Breakpoint

Breakpoint
A predetermined contribution amount in a mutual fund making the investor eligible for a reduction in sales charges. Mutual Funds are required to give a description of these breakpoints and the eligibility requirements in their fund prospectus. It is prudent for investors to be aware of these.
An example of breakpoints on a front-load mutual fund would be a charge of 6.25% on investments of less than $25,000, a charge of 5.5% on sales of $25,000 to $99,999 and 4.75% on investments above $100,000. By reaching or surpassing a breakpoint, an investor will face a lower sales charge and save money.
Mutual Fund Breakpoints: A Break Worth Taking - Be sure to take advantage of discounts of front-end sales loads that may come available at different investment levels. Mutual Fund Basics Tutorial - Learn about the basics--and the pitfalls!--of investing in mutual funds.