IFC CSI 2025: Chapter 16 Summary on Temporary Fire Safety
Measures
A charge levied by some mutual funds when clients close their accounts. - correct answer
✔✔account closing fees
A plan offered by a mutual fund company that enables investors to make automatic periodic
purchases of units of a particular mutual fund. - correct answer ✔✔accumulation plan
See Front-end Load = (A sales fee that the investor pays when the fund is purchased. This fee is
generally not charged by banks or trust companies and is based on the dollar value invested.) -
correct answer ✔✔acquisition fee
The deemed cost of an asset representing the sum of the amount originally paid plus any
additional costs, such as brokerage fees and commissions. - correct answer ✔✔adjusted cost
base
The person on whose life insurance benefits are based. - correct answer ✔✔annuitant
A sum of money invested with a life insurance company that is paid out to the investor based on
a predetermined formula. The annual payouts are composed of both the initial amount invested
and returns generated. - correct answer ✔✔annuity
A type of sales fee that is paid by the investor when the funds are redeemed or sold. This fee is
calculated on either the initial purchase value or the current price which includes any increase
in value. - correct answer ✔✔back-end load
( See Back-End Load) = A type of sales fee that is paid by the investor when the funds are
redeemed or sold. This fee is calculated on either the initial purchase value or the current price
which includes any increase in value. - correct answer ✔✔deferred sales charge
, Involves periodically (e.g., monthly) purchasing a fixed dollar amount of mutual fund units. As
the unit price fluctuates, so will the number of units purchased. By investing regular dollar
amounts in an increasing market, the average cost per unit tends to be lower over the long run.
- correct answer ✔✔dollar cost averaging
Costs that are directly borne by the investor. They fall into three categories: management fees,
operating expenses and sales charges. - correct answer ✔✔explicit costs
A type of systematic withdrawal plan that allows investors to receive a periodic fixed amount of
money through the redemption of units of their mutual fund. - correct answer ✔✔fixed-dollar
(constant) withdrawal plan
A systematic withdrawal plan that allows the mutual fund investor to receive money such that
over a specified period the mutual fund will be completely paid out. - correct answer ✔✔fixed-
period withdrawal plan
Is assessed by some mutual funds to discourage investors from redeeming their units shortly
after purchase or from switching between funds. - correct answer ✔✔frequent trading charge
A sales fee that the investor pays when the fund is purchased. This fee is generally not charged
by banks or trust companies and is based on the dollar value invested. - correct answer
✔✔front-end load
The mutual fund investment firm. - correct answer ✔✔fund sponsor
Trading costs, which are measured by brokerage fees and turnover. - correct answer ✔✔implicit
costs
Measures
A charge levied by some mutual funds when clients close their accounts. - correct answer
✔✔account closing fees
A plan offered by a mutual fund company that enables investors to make automatic periodic
purchases of units of a particular mutual fund. - correct answer ✔✔accumulation plan
See Front-end Load = (A sales fee that the investor pays when the fund is purchased. This fee is
generally not charged by banks or trust companies and is based on the dollar value invested.) -
correct answer ✔✔acquisition fee
The deemed cost of an asset representing the sum of the amount originally paid plus any
additional costs, such as brokerage fees and commissions. - correct answer ✔✔adjusted cost
base
The person on whose life insurance benefits are based. - correct answer ✔✔annuitant
A sum of money invested with a life insurance company that is paid out to the investor based on
a predetermined formula. The annual payouts are composed of both the initial amount invested
and returns generated. - correct answer ✔✔annuity
A type of sales fee that is paid by the investor when the funds are redeemed or sold. This fee is
calculated on either the initial purchase value or the current price which includes any increase
in value. - correct answer ✔✔back-end load
( See Back-End Load) = A type of sales fee that is paid by the investor when the funds are
redeemed or sold. This fee is calculated on either the initial purchase value or the current price
which includes any increase in value. - correct answer ✔✔deferred sales charge
, Involves periodically (e.g., monthly) purchasing a fixed dollar amount of mutual fund units. As
the unit price fluctuates, so will the number of units purchased. By investing regular dollar
amounts in an increasing market, the average cost per unit tends to be lower over the long run.
- correct answer ✔✔dollar cost averaging
Costs that are directly borne by the investor. They fall into three categories: management fees,
operating expenses and sales charges. - correct answer ✔✔explicit costs
A type of systematic withdrawal plan that allows investors to receive a periodic fixed amount of
money through the redemption of units of their mutual fund. - correct answer ✔✔fixed-dollar
(constant) withdrawal plan
A systematic withdrawal plan that allows the mutual fund investor to receive money such that
over a specified period the mutual fund will be completely paid out. - correct answer ✔✔fixed-
period withdrawal plan
Is assessed by some mutual funds to discourage investors from redeeming their units shortly
after purchase or from switching between funds. - correct answer ✔✔frequent trading charge
A sales fee that the investor pays when the fund is purchased. This fee is generally not charged
by banks or trust companies and is based on the dollar value invested. - correct answer
✔✔front-end load
The mutual fund investment firm. - correct answer ✔✔fund sponsor
Trading costs, which are measured by brokerage fees and turnover. - correct answer ✔✔implicit
costs
