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119+ Free QFA Investment Practice Questions

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2026 Statistics

Key Facts: QFA Investment Exam

100

Exam Questions

LIA / IOB

2 hours

Exam Time Limit

LIA / IOB

40%

Passing Score

LIA / IOB

€360

Exam Fee

LIA / IOB 2026

41%

Individual Exit Tax

Revenue Commissioners

33%

DIRT & CGT Rate

Revenue Commissioners

The QFA Investment exam consists of 100 multiple-choice questions with a 2-hour time limit. It requires a passing score of 40% and costs €360. This qualification satisfies the Central Bank of Ireland's MCC requirements for advising on retail investment products. It covers asset classes, collective investment schemes, structured products, taxation, and portfolio management.

Sample QFA Investment Practice Questions

Try these sample questions to test your QFA Investment exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 119+ question experience with AI tutoring.

1What stamp duty rate is applied to the purchase of shares in an Irish-incorporated company?
A.0.5%
B.1.0%
C.2.0%
D.7.5%
Explanation: Stamp duty on the transfer of shares in Irish-registered companies is charged at a flat rate of 1.0%. This applies to transactions executed electronically or on paper.
2Which of the following is the standard rate of Deposit Interest Retention Tax (DIRT) in Ireland?
A.20%
B.25%
C.33%
D.41%
Explanation: The standard rate of DIRT in Ireland is 33% (effective since 2020). DIRT is deducted at source by banks and building societies from interest paid on deposits.
3An investor purchases an Irish government bond (Gilt) with a nominal value of €10,000 and a coupon rate of 4% per annum. If market interest rates rise, what is the most likely effect on the market price of this bond?
A.The market price of the bond will rise.
B.The market price of the bond will fall.
C.The market price of the bond will remain unchanged.
D.The coupon rate of the bond will adjust upwards.
Explanation: There is an inverse relationship between market interest rates and bond prices. When interest rates rise, new bonds are issued with higher yields, making existing bonds with lower coupons less attractive, causing their market price to fall.
4What is the current stamp duty rate on the transfer of non-residential (commercial) property in Ireland?
A.1.0%
B.2.0%
C.4.0%
D.7.5%
Explanation: Stamp duty on non-residential property transfers in Ireland, including commercial land and buildings, is 7.5%.
5Under EU regulations, what does the acronym 'UCITS' stand for?
A.Undertakings for Collective Investment in Transferable Securities
B.United Collective Investment Trust Scheme
C.Universal Code for Investment Trust Securities
D.Union of Collective Investment and Trading Schemes
Explanation: UCITS stands for Undertakings for Collective Investment in Transferable Securities. It is a regulatory framework that allows collective investment schemes to operate freely throughout the EU.
6Which of the following describes the key structural advantage of an Irish Collective Asset-management Vehicle (ICAV) compared to a public limited company (plc) fund structure?
A.An ICAV is completely exempt from the 8-year deemed disposal exit tax.
B.An ICAV can elect to be treated as a partnership (pass-through) for US tax purposes ('check-the-box').
C.An ICAV does not require a depositary or custodian.
D.An ICAV can only invest in physical real estate.
Explanation: The ICAV is a corporate structure designed specifically for Irish investment funds. Its key advantage is that it can elect to be treated as a partnership or disregarded entity for US tax purposes (using the 'check-the-box' rules), making it highly attractive to US taxable investors.
7How are dividend payments on Irish ordinary shares taxed for an individual who is an Irish resident taxpayer at the higher rate of income tax (40%)?
A.They are subject to 25% Dividend Withholding Tax (DWT) at source, with no further tax liability.
B.They are subject to 33% DIRT at source, and no further tax applies.
C.They are subject to 25% DWT at source, which is creditable against their income tax liability, with the balance taxed at their marginal rate plus USC and PRSI.
D.They are exempt from income tax but subject to Capital Gains Tax.
Explanation: Dividends paid by Irish resident companies are subject to 25% Dividend Withholding Tax (DWT) at source. The individual must declare this dividend income on their tax return, where it is taxed at their marginal income tax rate (e.g. 40%), plus USC and PRSI, with a credit given for the 25% DWT already deducted.
8Which of the following yields represents the total return anticipated on a bond if it is held until it matures, taking into account coupon payments, the purchase price, and the redemption value?
A.Current Yield
B.Nominal Yield
C.Yield to Maturity (YTM)
D.Earnings Yield
Explanation: Yield to Maturity (YTM) is the most comprehensive yield measure for bonds. It calculates the internal rate of return (IRR) of the bond's cash flows (coupons and principal repayment) based on its current market price.
9Which of the following is a primary characteristic of a Unit Trust structure in Ireland?
A.It is a corporate entity with a board of directors.
B.It is established under trust law by a trust deed between a management company and a trustee.
C.It can only be marketed to institutional investors.
D.The investors have direct legal ownership of the fund's underlying assets.
Explanation: A Unit Trust is not a corporate body; it is a contractual arrangement established under trust law by a trust deed between a management company (which manages the assets) and a trustee (which holds the legal title to the assets on behalf of unit holders).
10An investor is purchasing a residential property in Dublin for €450,000. What is the stamp duty liability on this transaction?
A.€4,500
B.€9,000
C.€33,750
D.€45,000
Explanation: The stamp duty rate on residential property in Ireland is 1.0% on the first €1 million. For a purchase price of €450,000, the liability is 1% of €450,000 = €4,500.

About the QFA Investment Exam

The QFA Investment module is a core component of the Qualified Financial Adviser (QFA) designation in Ireland. It satisfies the Central Bank of Ireland's Minimum Competency Code (MCC) requirements for advising on and selling retail investment products. The syllabus covers financial markets, major asset classes (cash, equities, bonds, property), collective investment schemes (unit trusts, UCITS, ICAVs), structured products (tracker bonds), taxation of investments (DIRT, exit tax, CGT), risk and return, and portfolio construction.

Assessment

100 multiple-choice questions

Time Limit

2 hours

Passing Score

40%

Exam Fee

€360 (LIA / IOB (Life Assurance Association of Ireland / Institute of Banking))

QFA Investment Exam Content Outline

20%

Asset Classes

Equities (ordinary/preference shares), Fixed Income (corporate/government bonds), Cash Deposits, and Property (residential/commercial).

20%

Investment Funds

Unit trusts, mutual funds, UCITS regulations, ICAV advantages, Exchange Traded Funds (ETFs), and open vs closed-ended structures.

15%

Risk and Return

Standard deviation, Beta, correlation coefficients, systematic vs unsystematic risk, inflation, default, currency, and liquidity risks.

20%

Taxation of Investments

Deposit Interest Retention Tax (DIRT), Capital Gains Tax (CGT) exemptions, Capital Acquisitions Tax (CAT) thresholds, Stamp Duty rates, and gross roll-up exit tax (41%).

10%

Structured Products

Tracker bonds, capital guarantee structures, participation rates, final index averaging methods, and counterparty credit risk.

15%

Portfolio Management

Strategic vs Tactical Asset Allocation, active vs passive management, risk profiling, rebalancing, Sharpe ratio, and suitability regulations.

How to Pass the QFA Investment Exam

What You Need to Know

  • Passing score: 40%
  • Assessment: 100 multiple-choice questions
  • Time limit: 2 hours
  • Exam fee: €360

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

QFA Investment Study Tips from Top Performers

1Memorize key Irish tax rates: DIRT at 33%, CGT at 33%, DWT at 25%, and fund exit tax at 41%.
2Understand the 8-year deemed disposal rule for funds under the gross roll-up regime.
3Learn the stamp duty rates: 1.0% on Irish shares, 1.0%/2.0% on residential property, 7.5% on commercial property, and 10% on bulk house buys.
4Master the inverse relationship between bond prices and market interest rates.
5Be clear on the difference between systematic (market) risk and unsystematic (company-specific) risk.
6Study how a capital-guaranteed tracker bond is built using a zero-coupon bond and call options.
7Understand the calculation and application of the Sharpe Ratio: (Portfolio Return - Risk-Free Rate) / Standard Deviation.
8Familiarize yourself with the ESMA Summary Risk Indicator (SRI) scale of 1 to 7.

Frequently Asked Questions

What is the QFA Investment module?

The QFA Investment module is one of six modules required to earn the Qualified Financial Adviser (QFA) designation in Ireland. It focuses on the characteristics, risks, tax treatments, and advising suitability of retail investment products available to consumers in Ireland.

What are the Central Bank's Minimum Competency Code (MCC) requirements?

The Central Bank of Ireland's MCC requires individuals who advise on or sell retail financial products to hold a recognized qualification, such as the QFA. The QFA Investment module specifically covers the competency requirements for advising on retail investment products.

How is the QFA Investment exam formatted?

The exam is a 2-hour, multiple-choice assessment consisting of 100 questions. It is typically delivered online via a proctored testing platform. The passing score is 40%.

How much does the QFA Investment module cost?

The standard registration fee for the QFA Investment module is €360. This includes the core learning textbook, online study materials, webinars, and the exam entry fee.

How are investment returns taxed under the Irish gross roll-up regime?

Under the gross roll-up regime, gains made within an Irish collective investment fund grow tax-free (no annual tax on income or gains inside the fund). Instead, exit tax (currently 41% for individuals) is applied when the investor redeems units or switches funds, or on the 8th anniversary of the investment (deemed disposal).

What is the DIRT rate in Ireland?

The standard rate of Deposit Interest Retention Tax (DIRT) in Ireland is 33%. DIRT is deducted at source by banks and building societies from interest paid on deposits.

What is the difference between Strategic and Tactical Asset Allocation?

Strategic Asset Allocation (SAA) sets the long-term target mix of assets based on a client's risk profile and goals. Tactical Asset Allocation (TAA) allows for short-term, active deviations from the SAA to exploit market opportunities or manage risks.