About This Chapter
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Earning College Credit
Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the Series 7 Exam: Study Guide & Practice course
- Advertising & Public Communication in the Securities Industry
- The New Issues Market
- New Issue Regulations in the Securities Industry
- Brokerage Account Types & Restrictions
- Retirement Plans & Tax-Advantaged Accounts
- Handling Customer Investment Information & Discretionary Accounts
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Customer Investment Profiles
- Analyzing Customer Financial Statements
- Understanding Equity Securities
- Tax Treatment of Equity Securities Transactions
- Variable Life Insurance & Annuities
- Real Estate Investment Trusts
- Direct Participation Programs
- Understanding Options in Investing
- Debt Securities
- Investing in Corporate Bonds
- Municipal Securities
- Municipal Securities Analysis & Regulations
- Registered Hedge Funds
- Asset-Backed Securities
- U.S. Government Agency Securities
- Investment Product Disclosures
- Customer Updates & Record Retention
- Customer Transactions & Confirmations
- Transactional Delivery Obligations & Settlement Procedures
- Investment Disputes & Customer Complaints
- Addressing Margin Issues