Break point
(Quantity Discount)
Break point - the dollar level of an investment in a mutual fund
where you as an investor are qualified for a reduction in the sales charge.
Both contributions and reinvestments will accumulate to reduce the next break point (technically this way it is not a refund).
There is a NASD rule that prohibits mutual fund salespeople from soliciting sales at a dollar amount within $1,000 of the break point. This is called break point sales.
Misc:
Break point letter of intent = 13 months. Backdated 90 days from original purchase date.
