PLANNING TO TAKE THE SERIES 65 EXAM? THEN STUDY AND KNOW THE VARIOUS MUTUAL FUND SHARE CLASSES!

If you plan on sitting for the Series 65 Exam, be prepared for test questions that ask about the various Share Classes for Mutual Funds. NASAA publishes a Content Outline or Test Specifications for the Series 65 Exam, and specifically lists knowledge of Share Classes in Section II (I) (1) of the Test Specifications.

Bob Eder in his Study for the Series 65 Exam discusses Share Classes of Mutual Funds. Here is an example of Bob Eder's treatment:

"Share Classes and OtherCharacteristics of Open End Funds                II(I) (1)

"Aprospectus for an open-end mutual fund must contain the investment objectivesof the fund. Is the fund looking for growth, conservation of capital, or both?Different mutual funds have objectives tailored-made to a certain segments ofretail investors. The prospectus must make a clear statement of the following,including a description of the share classes that the fund will issue:

1.        The share classes thatthe mutual fund will issue. Whether the shares beno-load? Class A, havinga front-end load? Willthey be Class C, havinga distribution charge? Or Class B,having a contingent deferred sales charge (CDSC)?

2.        The policiesof the mutual fund towards borrowing monies, purchasing on margin, sellingshort, trading options,etc. It must also list restrictions, i.e., what it may notdo, such as borrowing on margin,selling short, etc.

3.        The maximum sales charges,loads, or fees. Are there any breakpoints in the applicable salescharge, and if so, what are they?"

The Series 65 Exam covers Share Classes of Mutual Funds. NASAA's  revised Series 65 Test Specifications list Share Classes under Section II (I) (I), so expect questions on the Series 65 Exam.

Here is the link to NASAA's new Series 65 Test Specifications. 

Study for the Series 65 Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's book on Amazon.

For questions about Bob Eder's Series 65 manual,  Study for the Series 65 Exam,  or questions in general about the Series 65 Exam, or about Mutual Fund Share Classes, feel free to email Bob Eder at bobeder@bobeder.net.
Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. See Bob Eder's Author Page on Amazon.com.