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Investment funds · Last updated October 2026

CMFAS Module 8A: Collective Investment Schemes II: free practice test

The second funds module covers complex collective investment schemes: funds that use derivatives, structured and capital-protected funds, hedge funds, ETFs, and the extra suitability checks for Specified Investment Products. Pair it with M8, or sit both as CM-CIS.

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About the M8A exam

The second funds module covers complex collective investment schemes: funds that use derivatives, structured and capital-protected funds, hedge funds, ETFs, and the extra suitability checks for Specified Investment Products. Pair it with M8, or sit both as CM-CIS.

What's on the exam

M8A
Derivatives Used by Funds
6 key facts
Structured Funds and Capital Protection
6 key facts
Hedge Funds and Alternative Strategies
6 key facts
Exchange-Traded Funds
6 key facts
Risks of Complex Funds and Suitability
6 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 M8A exam

  • Know the payoff of each basic derivative: futures and forwards are obligations, options are rights.
  • 'Capital protected' is not 'capital guaranteed'. Expect questions that test the difference.
  • Learn when a Customer Knowledge Assessment (CKA) is needed for an unlisted SIP fund.
  • You need 35 out of 50 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 CMFAS Key Numbers Sheet.

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What's in the premium M8A prep

Premium M8A 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, 50 questions each, timed
800flashcards with spaced repetition, sorted by topic
60comprehensive key notes across 5 topics

Your step-by-step study path

  1. 1
    Derivatives Used by Funds12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25
    Notes free with an account
  2. 2
    Structured Funds and Capital Protection12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25
    Premium
  3. 3
    Hedge Funds and Alternative Strategies12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25
    Premium
  4. 4
    Exchange-Traded Funds12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25
    Premium
  5. 5
    Risks of Complex Funds and Suitability12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25
    Premium
  6. Final step: 6 full mock exams50 questions each, timed like test day. Pass them, then book your exam.
    Premium
Free with an account

Read the complete M8A study notes for “Derivatives Used by Funds”

Our first full set of comprehensive notes, about 10 minutes of reading: Obligations: futures and forwards · Rights: options · Swaps · How funds use derivatives, 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. A call option gives the buyer:
Answer: The right, but not the obligation, to buy the underlying asset at the strike price. Call buyers have the right to buy; put buyers have the right to sell. Option writers take on the obligation.
2. A fund manager sells index futures to protect a share portfolio against a market fall. This is an example of:
Answer: Hedging. Selling futures offsets losses on the shares if the market falls: a hedge.
3. A capital-protected fund differs from a capital-guaranteed fund because:
Answer: Capital protection is not a formal guarantee, so investors can still lose capital. Capital protection relies on the fund's structure; a guarantee is a formal commitment by a third party. Even guarantees depend on the guarantor's credit.
4. In many structured funds, capital protection comes from investing most of the money in:
Answer: Zero-coupon bonds that grow to the protected amount at maturity. A zero-coupon bond bought at a discount matures at the protected amount; the rest buys options for upside.
5. A hedge fund strategy that buys undervalued shares and short sells overvalued ones is:
Answer: Long/short equity. Long/short equity funds aim to profit from both rising and falling prices and reduce market exposure.
6. Compared with a typical unit trust, hedge funds often:
Answer: Use leverage and short selling, with less liquidity and higher fees. Hedge funds use complex strategies, often with leverage, performance fees and lock-up or notice periods.
7. An exchange-traded fund (ETF) is:
Answer: A fund traded on a stock exchange, usually tracking an index. ETFs trade like shares throughout the day, and most track an index at low cost.
8. The difference between an ETF's return and its index's return is called:
Answer: Tracking error (or tracking difference). Fees, cash drag and sampling cause the ETF to deviate from its index; this deviation is the tracking error.
9. A synthetic ETF gains index exposure mainly through:
Answer: Swaps or other derivatives with a counterparty. Synthetic ETFs use swaps, which adds counterparty risk compared with physical replication.
10. Before a retail client buys an unlisted Specified Investment Product fund on an advisory basis, what must generally be done?
Answer: A Customer Knowledge Assessment (CKA). A CKA checks whether the client has the education, investment experience or work experience to understand the product.
11. Leverage in a fund:
Answer: Magnifies both gains and losses. Borrowing or derivatives increase exposure, so both profits and losses are amplified.
12. Counterparty risk is the risk that:
Answer: The other party to a derivative contract fails to pay. Over-the-counter derivatives depend on the counterparty honouring the contract.
13. Compared with exchange-traded futures, forwards are:
Answer: Private, customisable contracts with more counterparty risk. Forwards are negotiated over the counter, so terms can be tailored but counterparty risk is higher.
14. A 'fund of hedge funds' mainly offers investors:
Answer: Diversification across several hedge fund managers, with an extra layer of fees. Funds of funds spread risk across managers but add their own fees on top of the underlying funds' fees.
15. If the guarantor of a capital-guaranteed fund defaults, investors:
Answer: May lose part of their capital. A guarantee is only as good as the guarantor's ability to pay.

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M8A exam FAQ

How many questions are on the M8A exam?

50 multiple-choice questions, with a time limit of 1 hour. Format: closed book, computer-based.

What is the passing score for M8A?

70% (35 out of 50).

How much does the M8A exam cost?

Set by SCI (single product modules have been listed at roughly S$80 to S$137); check SCI before you register. Fees can change, so confirm on the SCI or IBF website before you register.

Which languages is the M8A exam offered in?

English.

Where do I take the M8A exam?

SCI computer-based examination centre, Singapore.

Is this M8A 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 M8A prep is Premium at S$187 a month for this exam.

What's in the premium M8A prep?

3,000 practice questions organized topic by topic (Derivatives Used by Funds: 600; Structured Funds and Capital Protection: 600; Hedge Funds and Alternative Strategies: 600; Exchange-Traded Funds: 600; Risks of Complex Funds and Suitability: 600), 6 full-length timed mock exams of 50 questions, 800 flashcards and 60 comprehensive key notes split across all 5 topics, plus a mistakes bank and the Readiness Score.

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Exam details are summarized from the official candidate information available in October 2026. SCI or IBF changes formats and fees, so confirm with Singapore College of Insurance (SCI) before you book. CMFASQuizBank is not affiliated with MAS, SCI or IBF.

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