Chapter 10
Delivering Diversification with Packaged Securities
In This Chapter
Taking advantage of management investment companies
Understanding face-amount certificate companies and UITs
Reviewing REITs
Looking at annuities
Reviewing additional topics tested
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 a customer’s money in a diversified pool of securities . . . for a cost, of course. A bit of profit-driven teamwork can ...
