SIE practice questionmediumMutual Funds
A customer wants to invest in a professionally managed, diversified portfolio with no sales charges on purchases or redemptions. Which investment company type is most suitable?
- ANo-load mutual fund✓ Correct answer
- BClosed-end fund in the secondary market
- CExchange-traded fund (ETF)
- DUnit Investment Trust (UIT)
Explanation
Why A — No-load mutual fund
A no-load mutual fund has no sales charges and offers professional management and diversification. Closed-end funds and ETFs may have trading commissions. UITs are unmanaged once formed.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Companies & Packaged Products questions
- A registered representative recommends a speculative small-cap stock to a risk-averse retiree. Which principle is most…
- Which feature is unique to Unit Investment Trusts (UITs) compared to mutual funds and closed-end funds?
- Which feature distinguishes a Unit Investment Trust (UIT) from mutual funds and closed-end funds?
- Which investment company type issues redeemable shares and has a fixed portfolio?