IFSE Institute CIFC Exam - Topic 7 Question 16 Discussion

Actual exam question for IFSE Institute's CIFC exam

Question #: 16
Topic #: 7

[All CIFC Questions]

Which of the following statements regarding mutual fund fees is correct?

ARedemptions are made from units held by investors to pay trailer fees.

BTrailer fees are only paid to mutual fund dealers when a purchase is made.

CThe mutual fund dealer receives trailer fees based on the value of assets under management.

DTrading commissions are paid from the management fee.

Show Suggested Answer

Suggested Answer: C

by Franklyn at Apr 01, 2026, 01:51 PM

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2 days ago

I’m not entirely sure, but I feel like redemptions don’t directly pay trailer fees. I might be mixing it up with something else we studied.

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8 days ago

I think I remember that trailer fees are ongoing, so they might be based on the assets under management, which makes me lean towards option C.

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