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Mutual funds · Last updated October 2026

Investment Funds in Canada (IFC): free practice test

The course and exam most mutual fund dealer representatives write to sell mutual funds in Canada. One 100-question exam covers know-your-client, products and portfolios, how mutual funds work, fund analysis and selection, and the ethics and rules that govern mutual fund sales.

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About the IFC exam

The course and exam most mutual fund dealer representatives write to sell mutual funds in Canada. One 100-question exam covers know-your-client, products and portfolios, how mutual funds work, fund analysis and selection, and the ethics and rules that govern mutual fund sales.

What's on the exam

IFC
Introduction to Mutual Funds and the Regulatory Environment
5 key facts
Know Your Client
5 key facts
Investment Products and Portfolios
5 key facts
The Modern Mutual Fund
5 key facts
Analysis of Mutual Funds
5 key facts
Alternative and Managed Products
5 key facts
Evaluating and Selecting Mutual Funds
5 key facts
Ethics, Compliance and Regulation
5 key facts

Each branch is a topic in the official outline. Members see every key fact on the full mind map. Read the free study guide →

How to pass the IFC exam

  • 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.

Save your results and get your Readiness Score

Create a free account after the test: your score by topic, a mistakes bank, the complete study notes for the first topic, flashcards and the Canadian Securities Key Numbers Sheet.

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What's in the premium IFC prep

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.

3,000practice questions, every answer explained
6full-length mock exams, 100 questions each, timed
800flashcards with spaced repetition, sorted by topic
60comprehensive key notes across 8 topics

Your step-by-step study path

  1. 1
    Introduction to Mutual Funds and the Regulatory Environment8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25
    Notes free with an account
  2. 2
    Know Your Client8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25
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  3. 3
    Investment Products and Portfolios8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25
    Premium
  4. 4
    The Modern Mutual Fund8 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25
    Premium
  5. 5
    Analysis of Mutual Funds7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25
    Premium
  6. 6
    Alternative and Managed Products7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25
    Premium
  7. 7
    Evaluating and Selecting Mutual Funds7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25
    Premium
  8. 8
    Ethics, Compliance and Regulation7 key notes, 100 flashcards, then 375 practice questions in 15 sets of 25
    Premium
  9. Final step: 6 full mock exams100 questions each, timed like test day. Pass them, then book your exam.
    Premium
Free with an account

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.

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Study tools included

3,000 practice questions

3,000 exam-style questions per exam, organized topic by topic in sets of 25. Every answer explained, with the rule it comes from.

6 full mock exams

6 full-length timed mock exams per exam, with real question counts and time limits, so test day feels like practice day.

Exam Readiness Score

One 0 to 100 number that tells you when you're ready to book. Reach 80 and you're covered by our Pass Guarantee.

800 flashcards + spaced repetition

800 flashcards per exam, in a deck for each topic, that come back right before you'd forget them. Five minutes a day keeps every number fresh.

60 comprehensive key notes

60 key notes per exam, split across its topics and each explained in full: the concepts, worked exam examples, the traps examiners use and a quick recap. Your first set is free with an account.

Mind maps

See the whole exam on one screen: every topic and the facts under it.

Sample questions with answers

These are the questions in the free test above, with answers. Try the test first. You'll learn more by getting some wrong.

1. Most Canadian mutual funds are structured as:
Answer: Mutual fund trusts or mutual fund corporations. Most funds are trusts, with unitholders. Mutual fund corporations issue shares and can offer corporate-class switching between funds.
2. Which document must be delivered to a mutual fund purchaser, summarizing the fund's risk, performance and costs in plain language?
Answer: The Fund Facts. Under NI 81-101, the Fund Facts (a short summary document) must be delivered to purchasers. The full simplified prospectus is available on request.
3. A client's investment time horizon is best described as:
Answer: The period until the client needs a significant part of the money. Time horizon affects how much short-term volatility the portfolio can absorb. Short horizons point to lower-risk, more liquid investments.
4. A client says they want high growth but would sell everything after a 10% fall. Their risk profile should be based mostly on:
Answer: Their low willingness to tolerate losses. When willingness and stated goals conflict, the representative must reconcile them and document it. Reactions to losses show the client's real tolerance.
5. Which type of mutual fund is generally the lowest risk?
Answer: Money market fund. Money market funds hold short-term, high-quality debt such as T-bills. They offer stability and liquidity with low returns.
6. A balanced fund typically holds:
Answer: A mix of equities and fixed income. Balanced funds combine shares and bonds for growth and income with moderate risk.
7. Mutual fund units are bought and redeemed at:
Answer: The NAVPS calculated after the order is received (forward pricing). Funds use forward pricing: an order is filled at the next NAVPS calculated after it's received, usually at the close of business.
8. A mutual fund's management expense ratio (MER) shows:
Answer: The annual cost of running the fund as a percentage of its average net assets. The MER includes the management fee, operating expenses and taxes, and it reduces the fund's returns every year.
9. A fund's standard deviation measures:
Answer: The volatility of its returns. Higher standard deviation means returns vary more widely around the average, indicating higher volatility risk.
10. The Sharpe ratio helps compare funds by showing:
Answer: Return per unit of total risk taken, above the risk-free rate. Sharpe ratio = (fund return − risk-free rate) ÷ standard deviation. A higher ratio means more excess return for each unit of risk.
11. A fund that charges a performance fee and may use leverage and short selling under NI 81-102's alternative fund rules is a:
Answer: Liquid alternative fund. Liquid alternative mutual funds may use strategies such as leverage, short selling and concentration within limits, and are sold under a prospectus to retail investors.
12. When comparing two Canadian equity funds, the most appropriate benchmark is:
Answer: A Canadian equity index such as the S&P/TSX Composite. A benchmark should match the fund's investment mandate. A Canadian equity fund should be measured against a Canadian equity index.
13. Switching a client's fund to another fund just to earn a new commission, with no benefit to the client, is called:
Answer: Churning. Churning (excessive trading for the representative's benefit) breaches the duty to put the client's interest first.
14. A mutual fund dealer representative wants to sell a product not offered through their dealer. This is generally:
Answer: Prohibited unless the dealer approves it as an outside activity and it's properly supervised. Selling away (dealing in securities outside the dealer) is prohibited. Outside activities must be disclosed to and approved by the dealer.
15. Investing a fixed amount in a fund at regular intervals, regardless of price, is called:
Answer: Dollar-cost averaging. Dollar-cost averaging buys more units when prices are low and fewer when high, reducing the risk of investing a lump sum at a bad time.

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  • 800 flashcards + 60 key notes per exam, by topic, plus mind maps
  • Spaced repetition + mistakes bank
  • Readiness Score & detailed reports
  • Video lessons as they release
  • Content updates during your access
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Certification guide

CSC or CIRE in 2026: which exam do you need?: On 1 January 2026, CIRO changed how new representatives qualify. The Canadian Securities Course (CSC) is no longer the entry exam for investment dealer representatives; CIRO's own Canadian Investment Regulatory Exam (CIRE) is. But the CSC hasn't disappeared, and for many roles it's still accepted. Here's how to work out which path is yours.

IFC exam FAQ

How many questions are on the IFC exam?

100 multiple-choice questions, with a time limit of 3 hours. Format: closed book, computer-based.

What is the passing score for IFC?

60%.

How much does the IFC exam cost?

Set by CSI as part of the IFC enrolment; check CSI before you enrol. Fees change, so confirm with CSI or CIRO before you enrol.

Which languages is the IFC exam offered in?

English and French.

Where do I take the IFC exam?

Remote proctoring or an in-person test centre, booked through CSI.

Is this IFC practice test free?

Yes. The 15-question practice test on this page is free, with an explanation for every answer and no signup. A free account also unlocks the complete study notes for the first topic. The full IFC prep is Premium at C$207 a month for this exam.

What's in the premium IFC prep?

3,000 practice questions organized topic by topic (Introduction to Mutual Funds and the Regulatory Environment: 375; Know Your Client: 375; Investment Products and Portfolios: 375; The Modern Mutual Fund: 375; Analysis of Mutual Funds: 375; Alternative and Managed Products: 375; Evaluating and Selecting Mutual Funds: 375; Ethics, Compliance and Regulation: 375), 6 full-length timed mock exams of 100 questions, 800 flashcards and 60 comprehensive key notes split across all 8 topics, plus a mistakes bank and the Readiness Score.

Compare IFC with other Canadian licensing exams

Related practice tests

Exam details are summarized from the official candidate information available in October 2026. CSI or CIRO changes formats and fees, so confirm with Canadian Securities Institute (CSI) before you book. CSCQuizBank is not affiliated with CSI, CIRO or Fitch Learning.

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