Series 6 - Investment Company And Variable Contracts Products Representative Exam
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All of the following are true about principal-protected mutual funds EXCEPT:
They have high expense ratios
A
They hold a mixture of stocks and bonds
B
They allow new contributions during their guarantee periods
C
Most guarantee the initial investment minus any front-end sales loads
D
Explanations
Principal-protected mutual funds, unlike most other mutual funds, are closed to new contributions during their guaranteed (or protected) periods.