M8A Exam Study Guide (2026)
Everything the CMFAS Module 8A: Collective Investment Schemes II tests, topic by topic: what each section covers, the facts that come up most, and how to study it. Pair it with the free 15-question practice test.
The exam at a glance
| Questions | 50 multiple-choice questions |
|---|---|
| Time | 1 hour |
| Passing score | 70% (35 out of 50) |
| Format | Closed book, computer-based |
| Certifying body | Singapore College of Insurance (SCI) |
| Test provider | SCI computer-based examination centre, Singapore |
Mind map: the whole exam on one screen
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.
1. Derivatives Used by Funds
Futures, forwards, options and swaps, and how funds use them to hedge or seek returns.
Key facts
- Futures are standardised, exchange-traded obligations; forwards are private, customised contracts.
- Options give the buyer a right, not an obligation; the writer takes the obligation.
- Swaps exchange cash flows, such as fixed for floating interest.
- Hedging reduces risk; speculation seeks profit from price moves.
- Derivatives can add leverage, magnifying gains and losses.
- OTC derivatives carry counterparty risk.
Flashcards
Exam tip: Rights belong to option buyers; obligations to option writers and to both sides of futures.
2. Structured Funds and Capital Protection
How structured funds combine bonds and options, and the difference between protection and guarantees.
Key facts
- Many structured funds put most money in zero-coupon bonds and the rest in options.
- Capital protection is a design feature, not a formal guarantee.
- A capital guarantee depends on the guarantor's ability to pay.
- Protection usually applies only if held to maturity.
- Upside may be capped or based on a participation rate.
- Early redemption can return less than the protected amount.
Flashcards
Exam tip: The word 'guaranteed' is the trap. Ask: who guarantees, and when does it apply?
3. Hedge Funds and Alternative Strategies
Common hedge fund strategies, their features and their risks.
Key facts
- Long/short equity buys undervalued and shorts overvalued shares.
- Global macro bets on economic and policy trends across markets.
- Event-driven strategies trade around mergers and restructurings.
- Hedge funds often use leverage and short selling.
- They may charge performance fees and limit redemptions.
- Funds of hedge funds diversify across managers but add fees.
Flashcards
Exam tip: Hedge fund questions usually reward the answer mentioning leverage, liquidity limits or high fees.
Test yourself on these topics
Take the free 15-question M8A test, then save your results to unlock your Readiness Score and the mistakes bank.
4. Exchange-Traded Funds
How ETFs work, how they track an index, and their particular risks.
Key facts
- ETFs trade on an exchange throughout the day like shares.
- Most track an index at low cost.
Flashcards
Exam tip: Physical vs synthetic is the classic ETF question; synthetic = swap = counterparty risk.
5. Risks of Complex Funds and Suitability
Specified Investment Products, the CKA and how to match complex funds to clients.
Key facts
- Funds using derivatives for investment, structured funds and hedge funds are generally SIPs.
- Retail clients need a Customer Knowledge Assessment before buying unlisted SIPs.
Flashcards
Exam tip: A client who fails the CKA isn't banned; they must be advised first. Answers saying 'refuse' are usually wrong.
How to pass
- 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.
Frequently asked questions
How long should I study for the M8A exam?
Most working candidates need 4 to 8 weeks at 45 to 60 minutes a day. Book your exam once your Readiness Score has stayed at 80 or higher for about a week.
Can I take the M8A exam online?
CMFAS modules are computer-based exams sat in person at the examination body's centre in Singapore. Format: closed book, computer-based. Check the current candidate information from Singapore College of Insurance for the rules.
What score do I need to pass the M8A exam?
70% (35 out of 50). The exam has 50 multiple-choice questions and a time limit of 1 hour.
What are the most tested topics?
The outline covers derivatives used by funds, structured funds and capital protection, hedge funds and alternative strategies, exchange-traded funds, risks of complex funds and suitability. Use the free practice test to see which ones you need most.
The premium M8A study path
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.
Your step-by-step study path
- 1Derivatives Used by Funds12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25Notes free with an account
- 2Structured Funds and Capital Protection12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25Premium
- 3Hedge Funds and Alternative Strategies12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25Premium
- 4Exchange-Traded Funds12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25Premium
- 5Risks of Complex Funds and Suitability12 key notes, 160 flashcards, then 600 practice questions in 24 sets of 25Premium
- Final step: 6 full mock exams50 questions each, timed like test day. Pass them, then book your exam.Premium
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- Spaced repetition + mistakes bank
- Readiness Score & detailed reports
- Video lessons as they release
- Content updates during your access
- 5 bonuses: key numbers sheet, formula sheet, study planner and more
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Summarized from SCI's and IBF's official candidate information and the rules cited, checked October 2026. Confirm current requirements with Singapore College of Insurance (SCI).