Pooled Investment Characteristics

Exam Weight: ~2 questions (2% of exam)

Prerequisite: Pooled Investments (types of investment companies, structures, regulations)

This unit builds on your knowledge of pooled investment types by teaching you how to analyze them. Understanding share classes, fees, pricing mechanics, tax implications, and liquidity shapes both exam performance and suitable client recommendations.

What You'll Learn

• Share classes (A, B, C, I, R) and breakpoints
• Liquidity across different pooled investment types
• Tax implications of fund distributions and exchanges
• Fee structures: loads, 12b-1 fees, and expense ratios
• NAV calculation, forward pricing, and discount/premium
• Benefits and risks of pooled investments
• Benchmarks, manager tenure, style drift, and comparisons
• Synthesis: Putting pooled investment characteristics together