SIE Exam Podcast Mutual Funds & Other Pooled Investments Episode 5

   • Series 7 Exam Prep Mutual Funds, REITs, ET...   2.1.4 Packaged Products • Investment companies  Types of investment companies − Closed-end funds − Open-end funds − Unit investment trusts (UITs) − Variable contracts/annuities Knowledge of: • Loads • Share classes • Net asset value (NAV) • Disclosures • Costs and fees • Breakpoints • Right of accumulation (ROA) • Letter of intent (LOI) • Net transactions • Surrender charges • Sales charges 2.1.5 Municipal Fund Securities • 529 Plans  Prepaid tuition  Savings plans • Local government investment pools (LGIPs) • ABLE accounts Knowledge of: • Municipal fund securities • Owner vs. beneficiary • Restricted use of plan assets • Tax advantages • Direct or adviser sold 2.1.6 Direct Participation Programs (DPPs) • Types of DPPs  Limited partnerships  Tenants in common (TIC) 8 Knowledge of: • Pass-through tax treatment • Unlisted • Generally illiquid 2.1.7 Real Estate Investment Trusts (REITs) • Types of REITs  Private  Registered, non-listed  Listed Knowledge of: • Real estate equity or debt • Tax-advantaged income without double taxation 2.1.8 Hedge Funds Knowledge of: • Minimum investment • Partnership structure • Private equity • Generally illiquid 2.1.9 Exchange-traded Products (ETPs) • Types of ETPs  Exchange-traded funds (ETFs)  Exchange-traded notes (ETNs) Knowledge of: • Alternative investments to mutual funds • Fee considerations • Active vs. passive 2.2 Investment Risks • Definition and Identification of Risk Types  Capital  Credit  Currency  Inflationary/purchasing power  Interest rate/reinvestment  Liquidity  Market/systematic  Non-systematic  Political  Prepayment • Strategies for Mitigation of Risk  Diversification  Portfolio rebalancing  Hedging