Actuarial Science

Definitive Guide to SP5 (Investment and Finance Principles)

sp5 actuarial science

You can use this study guide to move through Subject SP5 more easily. You can use it as a resource during your Subject SP5 studies because it provides all the material you’ll need before beginning to study for the 2023 tests in Subject SP5.

The manual is divided into two sections:

The information in Part 1 is exclusive to Subject SP5.

General information on the Specialist Principles (SP) disciplines is provided in Part 2.

The Subject SP5 course is divided into six sections. The portions are divided into chapters and cover relevant subjects. Each section concludes with an assignment that assesses the information covered in that section.

The parts and chapters are related to one another in the following table. How the chapters correspond to the days of the regular tutorials is shown in the final column. You can use this table to plan your progress throughout the study session.

Subject SP5 - Skills and assessment

Exam skills

Exam question skill levels In the Specialist Principles subjects, the approximate split of assessment across the three skill types is: 

  • Knowledge – 25% 
  • Application – 50% 
  • Higher Order skills – 25%. 

Assessment

The Specialist Principles examinations are in the form of 3¼-hour* examinations. * The online exams provide an additional 5 minutes (i.e. 3 hours and 20 minutes in total) for students to download and print the question paper.

SP5 SYLLABUS by IFOA

1 The economic, regulatory, and legislative framework for investment management (10%)
2 Specialist investment products (15%)
3 Valuing investments (10%)
4 Monitoring and managing investment risks (10%)
5 Investor characteristics, including behavioral finance and taxation (10%)
6 Appropriate investment strategies (15%)
7 Portfolio management and risk control (15%)
8 Analysing portfolio performance (15%)

In the SP subjects, the approximate split of assessment across these three skill types is 25% Knowledge, 50% Application, and 25% Higher Order Skills.

SP5 Course Content

The aim of Investment and Finance Principles (SP5) is to develop a student’s ability to apply the main principles and techniques of actuarial management and control that are relevant to the management of investments.

It builds on material covered in earlier subjects to cover the key principles of evaluating investments, including the appropriate selection and effective risk management of a portfolio of investments that meet the needs of a particular investor.

Actuarial Science SP5 Demo Lectures

SP5

10,000.0014,000.00

Exam Details :

  • Exam Fees 

SR. NO. SUBJECT FOR INDIA AND SAARC COUNTRIES (INR) FOR OTHER THAN SAARC COUNTRIES (INR)
Core Principles
1 CS1 – Actuarial Statistics 5000 Not Applicable
2 CS2 – Risk Modelling and Survival Analysis 5000 Not Applicable
3 CM1 – Actuarial Mathematics 5000 Not Applicable
4 CM2 – Financial Engineering and Loss Reserving 5000 Not Applicable
5 CB1 – Business Finance 3000 7500
6 CB2 – Business Economics 3000 7500
7 CB3 – Business Management 10000 10000
Core Practices
8 CP1 – Actuarial Practice 8000 20000
9 CP2 – Modelling Practice 10000 Not Applicable
10 CP3 – Communications Practice 8000 20000
Specialist Principles Stage (SP)
11 SP1 – Health and Care 6000 15000
12 SP2 – Life Insurance 6000 15000
13 SP4 – Pension and Other Benefits 6000 15000
14 SP5 – Investment and Finance  6000 15000
15 SP6 – Financial Derivatives 6000 15000
16 SP7 – General Insurance Reserving and Capital Modelling 6000 15000
17 SP8 – General Insurance – Pricing 6000 15000
Specialist Advanced Stage (SA)
18 SA1 – Health and Care 7500 18750
19 SA2 – Life Insurance 7500 18750
20 SA3 – General Insurance 7500 18750
21 SA4 – Pension and Other Benefits  7500 18750
22 SA7 – Investment and Finance 7500 18750

 

  • Exam Dates 

 

Timetable –November 2023 Examination

Tuesday 21st November – Thursday 30th November 2023

Day and Date Forenoon Afternoon
Subject From to Subject From to
21-11-2023

Tuesday

CB1 Business Finance

SP1 Health and Care

10.15 – 13.30 Hrs.

10.15 – 13.30 Hrs.

CP1A Actuarial Practice 14.45 – 18.00 Hrs.
22-11-2023

Wednesday

CB2 Business Economics

SP2 Life Insurance

10.15 – 13.30 Hrs.

10.15 – 13.30 Hrs.

CP1B Actuarial Practice 14.45 – 18.00 Hrs.
23-11-2023

Thursday

SP5 Investment and Finance 10.15 – 13.30 Hrs. SA1 Health and Care

SA2 Life Insurance

SA3 General Insurance

SA4 Pensions and Other Benefits

SA7 Investment and Finance

14.45 – 18.00 Hrs.
24-11-2023

Friday

CS1A Actuarial Statistics

SP4 Pensions and Other

Benefits

10.15 – 13.30 Hrs.

10.15 – 13.30 Hrs.

CS2A Risk Modelling and Survival

Analysis

SP7 General Insurance

Reserving and Capital Modelling

14.45 – 18.00 Hrs.

14.45 – 18.00 Hrs.

25-11-2023

Saturday

CM1A Actuarial Mathematics

SP6 Financial Derivatives

10.15 – 13.30 Hrs.

10.15 – 13.30 Hrs.

CM2A Financial Engineering and Loss

Reserving

SP8 General Insurance : Pricing

14.45 – 18.00 Hrs.

14.45 – 18.00 Hrs.

28-11-2023

Tuesday

CS1B Actuarial Statistics

(Computer based-R)

 

10.15 – 12.00 Hrs. CS2B Risk Modelling and Survival

Analysis (Computer based-R)

14.45 – 16.30 Hrs.
29-11-2023

Wednesday

CM1B Actuarial Mathematics

(Computer based-Excel)

CP3 Communication Practice

(Computer Based- Word)  

10.15 – 12.00 Hrs.

10.15 – 13.30 Hrs

CM2B Financial Engineering and Loss Reserving (Computer based-Excel) 14.45 – 16.30 Hrs.
30-11-2023

Thursday

CP2A Actuarial Modelling

(Computer based-Excel)

10.15 – 13.30 Hrs. CP2B Actuarial Modelling

(Computer based-Excel)

14.45 – 18.00 Hrs.

 

AM: PM:
9.30  Room Preparation 14.00  Room Preparations
10.00  Students enter room 14.30 Students enter room
10.15 – 13.30  Exam Duration 14.45 – 18.00  Exam Duration

Result Declaration Date: 30th January 2024, Tuesday

  • Exam Dates 

Code Center Name Code Center Name
1 Mumbai 9 Jaipur
2 Delhi 10 Ahmedabad
3 Kolkata 11 Lucknow
4 Bangalore 12 Chandigarh
5 Gurgaon 13 Indore
6 Chennai 14 Kochi
7 Pune 15 Coimbatore
8 Hyderabad 16 Guwahati

Links to other subjects & Skill levels

  • CB1 – Business Finance 
  • CB2 – Business Economics
  •  CM2 – Financial Engineering and Loss Reserving 
  • CP1 – Actuarial Practice
  •  SA7 – Investment and Finance Advanced

A syllabus objective’s use of a particular command verb does not mean that this is the sole way to inquire about the subject matter covered by that objective. Any of the approved command verbs, as listed in the document “Command verbs used in the Associate and Fellowship written examinations,” may be used by the Examiners to pose a question on any subject covered by the curriculum.

Questions may be set at any skill level: Knowledge (demonstration of a thorough knowledge and understanding of the topic), Application (demonstration of an ability to apply the underlying principles of the topic within a given context), and Higher Order (demonstration of an ability to perform deeper analysis and assessment of situations, including making judgments, accounting for different points of view, comparing and contrasting situations, and suggesting possible solutions).

In the SP subjects, the approximate split of assessment across these three skill types is 25% Knowledge, 50% Application, and 25% Higher-order skills. 

Revision and exam skills

You will have taken numerous examinations and learned the study methods that work best for you. However, it is crucial to note that you cannot leave all of your revisions till the last minute due to the substantial amount of work involved in Subject SP5. student preparation has a higher likelihood of passing the test the first time if they study properly in advance.

We advise you to practice a lot of exam-style questions as you get ready for the test.

Frequently Asked Questions

What is sp5 in actuarial science ?

SP2-Life Insurance. SP4-Pension and Other Benefits. SP5 Investment and Finance. SP6-Financial Derivatives. SP7-General Insurance Reserving and Capital Modelling.

What subjects in SP5?

1 The economic, regulatory and legislative framework for investment management (10%)
2 Specialist investment products (15%)
3 Valuing investments (10%)
4 Monitoring and managing investment risks (10%)
5 Investor characteristics, including behavioral finance and taxation (10%)
6 Appropriate investment strategies (15%)
7 Portfolio management and risk control (15%)
8 Analysing portfolio performance (15%)

What is sp5 Actuary?

This subject equips the students with the main principles of actuarial planning and control needed for the financial management of investments. SP5 is to be assessed in 3 hours and 15 mins exam.