100+ Free CMFC Practice Questions

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Which characteristic best distinguishes an open-end mutual fund from a closed-end fund?

It trades intraday on a stock exchange at a market price

It continuously offers and redeems shares at the next computed NAV

It holds a fixed portfolio of securities until a defined termination date

It is sold only to accredited investors under a private-placement exemption

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2026 Statistics

Key Facts: CMFC Exam

100

Final-Exam Questions

CFFP CMFC course

70%

Passing Score

CFFP CMFC course

~10 weeks

Historical Course Length

CFFP CMFC catalog

8 topics

Content Areas

CMFC curriculum outline

~$1,300

Approximate Tuition

CFFP/Kaplan pricing (verify)

16 CE / 2 yrs

Renewal Requirement

CFFP designation renewal policy

The Chartered Mutual Fund Counselor (CMFC) designation is a mutual-fund-focused credential historically administered by the College for Financial Planning (now part of Kaplan). Candidates study eight content areas: mutual fund basics and structure, fund types by asset class, fees/loads/share classes, fund selection, ETFs and index funds, taxation of fund distributions, portfolio application, and regulation. Historical pass rates run near 70% on a 100-question final. Candidates should verify current CMFC enrollment availability with Kaplan, as the College for Financial Planning catalog has shifted course offerings; FINRA and Credly still recognize the credential.

Sample CMFC Practice Questions

Try these sample questions to test your CMFC exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which characteristic best distinguishes an open-end mutual fund from a closed-end fund?

A.It trades intraday on a stock exchange at a market price

B.It continuously offers and redeems shares at the next computed NAV

C.It holds a fixed portfolio of securities until a defined termination date

D.It is sold only to accredited investors under a private-placement exemption

Explanation: Open-end funds continuously offer new shares and redeem them at the next-calculated net asset value (forward pricing under Rule 22c-1). Closed-end funds issue a fixed number of shares in an IPO and then trade on an exchange at premiums or discounts to NAV.

2Which investment company type holds a fixed, unmanaged portfolio of securities and has a defined termination date?

A.Open-end mutual fund

B.Closed-end fund

C.Unit investment trust (UIT)

D.Exchange-traded fund (ETF)

Explanation: A unit investment trust is an unmanaged investment company that purchases a fixed portfolio of securities and holds them until a stated termination date. UITs have no portfolio manager making ongoing buy/sell decisions, and units are typically redeemable with the trust.

3Net asset value per share for an open-end mutual fund is calculated as:

A.(Total assets + total liabilities) divided by shares outstanding

B.(Total assets - total liabilities) divided by shares outstanding

C.Market price minus the front-end sales load

D.Total fund expenses divided by total assets

Explanation: NAV per share equals (assets minus liabilities) divided by shares outstanding. Open-end mutual funds compute NAV at least once each business day, typically at 4:00 p.m. ET when U.S. equity markets close.

4Under SEC Rule 22c-1, what price does an investor receive when buying open-end mutual fund shares at 2:30 p.m. ET on a normal trading day?

A.The NAV from the prior business day's close

B.The NAV calculated at 2:30 p.m. ET

C.The next NAV calculated, typically at 4:00 p.m. ET that day

D.The fund's intraday market price at 2:30 p.m. ET

Explanation: Forward pricing under Rule 22c-1 requires that purchase and redemption orders for mutual fund shares be priced at the next NAV computed after the order is received. An order placed before the 4:00 p.m. cutoff receives that day's closing NAV.

5Which document must a mutual fund deliver to investors and contains a fund's investment objectives, fees, and risks?

A.Statement of Additional Information (SAI) only

B.Form ADV Part 2

C.Statutory or summary prospectus

D.Annual Form 10-K

Explanation: Under the Securities Act of 1933 and Investment Company Act of 1940, a mutual fund must deliver a prospectus describing the fund's objectives, strategies, fees, risks, and performance. The summary prospectus rule (Rule 498) allows delivery of a short-form summary as long as the full statutory prospectus is available online.

6The Statement of Additional Information (SAI) for a mutual fund:

A.Replaces the prospectus once delivered

B.Must be physically delivered with every prospectus

C.Contains additional detail and is delivered free upon request

D.Is required only for closed-end funds

Explanation: The SAI provides additional information not required in the prospectus, such as detailed fund operations, officer/director information, and tax disclosures. Funds must provide the SAI free of charge upon investor request.

7Under the Investment Company Act of 1940, an open-end management investment company is commonly known as:

A.A unit investment trust

B.A face-amount certificate company

C.A mutual fund

D.A business development company

Explanation: The 1940 Act defines three types of investment companies: face-amount certificate companies, unit investment trusts, and management companies. Management companies are further divided into open-end and closed-end. The open-end management company is what the public knows as a mutual fund.

8A closed-end fund's market price is below its NAV. The fund is said to be trading at a:

A.Premium to NAV

B.Discount to NAV

C.Par to NAV

D.Markup to NAV

Explanation: Because closed-end fund shares trade on an exchange based on supply and demand rather than NAV, prices may diverge from NAV. A market price below NAV is a discount; a market price above NAV is a premium.

9Which statement about closed-end funds is most accurate?

A.They issue and redeem shares continuously at NAV

B.After the IPO, they trade on an exchange at market-determined prices

C.They are unmanaged and hold a fixed portfolio

D.They are limited to investments in money-market instruments

Explanation: Closed-end funds raise capital through an initial public offering and then list on an exchange. After the IPO, the share count is essentially fixed and the secondary-market price is set by supply and demand, often differing from NAV.

10A mutual fund computes its NAV at the close of business and processes a buy order received at 3:55 p.m. ET. Under forward pricing, the order will be executed at:

A.Yesterday's closing NAV

B.Today's 4:00 p.m. ET NAV

C.Tomorrow's 4:00 p.m. ET NAV

D.The midpoint of yesterday's and today's NAV

Explanation: An order received before the fund's pricing cutoff (typically 4:00 p.m. ET) receives the next NAV calculated, which is that day's closing NAV. An order received after the cutoff receives the following business day's NAV.

About the CMFC Exam

The CMFC designation, originally co-developed by the College for Financial Planning and the Investment Company Institute, focuses on practical mutual fund product knowledge. The curriculum covers fund structures, asset-class fund types, share classes and sales charges, fund selection, ETFs and index funds, taxation of distributions, portfolio application, and the regulation of mutual fund recommendations.

Assessment

100-question final exam inside the online designation program

Time Limit

Final Exam (online, 2 hours)

Passing Score

70%

Exam Fee

~$1,300 (CFFP/Kaplan); verify enrollment status (College for Financial Planning (Kaplan))

CMFC Exam Content Outline

15%

Mutual Fund Basics and Structure

Open-end vs closed-end vs UIT, Investment Company Act of 1940, daily NAV pricing, forward pricing under Rule 22c-1, prospectus and SAI.

20%

Fund Types by Asset Class

Equity (growth/value/blend, large/mid/small cap, international, EM, sector), bond (govt, corp, high-yield, muni, floating rate), balanced, money market, target-date and lifestyle funds.

15%

Fees, Loads, and Share Classes

Class A/B/C/I/R structures, 12b-1 fees, breakpoints, ROA, LOI, FINRA Rule 2341 sales-charge cap, expense ratio components, NTF programs.

15%

Mutual Fund Selection

Performance metrics (alpha, beta, Sharpe ratio, R-squared, tracking error), expense ratio, turnover, tax cost ratio, Morningstar style box, style drift.

10%

ETFs, ETNs, and Index Funds

Creation/redemption with Authorized Participants, in-kind tax efficiency, intraday trading, ETN credit risk, smart beta and factor weighting.

10%

Taxation of Mutual Fund Distributions

Form 1099-DIV reporting, qualified dividends, long- and short-term capital gain distributions, return of capital, wash-sale rule, buying the dividend.

10%

Portfolio Application and Asset Allocation

Modern portfolio theory, strategic vs tactical allocation, rebalancing, asset location, core-satellite, dollar-cost averaging, sequence-of-returns risk.

Regulation

Investment Company Act of 1940, Investment Advisers Act, FINRA suitability, Reg BI's four obligations, Form CRS, breakpoint disclosure, CFFP Code of Ethics.

How to Pass the CMFC Exam

What You Need to Know

Passing score: 70%
Assessment: 100-question final exam inside the online designation program
Time limit: Final Exam (online, 2 hours)
Exam fee: ~$1,300 (CFFP/Kaplan); verify enrollment status

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CMFC Study Tips from Top Performers

1Master the three investment company types first. Knowing how open-end mutual funds, closed-end funds, and UITs differ in pricing, share creation, and management is foundational to the rest of the exam.

2Memorize the share-class trade-offs. Class A vs Class C math (front-end load vs higher 12b-1) and breakpoint mechanics (ROA, LOI) appear in many CMFC suitability questions.

3Practice the tax characterization of every distribution: qualified vs ordinary dividends, long- vs short-term capital gain distributions, and return of capital. Map each one to its 1099-DIV box.

4Learn the ETF creation/redemption mechanism and why in-kind redemptions make ETFs more tax-efficient than open-end mutual funds; this is a high-yield CMFC topic.

5Drill Reg BI's four obligations (Disclosure, Care, Conflict, Compliance) and Form CRS purpose. Suitability and best-interest questions sit at the intersection of regulation and portfolio recommendations.

Frequently Asked Questions

How many questions are on the CMFC exam?

The CMFC final exam contains 100 questions delivered online. Historically the exam was tied to a roughly 10-week self-study course developed by the College for Financial Planning and the Investment Company Institute.

What score do I need to pass CMFC?

Candidates need a 70% or higher on the CMFC final exam to earn the designation. Historical reporting suggested first-attempt pass rates near 70%. Always confirm the current scoring policy with Kaplan/College for Financial Planning at enrollment.

Is CMFC still available to new candidates in 2026?

CMFC is still recognized by FINRA and Credly, but Kaplan has restructured the College for Financial Planning catalog over the past several years and the active enrollment status of CMFC may be limited. Candidates should verify current enrollment availability directly with Kaplan before purchasing study materials.

How much does the CMFC program cost?

Program tuition has historically run near $1,300 when sold through CFFP/Kaplan. Tuition varies, may bundle eBook materials, and changes from time to time, so confirm current pricing on the Kaplan wealth-management designation page before enrolling.

How is CMFC different from AAMS or APMA?

AAMS and APMA cover the broader asset-management process (planning, allocation, taxes, retirement, insurance, estate). CMFC is narrower: deep mutual fund product knowledge, including structures, share classes, ETFs, taxation of distributions, and Reg BI as it applies to fund recommendations.

Does CMFC count for CFP continuing education?

Yes, the CMFC course has historically been approved for CFP Board continuing education credit, and ongoing CMFC renewal generally requires 16 hours of continuing education every two years plus a renewal fee, consistent with other CFFP designations.