How long can a letter of intent be backdated?
Table of Contents
How long can a letter of intent be backdated?
to 90 days
Definition of Letter of Intent The letter of intent may be backdated up to 90 days from an initial purchase.
What is a statement of additional information?
Conveys information about an open or closed-end fund that some investors find useful. Funds are not required to provide investors with the SAI, but they must provide it for free upon request. Also known as “Part B” of the fund’s registration statement.
Which of these would cause a change in the net asset value of a mutual fund share?
Which of these would cause a change in the net asset value of a mutual fund share? A decline in the market value of the portfolio would reduce the assets of the fund without changing the number of outstanding shares.
What is 12b 1 fee?
So-called “12b-1 fees” are fees paid out of mutual fund or ETF assets to cover the costs of distribution – marketing and selling mutual fund shares – and sometimes to cover the costs of providing shareholder services.
What is breakpoint selling?
A breakpoint sale is the sale of a mutual fund at a set dollar amount that allows the fundholder to move into a lower sales charge bracket. Breakpoint sales provide fee discounts to investors based on investment breakpoint levels determined by the fund company.
What is a breakpoint fee?
Key Takeaways. A breakpoint is the dollar amount for the purchase of a load mutual fund’s shares that qualifies the investor for a reduced sales charge. Breakpoints allow for reduced fees for large purchases, which often benefit institutional investors.
Which is true with respect to a Statement of additional information?
A statement of additional information (SAI) contains information about a mutual fund that may not be found in its original prospectus. The SAI is used to disclose more detailed information and updated financials that may not be included in the broader prospectus.
What is Kim in mutual fund?
This Key Information Memorandum (KIM) sets forth the information, which a prospective. investor ought to know before investing. For further details of the scheme/Mutual Fund, due. diligence certificate by the AMC, Key Personnel, investors’ rights & services, risk factors, penalties & pending litigations etc.
Does dividend affect NAV?
The net asset value (NAV) of a fund declines when a dividend is paid as it lowers the value of the fund. This is a common occurrence and shouldn’t dissuade investors from choosing certain funds.
What is Rule 12b1?
In 1980, the Securities and Exchange Commission (SEC) adopted Rule 12b-1 under the Investment Company Act of 1940. This rule permits funds to compensate brokers and other financial intermediaries out of fund assets for services they provide shareholders related to the distribution of fund shares.
Are 12b-1 fees going away?
“The SEC Enforcement Division has effectively outlawed [12b-1 fees],” Lundy said.
Is breakpoint selling illegal?
Unfortunately, some brokers take advantage of investors and will try to intentionally push them away from available discounts. This is a direct violation of FINRA rule 2342 which prohibits a practice known as a ‘breakpoint’ sale.
What is an A2 share class?
Class A2 Shares means non-voting participating equity class A2 shares of par value of USD 1.00 each in the Company having the rights provided for in this Agreement.
Is breakpoint selling legal?
Who qualifies for rights of accumulation?
Rights of accumulation (ROA) are rights that allow a mutual fund shareholder to receive reduced sales commission charges when the amount of mutual funds purchased plus the amount already held equals a rights of accumulation (ROA) breakpoint.
What are breakpoints in investments?
A breakpoint is the dollar amount for the purchase of a load mutual fund’s shares that qualifies the investor for a reduced sales charge. 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.
What is STP in mutual funds?
A Systematic Transfer Planner (STP) allows an investor to transfer a fixed amount at periodical intervals from a liquid fund to an equity fund.
