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Ch 12: Packaged Investment Products

About This Chapter

Get a comprehensive overview of packaged investment products with detailed knowledge of things like mutual funds, unit investment trusts, and open and closed-end funds along with key legal issues that are relevant to the topic in this series of lessons.

Packaged Investment Products - Chapter Summary

In this chapter, we will walk you through the topic of packaged investment products. You will get to know essential information about different types of mutual funds, exchange traded funds, and unit investment trusts. You will also get a solid grasp over the key legal issues involved as well as detailed information pertaining to closed- and open-end funds.

This chapter has been carefully created by expert instructors to help you gain a solid understanding of packaged investment products. When you are done with the lesson, you should be able to:

  • Know what packaged retail investment and insurance-based products are
  • Define, classify, and assess mutual funds
  • Be aware of the fees, charges and expenses associated with mutual funds
  • Know the definition and arbitrage information of exchange traded funds
  • Define a unit investment trust
  • Know the definition and characteristics of open-end and closed-end funds
  • Classify investment fund objectives
  • Be aware of legal aspects of investment advisors and investment company security

Our instructors have carefully prepared this study guide keeping in mind your success through the use of engaging lessons. Each lesson is accompanied by quizzes and transcripts that help you identify knowledge gaps. You can always monitor your progress through our intuitive Dashboard.

14 Lessons in Chapter 12: Packaged Investment Products
Test your knowledge with a 30-question chapter practice test
Packaged Retail Investment & Insurance-Based Products

1. Packaged Retail Investment & Insurance-Based Products

The lesson deals with investment in different packaged retail investments and insurance products. Learn about mutual funds, insurance, and the terms usually used while investing in them.

What is a Mutual Fund? - Definition, Types, Advantages & Examples

2. What is a Mutual Fund? - Definition, Types, Advantages & Examples

This lesson will define a mutual fund, a type of investment vehicle. Also in this lesson, various types of mutual funds will be explained, and advantages and examples of mutual funds will be explored.

Mutual Funds: Fees, Charges & Expenses

3. Mutual Funds: Fees, Charges & Expenses

Where can an investor look to determine a specific fund's costs? This lesson overviews the various fees, charges and expenses associated with mutual fund investing.

What is an ETF? - Definition & Arbitrage

4. What is an ETF? - Definition & Arbitrage

Exchange Traded Funds, or ETFs, have become a popular alternative to mutual funds for investors. Let's dig deeper into ETFs and the investment opportunities they create.

Unit Investment Trust (UIT): Definition & Example

5. Unit Investment Trust (UIT): Definition & Example

The investment community has invented many different investment packages to give investors wide choices. One that will be discussed in this lesson is unit investment trusts.

What is an Open-End Fund? - Definition & Characteristics

6. What is an Open-End Fund? - Definition & Characteristics

Mutual funds allow people to pool their resources in a portfolio of assets. In this lesson, we'll look closer at open-end funds, including how they're different from closed-end funds and their major characteristics.

What is a Closed-End Fund? - Definition & Examples

7. What is a Closed-End Fund? - Definition & Examples

In this lesson we will look at what a closed-end fund is and how it is structured. We all also review how it combines elements of both mutual funds and stocks.

Types of Investment Fund Objectives

8. Types of Investment Fund Objectives

Why does the U.S. alone have nearly 10,000 mutual funds? The answer lies in their underlying objectives and sub-objectives. In this lesson we will break down and examine the two major objective categories and some specific fund objectives.

Sales Practices for Investment Funds: Types & Characteristics

9. Sales Practices for Investment Funds: Types & Characteristics

This lesson deals with different sales practices in the investment industry such as dollar-cost averaging (DCA) and sales charges. Learn about breakpoints, market timing, and late trading.

Investment Fund Redemption: Definition & Overview

10. Investment Fund Redemption: Definition & Overview

This lesson discusses ways of receiving funds from investments before they reach maturity, including fund redemption, redemption price, conversion privilege, contingent deferred sales charge, and tenders.

Reinvestment of Dividend Income & Capital Gains Distributions

11. Reinvestment of Dividend Income & Capital Gains Distributions

In this lesson you will learn about the dividend income and capital gains distributions, how they can be reinvested back into the investments that pay them, and the power of reinvesting.

Tax Treatment of Mutual Funds: Description & Overview

12. Tax Treatment of Mutual Funds: Description & Overview

Mutual funds are a popular investment vehicle either directly or through employer sponsored retirement accounts. For those investing outside qualified retirement plans, tax considerations are an important facet of the fund choice process.

Investment Advisers Act of 1940: Definition & Summary

13. Investment Advisers Act of 1940: Definition & Summary

This lesson provides an overview of the Investment Adviser Act of 1940. It includes a discussion of its origins, provisions, and the organizations and individuals covered by the Act.

FINRA Rule 2341: Investment Company Securities

14. FINRA Rule 2341: Investment Company Securities

All kinds of deals are made when public offerings are being marketed. FINRA develops rules to ensure that everyone including the investor has all the information about the offering and everyone is treated fairly.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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