Pooled Investment Characteristics: Rapid Fire
Chapters in this video
- 0:00 The share class mystery: which drains a client over decades
- 1:17 POP versus NAV: the sales charge math trap
- 2:30 The 8.5% maximum load and its three required benefits
- 3:39 12b-1 fees and the no-load threshold at 0.25%
- 4:38 Expense ratio inclusions and exclusions
- 5:32 Capital gains distributions versus REIT ordinary income
- 6:36 The 75/75/90 REIT qualification rule
- 7:03 Phantom tax and taxable fund exchanges
- 8:14 Rapid-fire fee and share class recap
What this video covers
- Why Class C shares are the most expensive choice for long-term investors despite having no front-end load, and which client profile matches each share class
- How to calculate the sales charge percentage correctly using the public offering price (POP), not the net asset value (NAV), and why the wrong denominator is always an answer choice
- What the 8.5% maximum front-end load requires: breakpoints, rights of accumulation (ROA), and dividend reinvestment at NAV
- When a fund can legally call itself "no-load" (12b-1 fee at or below 0.25%) and how that ceiling differs from the 1.00% maximum for Class B and Class C shares
- Why the expense ratio includes management fees, 12b-1 fees, and administrative costs but explicitly excludes sales loads and brokerage commissions
- How mutual fund capital gains distributions are always long-term based on the fund's holding period, while real estate investment trust (REIT) distributions are ordinary income
- What the 75/75/90 REIT qualification rule means for assets, income, and distribution requirements, and why fund exchanges within the same family are taxable events
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 65 course also includes adaptive practice questions and spaced-repetition flashcards, free through December 31, 2026.