Breakpoint Sale

Breakpoint Sale - This is the sale of mutual funds at a set dollar value allowing the holder of funds to move into a lower sales charge bracket. If, at the time of venture, an investor is unable to come up with the funds needed to qualify for the lower fee, a written letter of intent is to promise to reach the total amount, or breakpoint, in a set time period. Any sales that happen just below a breakpoint are considered unethical and in violation of rules. A breakpoint sale would be when a shareholder plans to invest in a front-load mutual fund.