Question of the Week

Under the Investment Company Act of 1940, which of the following is not a formal classification?

a) Unit Investment Trust
b) Face Amount Certificate Company
c) Management Investment Company
d) Mutual Fund

Answer:

The correct answer is d.

A mutual fund is technically registered under the ’40 Act as an open-end management investment company. It is a sub-category of the formal classification; Management Investment Company. All the others are classifications.