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SIE: Investment Companies & Packaged Products
SIE practice questioneasyMutual Funds - Breakpoints

What is a breakpoint in a mutual fund?

  1. AA dollar amount at which an investor receives a reduced sales charge✓ Correct answer
  2. BA limit on the number of fund shares that can be bought
  3. CA minimum required balance in a fund
  4. DThe NAV when the market closes
Explanation

Why AA 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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