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April 4, 2008, Newsletter Issue #112: Mutual Fund Breakpoints
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Tip of the Week
Find out if you are getting the mutual fund breakpoint discount that you're entitled to. The NASD requires that investors be given a discount on front-end mutual fund loads if they invest larger amounts of money. Different amounts of money entitle you to greater load discounts. The investment amounts at which the discount changes are called "breakpoints."
Ask your broker for a breakpoint schedule to determine whether you received the breakpoint discount that you deserved. If you didn't, you should get a refund from your broker.
The NASD also prohibits brokers from pushing you to invest just below a breakpoint in order to earn more of a commission from you.
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