Which of the following statements are TRUE for both mutual funds and variable annuities that are in the accumulation phase?

Which of the following statements are TRUE for both mutual funds and variable annuities that are in the accumulation phase?



I Distributions are taxable to the holder in the year the distribution is made

II The underlying portfolios are managed

III The Investment Company Act of 1940 is the regulating legislation

IV The return to investors is dependent on the performance of the securities in the underlying portfolio


A. I and II only

B. III and IV only

C. II, III, IV

D. I, II, III, IV



Answer: C.

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