Breakpoint

Breakpoint,

Definition of Breakpoint:

  1. Breakpoints are set at various levels to offer investors a discount on sales charges when they make larger investments. Breakpoints are determined by the mutual fund and integrated within the fund distribution process. They are typically offered for funds with a front-end sales charge but may be available for other types of sales charges as well.

  2. Breakpoints, for load mutual funds, are the dollar amounts for the purchase of the fund's shares that qualifies the investor for a reduced sales charges. Breakpoints offer investors a discount for making larger investments. The purchase may either be made in a lump sum or by staggering payments within a specified period of time. The latter form of investment purchase in a fund must be documented by a letter of intent.

  3. Point at which a benefit, charge, discount, or rate moves into the next bracket or level.

How to use Breakpoint in a sentence?

  1. Breakpoints for load mutual funds are the dollar amounts for the purchase of the fund's shares that qualifies the investor for a reduced sales charge.
  2. Breakpoints allow for reduced fees for large purchases, which often benefit institutional investors.
  3. Rights of accumulation (ROA) grant existing holders of mutual fund shares the potential for reduced loads (commissions) when purchasing more fund shares to reach breakpoints.
  4. Breakpoints are determined by the mutual fund and integrated within the fund distribution process. .

Meaning of Breakpoint & Breakpoint Definition