alleryStart learning →What does it mean when a management fee has 'breakpoints'?
AThe fee is waived on market holidays
BThe fee rises with every redemption
CThe fee is levied only at the exit
DThe fee rate falls as the invested sum grows
Answer & Solution
Correct answer: D. The fee rate falls as the invested sum grows
Breakpoints reduce the fee percentage as the amount invested in the fund or fund family increases.
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