SIE practice questioneasyMutual Funds - Rights of Accumulation
Rights of Accumulation (ROA) in mutual funds allow investors to:
- AReceive higher dividends for larger investments
- BInvest without paying any sales charges
- CAvoid capital gains taxes on redemptions
- DCombine previous and current investments to qualify for sales charge discounts✓ Correct answer
Explanation
Why D — Combine previous and current investments to qualify for sales charge discounts
ROA allows both past and present investments to count toward sales charge breakpoints. It does not remove charges entirely (B), affect taxes (C), or increase dividends (D).
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