IFC Overview — Mutual Funds, KYC, Suitability, and Regulation

High-level overview of CSI Investment Funds in Canada (IFC): what’s tested, official topic weightings, common pitfalls, and a practical prep strategy.

IFC is a mutual-funds exam, but it’s also a client process exam: you’re expected to know products and terminology and how a representative should act (KYC, suitability, documentation, and compliance).

Official exam snapshot (CSI)

  • Exam format: Proctored (remote or in-person at a test centre)
  • Exam duration: 3 hours
  • Question format: Multiple Choice
  • Questions per exam: 100
  • Passing grade: 60%
  • Attempts allowed: 3
  • Hours of study (CSI guidance): 90 – 140 Hours
  • Enrolment period: 1 Year

Source: https://www.csi.ca/en/learning/courses/ifc/exam-credits

Official topic weightings (IFC)

Because the exam has 100 questions, the weighting percentage maps directly to a target question count.

Topic (CSI)WeightTarget questionsCSI chapters (curriculum)
Introduction to the Mutual Funds Marketplace13%131–3
The Know Your Client Communication Process19%194–6
Understanding Investment Products and Portfolios18%187–9
The Modern Mutual Fund5%510
Analysis of Mutual Funds10%1011–12, 14
Understanding Alternative Managed Products3%313
Evaluating and Selecting Mutual Funds16%1615–16
Ethics, Compliance, and Mutual Fund Regulation16%1617–18

Curriculum source: https://www.csi.ca/en/learning/courses/ifc/curriculum

What IFC is really testing

IFC questions typically test whether you can:

  • Conduct a clean KYC + suitability process (facts → constraints → recommendation).
  • Recognize product types and how they are traded (bonds, equities, mutual funds, ETFs, alternatives).
  • Reason about risk and return at an exam-appropriate level (diversification, volatility language, basic return math).
  • Interpret mutual fund performance comparisons and why benchmark/universe choice matters.
  • Understand fees and services and how costs compound against outcomes (concept).
  • Choose the compliant/ethical answer when client pressure conflicts with rules.

Common pitfalls

  • Confusing fund distributions with performance (distribution ≠ “extra return”).
  • Missing that process is testable: KYC completeness, account opening steps, prohibited practices.
  • Treating “best answer” questions like pure memorization (look for the dominant constraint).
  • Ignoring fees when comparing funds (costs matter in real outcomes).
  • Overloading a client with product detail instead of matching the recommendation to objectives and capacity.

How to prepare (a simple loop)

  1. Use the Syllabus as your checklist.
  2. After each chapter, review the matching section in the Cheatsheet and write 5–10 “if you see X, think Y” rules.
  3. Do short, targeted Practice sets (untimed → timed).
  4. Keep a “miss log”: every miss becomes a rule or flashcard.
  5. Finish each week with a mixed set to force transfer across topics.

✅ Next: follow the Study Plan or jump to the Syllabus.