Investment Products and Features: Rapid Fire
Chapters in this video
- 0:00 Open-end funds versus ETFs: the redemption trap
- 1:34 UITs, interval funds, and the zero-management outlier
- 2:30 Class A versus Class B versus Class C share classes
- 4:42 Variable annuity risk split: separate account versus general account
- 5:18 The AIR rule that moves monthly payments
- 5:50 Rapid-fire numbers: 8.5%, 1.00%, 13 months, 7 days
- 7:34 Tax traps: exchanges, reinvestment, and return of capital
- 8:08 MSRB municipal fund securities: 529, ABLE, and LGIPs
- 8:55 Final rapid-fire recap
What this video covers
- Why open-end funds and Unit Investment Trusts (UITs) redeem at forward Net Asset Value (NAV) while closed-end funds and Exchange-Traded Funds (ETFs) trade on the secondary market
- How Class A, B, C, and no-load share classes differ on sales charges, 12b-1 fees, conversion rights, and which investor profile each fits
- When the 8.5% maximum sales charge applies, how 12b-1 fees are capped at 1.00% (0.75% distribution plus 0.25% service), and why no-load funds must stay at 0.25% or below
- What happens during accumulation versus annuitization in a variable annuity, and why the Assumed Interest Rate (AIR) is the only benchmark that moves the payment up or down
- Why exchanges within the same fund family are taxable events, why reinvested distributions do not defer tax, and how return of capital lowers cost basis instead of creating taxable income
- Which Municipal Securities Rulemaking Board (MSRB) securities are municipal fund securities (529 plans, Achieving a Better Life Experience (ABLE) accounts, Local Government Investment Pools (LGIPs)) and their reporting differences
- The 7 business day principal-review clock for deferred variable annuity applications, the 13-month Letter of Intent window with 90-day backdating, and the 7 calendar day redemption proceeds deadline
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