoA determines the passing mark separately for each examination sitting. The 56%–65% range is indicative, not a fixed official requirement, and actual passing marks may fall outside this range.
  • Candidates who do not clear SP5 must reappear for the examination in a subsequent sitting.

Eligibility Criteria

SP5 is a Specialist Principles examination suitable for students pursuing advanced actuarial knowledge in investments and financial management.

  • Students can pursue SP5 through the IAI or IFoA examination pathway, subject to the respective institute’s eligibility and registration requirements.
  • A strong understanding of the Core Principles subjects, particularly CM2 – Economic Modelling, CB1 – Business Finance and CB2 – Business Economics, is recommended.
  • Prior knowledge of CP1 – Actuarial Practice is beneficial, especially in risk management, investment decisions and asset-liability management.
  • Familiarity with financial markets, investment products, financial mathematics and quantitative analysis is recommended.
  • Students must fulfil the applicable registration and examination entry requirements of their selected actuarial institute.

Learning Objectives

Studying SP5 develops the ability to:

  • Understand financial markets and investment instruments.
  • Evaluate different investment products and asset classes.
  • Apply financial valuation techniques to investments.
  • Identify, measure and manage investment risks.
  • Analyse investor objectives, constraints and behavioural factors.
  • Develop appropriate investment and asset allocation strategies.
  • Apply portfolio construction and risk control techniques.
  • Evaluate investment performance and portfolio efficiency.
  • Apply professional judgement to investment management decisions.

Practical Applications of SP5

The knowledge gained in SP5 is applicable across several actuarial and financial disciplines:

  1. Asset & Portfolio Management:
    Designing investment portfolios, evaluating asset allocation strategies and monitoring investment performance.
  2. Pensions & Employee Benefits:
    Developing liability-driven investment strategies, managing pension assets and matching investment portfolios with long-term liabilities.
  3. Life Insurance & Asset-Liability Management:
    Managing insurance investment portfolios, evaluating asset-liability risks and developing investment strategies.
  4. Investment Risk Management:
    Identifying market, credit, liquidity and operational risks and developing appropriate risk mitigation strategies.
  5. Investment Consulting & Advisory:
    Providing investment advice, evaluating financial products, assessing portfolio performance and recommending investment strategies.

SP5 develops specialist actuarial knowledge in investment and finance and provides an academic foundation for SA7 – Investment and Finance Advanced, supporting further specialisation in investment management and financial risk analysis.

Technical Requirements – AEI Learning Application

To access online classes, recorded lectures and digital study resources, students must ensure their devices meet the following minimum technical requirements of the Actuators Educational Institute (AEI) Learning Application.

Device / Platform Minimum Requirement
Android Android 9.0 or above
Windows PC / Laptop Windows 10 or above
iPhone / iPad (iOS) iOS 12.0 or above
MacBook / iMac (macOS) Apple M1 chip or above with macOS 14 or later
WHAT YOU WILL GET

Course Deliverables

gold medal
Live Discussion Classes
gold medal
Recorded Lectures
gold medal
Softcopy of AEI Own Study Materials
gold medal
Access to Student Dashboard
gold medal
Technical Support
gold medal
Mock Test with Detailed Evaluation (3 Sets)
gold medal
Hard Copies of AEI Own Materials
gold medal
Course Extension (2 More Terms)
gold medal
Interactive Q & A Forum

Vandita Sarda AIR 1
Niharika Agarwal71
Dribjot Singh64
Ankit Chhajer63
Adarsh Agarwal60
Manan Agarwal52

FACULTY

Meet The Instructor


Vandita Sarda is a Chartered Accountant and Actuary and a distinguished actuarial rank holder, having secured All India Rank 1 in ACET, SP5, SA7 and CP1.

A graduate of St. Xavier’s College, Kolkata, she brings strong technical knowledge and a deep understanding of actuarial examinations. At Actuators Educational Institute, she mentors students across actuarial subjects and also conducts the Maths & Statistics Bridge Course, helping students strengthen the foundational concepts required for actuarial studies.

Her teaching approach focuses on simplifying complex concepts, building strong fundamentals, and developing a practical problem-solving mindset.

Shivangee Agarwal is a globally qualified actuary holding the prestigious credentials of FIA (UK), FIAI (India) and FSA (USA), along with the C.Act designation, giving her professional recognition across three of the world’s leading actuarial bodies. She is also IFRI Certified, holds a Master’s in Data and Business Analytics from IIM Indore, and completed her B.Com (Hons. in Finance) from St. Xavier’s College, Kolkata. She secured All India Rank 1 in CT7 – Business Economics, reflecting her strong academic foundation in actuarial science, finance and analytics.

With over 10 years of teaching experience, she has taught and mentored 5,000+ students across Actuarial Science, Data Analytics and Finance. At Actuators Educational Institute, she teaches the Paper B components of CM subjects, along with CS2, CB2, CP2, CP3 and FRM, and also conducts training in Excel, VBA, SQL and R Programming. She has delivered workshops and academic sessions at institutions including SRCC, Lady Shri Ram College, St. Xavier’s College, Mithibai College, IIM Indore and IBS Hyderabad, combining deep technical expertise with a practical, structured and exam-focused teaching approach.

PLAYLIST

Demo Class Videos


× Popup