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Exam ICWIM Topic 1 Question 77 Discussion

Actual exam question for CISI's ICWIM exam
Question #: 77
Topic #: 1
Back-end loading is often associated with:

Suggested Answer: B Vote an answer

* What is Back-End Loading?
* A fee structure where costs are charged when an investor sells out of an investment, typically in mutual funds or other collective investments.
* Why the Answer is B
* Collective investments, such as mutual funds, frequently use back-end loads as a way to encourage long-term investment.
* Why Other Options are Incorrect
* A. Bonds: Fees are not typically structured as back-end loads.
* C. Equities: Equities do not have fee structures similar to back-end loads.
* D. Real estate: Transaction costs in real estate are upfront, not back-end.
* ICWIM Study Guide, Chapter on Collective Investments: Discusses fee structures, including back-end loading.
* Investment Fund Literature: Explains back-end loads as a feature of mutual funds.
References

by Venus at Jan 18, 2025, 09:37 PM

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