Chapter 10

Delivering Diversification with Packaged Securities


Bullet Taking advantage of management investment companies

Bullet Understanding face-amount certificate companies and UITs

Bullet Reviewing REITs

Bullet Looking at annuities

Bullet Examining life insurance

Bullet Reviewing investment company rules

Diversification is key when you’re helping customers set up a portfolio of securities, and it’s fairly easy when your customer has a good deal of money to invest. But what if an investor has limited resources? Certainly, such investors can’t afford to buy several different securities, and you don’t want to limit your customer to only one (heaven forbid it should go belly up). Packaged securities to the rescue! These securities, such as open-end funds, closed-end funds, face-amount certificate companies, UITs, real estate investment trusts (REITs), and annuities, offer variety within one security by investing ...

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