Question of the Week

In which of the following ways can investor qualify for a breakpoint?

I. Signing a Letter of Intent to reach a breakpoint in the next 13 months
II. Invest a large sum of money that reaches a breakpoint level
III. The right of accumulation, where a new purchase is added to the shares already owned
IV. The outstanding shares are closed and all sales charges are waived

a) II and III only
b) I, II, III, and IV
c) I, II, and III
d) I and II only


The correct answer is c):

A breakpoint allows an investor to qualify for a reduced sales charge based on the purchase size of an investment. There are three ways to qualify for breakpoints, they include: signing a letter of intent, investing a large sum of money, and the right of accumulation.