• Buying Class A Shares

  Class A shares typically charge a front-end sales charge. When investors buy Class A shares with a front-end sales charge, a portion of the dollars they pay is not invested. Class A shares may impose annual asset-based sales charges, but they are generally lower than the asset-based sales charges imposed by the other classes.

  A mutual fund may offer investors discounts, called breakpoints, on the front-end sales charge. Investors may qualify for a breakpoint discount in a number of ways, including:

  1. Single Purchase: Investors may be entitled to a breakpoint discount based on a single mutual fund transaction if the dollar size of the transaction exceeds one or more breakpoints.
  2. Letter of Intent: Investors may be able to count future purchases toward achieving a breakpoint discount if they write a letter of intent (LOI) stating that they intend to invest an amount over a breakpoint level within a given period of time specified by the fund. Many fund companies permit investors to include purchases completed within 90 days before the LOI is signed, and within 13 months after the LOI is signed in reaching the dollar amount of the breakpoint threshold.
  3. Rights of Accumulation: Investors may have rights of accumulation (ROA) that allow a breakpoint discount on their current mutual fund purchases by combining their current fund purchases with:
     • Previous purchases that they made in the same mutual fund;
     • Purchases of different funds from the same mutual fund family;
     • Purchases of funds from the same fund family made in different accounts, such as 401(k) plans, IRAs, college savings plans (529 plans) or accounts at other securities firms or directly with the fund family;
     • Purchases of funds from the same fund family made by related parties as defined by the fund, usually including close family members, such as spouses or children.

  Each mutual fund family sets its own breakpoint discounts and sets the rules regarding which accounts can be counted towards eligibility for a breakpoint discount. Investors can get information about the breakpoint discounts offered by a mutual fund by reviewing the fund's prospectus.