SIE practice questioneasyMutual Funds - Letter of Intent
An investor who plans to invest $45,000 over 13 months in a mutual fund can receive a sales charge reduction immediately by signing a:
- ALetter of intent✓ Correct answer
- BRights of accumulation agreement
- CDeferred sales charge waiver
- DDistribution agreement
Explanation
Why A — Letter of intent
A letter of intent allows investors to qualify for reduced sales charges upfront by committing to a larger investment over a set period. ROA applies to existing holdings, and C/D do not provide immediate reductions.
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