Investment Management Certificate (IMC) Exam Tips and Tricks
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Start early
An essential tip to boost your chances of success is to start revising early. Beginning your revision well in advance allows you to break down the extensive syllabus into bitesize chunks, ensuring you cover each topic in detail. Starting early also allows for effective retention of the material. Additionally, early revision provides an opportunity to identify any knowledge gaps and/or areas of weakness and improve in those areas. Having a solid grasp of the syllabus will enable you to differentiate between almost correct answers and truly correct answers.
Little and often
Adopting a "little and often" approach to revision makes a significant difference. Instead of cramming all your study into one big session, spread it out over time. Revisit your notes and materials regularly, even if it's just for a short while each day. This approach helps your brain remember information better and prevents you from feeling overwhelmed.
Do practice questions repeatedly
When you first start revising for the Investment Practice Module, the thought of memorising all of the required formulas seems daunting, but with consistent practice, these formulas become deeply ingrained in your memory and become second nature to you.
We suggest you complete as many practice questions as possible and persistently revisit them until you consistently achieve correct answers. Practice improves confidence and increases your focus and concentration levels during the test. Practice will help you figure out which tips and tricks work for you, thereby enabling you to develop the best personal test strategy for you.
It is worth noting that a few questions from the two official IMC mock exam papers may reappear in your actual examination. As a result, we strongly recommend sitting mock exams under timed conditions and aiming for a score of at least 85% in the mock exams before proceeding with your exam.
Read questions and enter data carefully
Under pressured exam conditions, it’s easy to misread or misinterpret questions. Misreading a question can cost you dearly, we strongly advise you to read each word of every question. If it’s a data entry question, pay attention to the requested number format of the answer and double‑check that you have typed the answer in the correct format. Typos can occur when entering data into the calculator so enter data carefully and double‑check complex calculations if you have time at the end of your exam.
Focus on areas of weakness
By completing practice questions, you’ll be able to identify your areas of weakness and strengthen them. Spending time strengthening your knowledge in your areas of weakness is an easy way to increase your total score. Don’t only review what you’re getting wrong once, go back to it over and over again so it becomes cemented in your long‑term memory. Note errors you repeatedly make in practice sessions so you can avoid these errors in the exam.
Guess, flag, and skip puzzling questions
In the Investment Practice Module of the IMC, time management is crucial, on average, you should aim to spend 1 minute and 20 seconds per question. If you find yourself stuck on a question, it's important to not get bogged down for too long. Instead, focus on eliminating clearly wrong answer options, then make an educated guess and flag the question. Even if you make a blind guess and cannot revisit the flagged question due to time constraints, there is a 25% chance of receiving a mark. Remember that each correctly answered question contributes equally to your final score. Therefore, it's crucial to keep moving forward; otherwise you run the risk of running out of time and missing the opportunity to tackle questions you are more confident about. Additionally, it's worth noting that moving on from a question can be beneficial. It gives your brain extra time to subconsciously mull over the problem while you tackle other questions. If you return to it later, you might find that it appears much simpler than it did initially.
Familiarise yourself with the computer‑based IMC sample test
To ensure you can confidently navigate the test system during your exam, we strongly advise that you familiarise yourself with the IMC’s computerised testing environment by utilising the IMC sample test provided by The CFA UK. You can refer to our guide on navigating the IMC sample test for detailed instructions.
Familiarise yourself with Pearson VUE’s TI‑30XS on‑screen calculator
In the IMC exam, you'll be using Pearson VUE's TI‑30XS On‑Screen Calculator. It's crucial that you can use this calculator confidently before going in to sit your exam. Be sure to explore our practical guide for maximising the TI‑30XS On‑Screen Calculator - it's essential reading to enhance your chances of success, particularly for the Investment Practice Module of the IMC, where calculations are abundant and time is of the essence.
Use your keyboard to answer multiple‑choice questions
For multiple‑choice questions, you can press the letters A, B, C or D on your keyboard to select the correct option instead of clicking on the answer option.
Schedule your exam time based on your circadian rhythm
Research suggests that the optimal time of day to sit an exam is between 11 am and 2 pm. During this late morning to early afternoon period, body temperature and alertness tend to be higher, which is thought to enhance cognitive abilities. Bear in mind that individual variations exist due to factors such as chronotype (being a morning or evening person). Therefore, paying attention to your own patterns of alertness and concentration throughout the day can help you determine the best time of day to schedule your exam.
Label your whiteboard
When using the physical whiteboard provided for your workings, make sure to clearly label your calculations and notes with the corresponding question numbers. This makes it easier to know which question you're referring to when you look back at your work.
Exercise caution when changing answers
While it's natural to second‑guess yourself, striking the right balance between critical thinking and self‑assurance is crucial. Changing an answer choice should be approached with utmost care. Only modify your answer if you have genuine reasons to believe it's incorrect. Avoid changing a guessed answer; trust your initial instinct, as studies suggest our first thought is often correct.
There are no shortcuts to improving your calculation skills
It may be tempting to review answers without practicing the calculations as part of your revision, however this will not improve your calculation skills. You need to practice the calculations, this takes time and effort but it pays off.
Calculation Tips
Mentally calculate the percentage format
To save time when calculating percentages, mentally shift the decimal place two positions to the right instead of using the calculator to multiply the decimal by 100.
Ignore zeros when calculating large figures
For large figures e.g. thousands and millions, ignore the number of zeros and work with non‑zero figures and then add the zeros back to get the final answer.
For example when answering the question below:
Calculate the operating profit given the following information: depreciation £80,000, decrease in receivables £10,000, decrease in payables £5,000 and net cash flow £100,000.
You should answer this question by typing the correct numbers in the following format without symbols: 00,000
Operating profit + depreciation + decrease in receivables - decrease in payables = net cash flow from operating activities
Operating profit + 80 + 10 - 5 = 100
Operating profit = 100 + 5 - 10 - 80
Operating profit = 15
Add the three O’s back to the final answer to get 15,000
Data Interpretation
When the market price of a bond is £60 and assuming the bond is redeemed at par, then:
(a) It is not possible to predict whether interest or redemption yield is greater
(b) Interest yield is greater than redemption yield
(c) Redemption yield is equal to interest yield
(d) Redemption yield is greater than interest yield
The CFA are not only testing your calculation ability but also your logical reasoning skills.
For example, when answering the question above, we do not need to perform any calculations to answer this question. We can use the logical statements listed below to deduce that the correct answer is (d).
Capital Loss
If Price > Par then Coupon > Flat Yield/Interest Yield > Gross Redemption Yield
Capital Gain
Price < Par then Coupon < Flat Yield/Interest Yield < Gross Redemption Yield
Neutral
Price = Par then Coupon = Flat Yield/Interest Yield = Gross Redemption Yield
Round answers at the very end
Don’t round your answers until you’re at the final stage of the calculation
Get adequate sleep
In the journey of preparing for an exam, there's one often underestimated element that cannot be overstated and makes all the difference: a good night's sleep, particularly the night before an exam (consider it to be the final step in your test preparation). While the temptation to burn the midnight oil and cram may be strong, it’s important to remember that sleep is a pivotal element of effective learning.
During sleep, our brains consolidate and organise the information we've absorbed throughout the day. This process enhances memory retention, making it easier to recall facts and concepts. Quality sleep fosters mental clarity, focus, and problem‑solving abilities, all of which are crucial for productive study sessions and exam success. Conversely, a sleep‑deprived mind suffers from reduced concentration, impaired decision‑making and poor recollection of information. To optimise academic success, it is vital to prioritise sufficient, high‑quality sleep as an integral part of your study routine.
Have a growth mindset
While it's natural to be preoccupied with concerns about success or failure, fixating on these outcomes won't contribute to your progress. Instead, focus on cultivating a growth mindset. A growth mindset recognises that our abilities and intelligence are not fixed, but can be developed through dedication and hard work. Rather than becoming disheartened or discouraged by initial difficulties in grasping concepts, embrace challenges and setbacks as valuable opportunities for learning rather than viewing them as failures. When you adopt a growth mindset, you become more resilient, motivated, and open to learning new concepts.
Stop revising an hour before your exam
We recommend you stop revising an hour before your exam. Stopping your revision at this point isn't neglecting your studies, but rather optimising your performance. Studying right up to the last minute can make your brain feel overwhelmed which can lead to confusion and anxiety. Starting your exam with a clear and rested mind puts you in a better position to tackle exam questions.
TOP MARKS
To make it easier for you to remember the key points we've covered in this article, we've come up with a "TOP MARKS" mnemonic that sums them up.
T - Time Management: Pace yourself wisely.
O - Options: Eliminate clearly wrong answer options.
P - Practice: Complete as many practice questions as possible.
M - Mental Focus: Concentrate fully on each question, stay present.
A - Attitude: Embrace a growth mindset.
R - Relax: Keep calm.
K - Know the Material: Be thoroughly familiar with the subject matter.
S - Sleep: Get a good night's sleep for improved retention, recollection and concentration.
Recommended Reading
IMC Official Mock Exam Papers by CFA UK
Best Exam Preparation Tips using SWOT Analysis by Alla Volodina
IMC Calculator Policy by CFA UK
IMC Test Taker Tips by CFA UK
The Ultimate Test Taker’s Guide to Pearson VUE's Texas Instruments TI‑30XS On-Screen Calculator by Easy Adulthood
The Ultimate Test Taker’s Guide to Navigating the Computer‑Based IMC Sample Test by Easy Adulthood