Brief History: The first official mutual fund (open-ended) was introduced in the United States of America in the 20th century. The creation of the Massachusetts Investors’ Trust in Boston, Massachusetts, announced its arrival in 1924. The fund went public in 1928, eventually creating the mutual fund firm, known as MFS Investment Management. State Street Investors’ Trust was the custodian of the Massachusetts Investors’ Trust. Later, State Street Investors started its own fund in 1924, under the leadership of Richard Paine, Richard Saltonstall, and Paul Cabot. Saltonstall was also affiliated with Scudder, Stevens and Clark, an outfit that would launch the first no-load fund in 1928. The year 1928 also saw the biggest advancement in the history of US Mutual Fund, Creation of the Wellington Fund. Wellington—which is now part of Vanguard—was the first mutual fund to own stocks and bonds in one ticker. By the end of 1929, there were 19 open-ended mutual funds and roughly 700 closed-end funds in the U.S. With the stock market crash of 1929, the dynamic began to change as highly-leveraged closed-end funds were wiped out and small open-end funds managed to survive. Expansion & Regulation: Taking into account the growth of Mutual Fund Industry, Securities and Exchange Commission (SEC) is created and Securities Act was passed in 1993. In order to protect the investors’ interest and better regulation of MF Industry, Securities Exchange Act was enacted in 1934 and Investment Company Act was put in place in 1940. Since 1950s Mutual Fund Industry continued to expand in the US. By 1951, there were more than 100 mutual funds operating and more than 150 additional funds were created. The 1960s saw the birth of aggressive growth funds, which bet on high tech stocks. The 1970s saw the creation of Index Fund i.e. a mutual fund that would hold all the stocks of a particular market measure. William Fouse and John McQuown of Wells Fargo established the first index fund in 1971. However, it was Vanguard’s John Bogle who made it memorable in 1974 by offering it to retail investors. The first money market fund, The Reserve Fund also debuted in 1971, while 1976 saw the first municipal bond launch. Recent Developments: Mutual Funds continued to evolve in the 1990s as well. Exchange Traded Funds (ETFs) were created in 1993. Despite the 2003 mutual fund scandals and the global financial crisis of 2008-2009, mutual funds play a key role in U.S. household finances. At the end of 2016, 22% of household financial assets were held in mutual funds. Their role in retirement savings was even more significant since mutual funds accounted for roughly half of the assets in individual retirement accounts, 401(k)s and other similar retirement plans. As of June 30, 2017, the mutual fund industry had approximately $17.4 billion in total assets, a gain of nearly 10% when compared to the same day one year earlier, a majority which has come from the equity funds. Owing to the strong returns (around 15-20 percent) generated by them. Nearly 54% of the total mutual fund assets belong to the equity funds and the rest is split among bond, money market, and balanced funds. The number of mutual funds in existence has fluctuated since its peak in 2001. That number shrank to 7,556 in 2010 but has since risen to 8,049 in 2017. Currently, 59% of funds focus on equities, 27% are fixed-income, 9% are balanced funds and the remaining 5% are money market funds. Despite the threats presented by ETFs, challenging govt. regulations, the US mutual fund industry remains healthy and fund ownership continues to grow.

Q-1 Why should I buy term life insurance?
Term insurance offers one of the most affordable ways to protect your family’s finances if something were to happen to you. It offers a death benefit and some plans even have permanent disability riders. Many insurance companies offer Term insurance for a period of 5, 10, 15, 20 and 30 years thus offering relatively long Term of coverage. You should choose a term that at least covers you for the earning years of your life, i.e. 58 – {your current age}.

Q-2 What are term life insurance disadvantages?
Although the premium of term insurance is very low at the younger age, once the policy term expires after the maximum duration, premiums increase as they are primarily age-related. Generally, the policy doesn’t offer cash value or paid-up insurance so nothing is paid to the insured if he survives the policy duration

Q-3 When is term life insurance the right choice?
If you wish to have a life insurance with good coverage without having to pay the large amount as premium, for a fixed duration, term insurance is an ideal option. It is most suitable to cover your fixed goals that may disappear over time.

Q-4 How much term life insurance do I need?
Your coverage need will depend on your individual circumstances. Factors you should consider include anticipated final expenses, living expenses for your surviving family members, any outstanding loans (e.g. auto and credit cards), the outstanding balance on your mortgage, anticipated education costs for your children, estate taxes, and business continuation expenses.

Q-5 What affects the premium rates of my term life insurance?

Ans-Factors affecting the premium of term life insurance are:
• Age of the insured – Life insurance premiums are age-linked. Younger the person lesser the premium. Life insurance premiums vary for different age brackets.
• Smokers or non-smokers – For many insurance companies, premiums are different for smokers and non-smokers. Smokers or tobacco users may have to pay higher premiums depending on the insurance company norms.
• Sex of the insured– term insurance for males will cost more than that for females for the same sum assured.
• Medical conditions – Medical condition of the person being insured is important and medical check-up compulsory for term life insurance. The premium may vary as per the individual medical condition.
• Dangerous hobbies – If you indulge in dangerous hobbies like parachute jumping, race car driving etc. you might either be declined insurance or may have to pay the higher premium based on the insurance company policy.

Q-6 Can the premium of my term insurance change?

ANS- Premium of a term insurance remains the same throughout the term of the policy provided all other factors remain the same.

Q-7 Is medical examination necessary for the term insurance?
ans-medical examination is necessary for all term insurance.

Q-8 Is my term life insurance policy convertible?
Many term life insurance policies are convertible to other traditional plans like endowment plans or money back plans etc. Convertible policies can generally be converted to permanent policies within a specified period of time from policy issue, without providing new evidence of insurability (unless you increase your benefits). It needs to be identified at the time of buying the policy for the convertibility feature.
Q-9 What is the Accidental Death Benefit rider?

ANS-The accidental death benefit rider is an optional policy provision where in event of death due to an accident, an additional amount is paid by the insurance company. This amount is over and above the basic sum insured that the beneficiary will get for your term insurance.

Q-10 What is the Waiver of Premium rider?
The waiver of premium rider is an optional provision that protects your life insurance policy to be cancelled even when you are not able to pay the premiums in event of your total disability. The payment of life insurance policy’s premium is waived off.

Q-11 What is a p re-medical exam and how do I schedule one?

ANS-To take the term life insurance, you need to undergo a medical examination called the pre-medical. A basic pre-medical exam includes the following:
• Height/weight measurements
• Blood pressure readings
• Heart rate readings
• Urine sample
• Blood sample
• Medical history questionnaire
After receiving your completed application form, the insurance company representative contacts you to arrange your exam at a time and location most convenient to you.

Q-12 can I take more than one term plan?
Yes, you can take more than one term insurance plan. It needs to be declared to the insurance companies regarding the same


CMT Level 1 Study Material

As a matter of fact you can watch live market trading that helps you to connect with CMT. Join a Technical Analysis Course which works on real time markets by using tools & techniques . That’ll give you behavioural understanding of real time Share market. Understanding the money management by real time trading or investment activity. As we know CMT is an MCQ Exam & ask question on application level. Create short notes of Course Content. Get PPT based Short Notes & note interpretation of tools & Techniques on technical analysis. Short Notes help you out to quick revision at the CMT exam time. CMT Books have very complicated language & course content is not properly aligned as it takes topics from various books of different writers. 

So we have to take individual topics and understand concepts in simple, Concise and Clear manner. Take content from various books or websites like Investopedia or Stock Charts on Each Topic for in-depth understanding. Apply tools & techniques with the help of Technical analysis or trading software’s. Read Books twice as MCQ can be created from a single line. while study mark important topics.