right of accumulation

right of accumulation definition - business

right of accumulation

The right that is granted to buyers by some mutual funds permitting the buyers to count existing holdings of the fund along with new purchases when determining the size of the sales fee on the new shares. This right applies to funds that charge fees on a sliding scale, whereby the more shares that are purchased, the lower the fee that is charged on a percentage basis. Thus the fee charged on succeeding purchases is determined by all purchases, past and present, not just by new purchases.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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