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Erudite AfricaCenter of Excellence
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Funds, derivatives, returns and risks

Module 03 / 5 · 70 min

Add fund units and derivatives to the toolkit, measure real returns against inflation, and complete the Level 1 capstone: where Kebede's ETB 100,000 should go.

In this module you will learn to

  • Explain how collective investment schemes work and calculate a net asset value per unit
  • Describe forwards, futures, options and swaps and the FX forwards now allowed in Ethiopia
  • Calculate nominal and real returns and explain inflation and liquidity risk
  • Compare a T-bill, a listed bank share and a savings deposit for a one-year investor
  • Explain the tax and foreign investor rules that affect returns on securities

Built on

  • Erudite Africa training module: Ethiopian Context, topic 2.c Securities, Levels 1 and 2 (October 2026)
  • Capital Market Proclamation No. 1248/2021; Commercial Code Proclamation No. 1243/2021; National Bank of Ethiopia Proclamation No. 1359/2025
  • ECMA Directives No. 980/2024 and 996/2024; Directive No. 1030/2024 and No. 1009/2024 as reported; ESX Rulebook (December 2024)
  • NBE directives as listed in the lessons: SBB/89/2024, SBB/92/2024, SBB/95/2025, SBB/98/2025, SBB/78/2021 (reported), FXD/04/2026
  • NBE Monetary Policy Committee release No. 7 (July 2026); Ministry of Finance Public Sector Debt Statistical Bulletin No. 56

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.