SIE practice questioneasyMutual Funds - Breakpoints
What is a breakpoint in a mutual fund?
- AA dollar amount at which an investor receives a reduced sales charge✓ Correct answer
- BA limit on the number of fund shares that can be bought
- CA minimum required balance in a fund
- DThe NAV when the market closes
Explanation
Why A — A dollar amount at which an investor receives a reduced sales charge
Breakpoint refers to the investment thresholds at which the investor qualifies for reduced sales charges. B, C, and D do not describe breakpoints accurately.
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