Frequently Asked Questions

  1. What is the dollar minimum for initial and subsequent fund purchases?
  2. What is a breakpoint?
  3. What is a letter of intent?
  4. What is rights of accumulation?
  5. How can I calculate the cost basis (gain / loss) of my fund?
  6. What is a Wash Sale?
  7. Does Integrity Mutual Funds calculate cost basis for shareholders?
  8. How do capital gain or capital loss affect my mutual fund?
  9. What is a capital gains distribution?
  10. Why does the fund price drop when a capital gain is paid?
  11. Why do I have a capital gains distribution when my fund value is down?
  12. Why did I receive a 1099-INT on my municipal bond fund?
  13. How do I log into my account?
  14. What are 12b-1 fees?
  15. What are bond yields and distribution rates?
  16. What is a 7-day current yield?
  17. What is a 7-day effective yield?
  18. What is a 30-day SEC yield? (also referred to as current yield)
  19. What is a monthly distribution rate?
  20. What is an annual distribution rate?
  21. What is public offering price (POP)?
  22. What is a prospectus?
  23. What is a mutual fund?
  24. What is a front-end sales charge?
  25. What is a back-end sales charge?
  26. What is a bond?
  27. What is a government bond?
  28. What is ex-dividend?
  29. What is dollar cost averaging?
  30. Significant dates to remember.

(This information should not be construed as tax advice or counsel. You should consult with your tax professional for advice.)

1. What is the dollar minimum for initial and subsequent fund purchases?

Integrity Mutual Funds has a minimum initial investment for all funds of  $1,000 with subsequent investments of $50.00 – except in the case of monthomatic purchases which are $50.00 for both initial and subsequent investments.

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2. What is a breakpoint?

A breakpoint is the dollar value of an investment in a mutual fund or several funds at which a purchaser qualifies for a reduction in sales charges. Assets from all share classes of Integrity funds that are within linked accounts (Same tax-ID# or related accounts) may be combined for purposes of determining the applicable breakpoint.

To satisfy the requirements to reach a specific break point one can:

  1. Combine investments in Integrity Funds with spouse, children and grandchildren under 21 years of age.
  2. Buy class "A" shares of two or more Integrity Funds at the same time.
  3. Use a Letter of Intent to purchase the shares. (See Letter of Intent).
  4. Use Rights of Accumulation along with (a) and or (c) above. (See ROA)

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3. What is a Letter of Intent?

An investor may qualify for reduced sales charge immediately by stating, in writing, his or her intention to invest a breakpoint-qualifying amount in one or more of the Funds during a 13-month period.

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4. What is Rights of Accumulation?

Rights of Accumulation (ROA) is the aggregate value of existing shares of a mutual fund or funds that is used to determine the reduced sales charge and breakpoint discount.

With ROA, the sales charge on Class A shares decreases, at certain breakpoints, as the amount of your investment increases.

Breakpoints start at $50,000 (Refer to the BD guide for specific breakpoint information.) on Class A only.

Typically, accounts with aggregate values, which exceed $1 million, qualify for Class A shares at Net Asset Value (NAV)

In order to meet a breakpoint and purchase Class A shares at a decreased sales charge under Rights of Accumulation, you may combine the current value of Integrity Mutual Funds shares you already own.

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5. How can I calculate the cost basis (gain / loss) of my Fund?

The most common methods for calculating cost basis are: Average Cost, First-In, First-Out, and Specific Identification.

a. Average Cost
In order to calculate your Average Cost, you will need a complete history of the activity in your account since you opened it, including all purchases, dividend and capital gain reinvestments, exchanges, and redemptions. At the time of a sale, redemption, or exchange, the total amount you paid for all shares (the cost of the shares) is divided by the total number of shares in your account to determine the average cost (the average price you paid). The average cost per share is then multiplied by the number of shares sold, redeemed, or exchanged to determine the total cost of the shares. This amount is your Average Cost. When this amount is subtracted from the gross proceeds from the sale, the result is the gain or loss on the transaction.

b. First-In, First-Out (FIFO)
With this method, shares are sold in the order in which they were purchased. Example: You bought 100 shares at $10.00 per share and later100 shares at $9.10. You then sold 150 shares. Your cost basis would be 100 x $10.00 plus 50 x $9.10.

c. Specific Identification
This method enables you to specify exactly which shares you are selling at the time of the sale. This approach requires that you keep careful records of all your mutual fund share transactions.

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6. What is a wash sale?

A wash sale occurs when shares are redeemed at a loss and repurchased within a 61 day period, beginning 30 days before the sale and ending 30 days after the sale. Any loss resulting from the sale is disallowed by the IRS and must be added into the average cost basis of the newly purchased shares.

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7. Does Integrity Mutual Funds calculate cost basis for shareholders?

At the present time Integrity is not set up to calculate cost basis, however, a complete history of all account transactions can be provided to the shareholder or your tax advisor with the shareholder's written permission.

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8. How do capital gain or capital loss affect my mutual fund?

The principal value will fluctuate and shares when sold may be worth more or less than the original cost. The difference between the share price at time of purchase and the share price at time of sale is the capital gain or loss. The principal value is calculated at "NAV". "NAV" (Net Asset Value) is the dollar value of a single share of a fund, excluding any sales charges.

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9. What is a capital gains distribution?

Mutual funds make capital gain distributions because they are required by law to pass along net earnings and profits to their shareholders annually. Mutual fund managers buy and sell securities in the course of managing a portfolio and may incur a capital gain or capital loss with each sale. If gains exceed losses, the fund must distribute the net gains to its shareholders, as required by the IRS, in the form of a capital gains distribution.

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10. Why does the fund price drop when a capital gain is paid?

As fund managers buy and sell securities over the course of a year, the profits contribute to the rise of the Net Asset Value (NAV) of the fund's shares. Whenever that profit is paid out to shareholders in the form of a distribution, the fund's NAV, or share price, is reduced proportionately. Shareholders who choose to automatically reinvest all distributions received will receive additional shares equaling the amount of the distribution and the total account value will not be affected.

Example: An investor has 100 shares of a fund and the NAV is $10 a share, the account value is $1,000. If the fund pays a capital gains distribution of $1 a share, or $100 total, the NAV drops to $9 and the original shares are now worth $900. A shareholder who automatically reinvests the $100 capital gains distributions will acquire an additional 11.11 shares ($100 divided by $9). The end result is an account with 111.11 shares worth $9 each for a total of $1,000. The account value is maintained at $1,000.

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11. Why do I have a capital gains distribution when my fund value is down?

Realized capital gains must be distributed to mutual fund shareholders. Unrealized losses on assets held by the fund cannot offset realized gains.

(This information should not be construed as tax advice or counsel. You should consult with your tax professional for advice.)

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12. Why did I receive a 1099-INT on my municipal bond fund?

1099-INT was furnished in 2006 for the first time, if a client owned a Municipal Bond Fund. This was signed into law on May 17, 2006 as part of the Tax Increase Prevention and Reconciliation Act, which removed the exception for reporting of tax-exempt interest.

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13. How do I log into my account?

If you are a Mutual Fund customer, you can enroll for Account Access online by clicking on the "New Shareholder" button and completing the access request form. If you are already an online customer, enter your username and password.

For more information click on "Online User Guide" or if you have further questions please contact technical support at 1-800-601-5593 or direct at 1-701-857-0231.

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14. What are 12b-1 fees?

A mutual fund distribution plan under which a certain percentage of mutual fund assets, usually 25 basis points, can be used to pay distribution and marketing expenses or shareholder service fees.

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15. What are Bond Yields and Distribution Rates?

One of the main attractions of a bond fund investment is the stream of income that it provides. When investors compare different bond investments, they tend to look at the income potential, or yield, of the fund. However, there are a few different methods of calculating and stating yield, which may make it difficult to compare those investments.

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16. What is a 7-day Current Yield?

It is a yield calculated on the basis of income earned over a seven-day period and then annualized. Income earned during the seven-day period is assumed to be earned every seven days over a 52-week period and is stated as a percentage of investment.

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17. What is a 7-day Effective Yield?

It is calculated similarly to the 7-day current yield, however, income earned on the investment is considered to be reinvested and compounded over the course of a 52-week period. This makes the effective yield higher.

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18. What is a 30-day SEC Yield? (also referred to as Current Yield)

It is the standard method of calculation adopted by the Securities and Exchange Commission and imposed on all funds as standard. It represents net investment income earned by a fund over a 30-day period, expressed as an annual percentage, based on the fund's share price. Basically, the SEC "standardized" yield uses a fund's net income over the preceding 30 days to project an annualized yield - in theory, what you'd earn if you stayed in the fund for the next twelve months and it kept paying out at the same rate. Although that's not a very likely scenario, SEC yield does give you a yardstick for comparing the results of different funds from different fund companies.

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19. What is a Monthly Distribution Rate?

While the SEC yield's calculation is standardized, the formula for distribution rate - also called "distribution yield" - can vary. Most fund groups quote distribution rate as a monthly 30-day figure. Like SEC yield, a fund's 30-day distribution rate uses the previous month's income to project an annualized figure.

Even though SEC yield and 30-day distribution rate cover the same time period, it's not unusual for those two numbers to differ. One reason is the way they treat certain classes of securities. Preferred stock, bonds purchased at a discount or a premium, foreign bonds, and mortgage-backed securities are all handled differently by each calculation.

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20. What is an Annual Distribution Rate

Because of the potential discrepancies, many popular publications - Money Magazine and Morningstar, Inc.'s fund reviews, for example - prefer to use an annual distribution rate that represents the actual income paid out over the past twelve months.

Since they cover different time frames, the two methods usually produce different yields. For instance, in a falling interest-rate environment, a fund's 12-month distribution rate is likely to be higher than its 30-day rate, since the annual figure includes income earned during the prior months when rates were higher.

The annual distribution rate looks back at the actual payout, while the monthly distribution rate and the SEC yield try to predict the future.

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21. What is Public Offering Price (POP)?

The price at which mutual fund shares are sold to the public. It is the net asset value per share plus any sales charge.

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22. What is a Prospectus?

The disclosure document required by the Securities Act of 1933. It must be given to purchasers of securities that are registered with the SEC.

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23. What is a Mutual Fund?

A mutual fund pools the assets of multiple investors and utilizes a manager/strategist to purchase securities to achieve a common, pre-defined goal as set forth in a "Prospectus". With its pooled assets, mutual funds provide advantages that most individual investor would not be able to receive such as diversification and professional money management.

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24. What is a Front-end Sales charge?

A sales charge, usually deducted from your purchase payments. It is usually charged at the time of the purchase or in some cases upon redemption of mutual fund shares.

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25. What is a Back-end Sales Charge?

Often referred to as Contingent Deferred Sales Charge (CDSC) it is a sales charge usually deducted from your surrender value. It is charged at the time of redemption.

The amount of this type of sales charge normally depends on how long the investor holds his or her shares and typically decreases to zero if the investor holds his or her shares long enough.

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26. What is a Bond?

An IOU (debt security) issued by a company or government entity. The bond issuer promises to pay the bondholder a stated rate of interest up to the date of maturity, when the issuer promises to repay the principal.

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27. What is a Government Bond?

Debt securities issued by the U.S. Treasury or a federal agency.

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28. What is Ex-Dividend?

The period of time between the announcement of the dividend and the payment. A security becomes ex-dividend on the ex-dividend date set by the SEC, which is usually two business days before the record date (set by the company issuing the dividend).

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29. What is Dollar Cost Averaging?

An investment program that allows you to make regular (monthly, quarterly, semi-annual, or annual) level payments on your investment over time. The level payments will purchase more shares when their value is lower and fewer shares when their value is higher. Over time, the cost per share averages out to be less than if all purchases had been made at the highest value and greater than if all purchases had been made at the lowest value. If continued over an extended period of time, the dollar cost averaging method of investment reduces the risk of making purchases only when the price of shares is high. It does not guarantee a profit or protect against a loss.

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30. Significant Dates to Remember.

  • Thursday, December 31, 2015 - Last day for mutual fund sales to realize a gain or loss for 2015.
  • Friday, January 15, 2016 - Year-end statements are mailed by January 20th.
  • Monday, February 1, 2016 - Integrity Viking Funds begins mailing tax forms (1099-DIV in January and must be postmarked by the last business day in January. 1099-Bs will be mailed by February 15, 2016
  • Friday, April 15, 2016 - Last day to establish and contribute to a 2015 traditional IRA or Roth IRA.
  • Friday, April 15, 2015 - Last day to file federal tax return (without extensions).
  • Monday, May 31, 2015 - Form 5498 must be mailed by the last business day in May.

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© 2003-2017 Integrity Viking Funds
The mutual funds of Integrity Viking Funds are distributed by Integrity Funds Distributor, LLC, Member FINRA, and are available through licensed third-party Broker/Dealers. Integrity Funds Distributor, LLC is located at 1 Main Street North, Minot, ND 58703 (701) 852-5292.