right of accumulation

Right of accumulation

Allow investors to combine prior mutual fund purchases with current purchases in the same mutual fund or related mutual fund family to qualify for a breakpoint and obtain a lower sales charge.

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right of accumulation

The right that is granted to buyers by some mutual funds permitting the buyers to count existing holdings of the fund along with new purchases when determining the size of the sales fee on the new shares. This right applies to funds that charge fees on a sliding scale, whereby the more shares that are purchased, the lower the fee that is charged on a percentage basis. Thus the fee charged on succeeding purchases is determined by all purchases, past and present, not just by new purchases.