Breakpoint


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Breakpoint

For mutual funds, the point at which the amount invested reduces the sales charge is called the "breakpoint." Each mutual fund may have several breakpoints; the larger the investment, the greater the discount. Note that the actual reduction in the sales charge is known as the "breakpoint discount". Also, the term "breakpointing" is sometimes used to refer to the offering of breakpoint discounts. The practice of soliciting mutual fund purchases just below the breakpoint (to earn more commissions) is considered unethical and in violation of NASD rules. See: right of accumulation.

Breakpoint

In loaded mutual funds, a dollar amount an investor must buy into the fund in order to be eligible for a reduced load or sales fee. For example, if the breakpoint for a certain mutual fund is $50,000, and investments beyond that amount will halve the load, it becomes advantageous for an investor to invest $50,000 instead of, say, $45,000, because this will entitle him/her to half the load for the entire investment, and not just for the amount invested past $50,000. Mutual funds that allow investors to buy at just below the breakpoint may run afoul of Financial Industry Regulatory Authority regulations. An investment need not come all at once to pass the breakpoint; an investor putting two tranches of $25,000 into the above mutual fund will usually find his excess load refunded. See also: Right of accumulation.

breakpoint

The cumulative level of purchases of shares in a mutual fund that is required before an individual purchaser can qualify for a reduced sales commission. Compare letter of intent. See also right of accumulation.

Breakpoint.

A breakpoint is the level at which your account balance in a mutual fund company or the size of a new investment in the company's funds qualifies you to pay a reduced sales charge.

Fund companies that charge a percentage of the amount you invest as a front-end load, or sales charge, may offer this cost saving. They are not required to do so, but if they do use breakpoints, they must ensure that all clients who qualify get the discount.

In most cases, the first breakpoint is $25,000, with further reductions for each additional $25,000 or $50,000 purchase. For example, if the standard load were 5.5%, it might drop to 5.25% at $25,000, to 5% at $50,000, and perhaps to as low as 2.5% with an investment of $250,000.

In calculating breakpoints, some fund companies will combine the value of all of your investments in the mutual funds they offer. Other companies count the investments of all the members of your household or give you credit for purchases you intend to make in the future.

References in periodicals archive ?
When implemented, the on-chip debug logic is part of the actual microprocessor silicon, the on-chip debug system provides the means to set the internal or external breakpoints, checking the internal states of the cores, and single step through coding the special function registers.
This difference between breakpoints is most probably due to the number of strains tested in this work, but all strains classified as susceptible by the 30 mm breakpoint would also be classified as susceptible with the 23 mm breakpoint.
Comparing the zones of inhibition of the ODD test and the MIC of penicillin, the use of meningeal breakpoints showed that of the 257 isolates interpreted as susceptible to penicillin based on the latter criteria (the MIC), 238 (92.
11]), the boundary of the breakpoint junction (position 106 of the de novo assembled 213-bp region) contained several poorly annotated sequences (see online Supplemental Table 3).
2, the contour made with L1 and L2 is much smoother, thus breakpoint B is more likely to be connected with point A.
All isolates associated with meningitis that had been categorized under the former breakpoints as having intermediate susceptibility to penicillin were recategorized as penicillin resistant under the new breakpoints, increasing the number of resistant isolates from 45 (10.
Two statistics document how players react to breakpoint situations, the percentage of break-point chances they convert, and the percentage they save.
Additional information on every breakpoint and every switch is needed whether it is permitted to close this breakpoint (switch) a.
A superb volley set Henman up to take the score to 4-3 and the Briton secured a triple breakpoint with some clever baseline play in the next game.
The preliminary hypothesis for this project is that topo II causes breaks in the MLL translocation breakpoint region and in MLL partner genes, resulting in leukemogenic translocations.
Cat eye syndrome chromosome breakpoint clustering: Identification of two intervals also associated with 22q11 deletion syndrome breakpoints.
But it failed to make economic sense in the post-Internet bubble economy, and Breakpoint ultimately was broken off.