SIE practice questionmediumLOI/ROA
An investor has previously purchased $30,000 in a mutual fund family and wants to invest $20,000 more to reach a $50,000 breakpoint. Which privilege allows the investor to receive the reduced sales charge immediately without an additional agreement?
- ADividend reinvestment
- BLetter of Intent
- CSwitching privilege
- DRights of Accumulation✓ Correct answer
Explanation
Why D — Rights of Accumulation
Rights of Accumulation allow an investor to combine current and prior eligible holdings to qualify for a breakpoint. A Letter of Intent is a future purchase commitment rather than credit for past purchases.
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