Automatic Execution

what is the right of accumulation? All right well it's

basically the right to count cumulative mutual fund purchases toward discounted

volume price breaks as they relate to Commission's that is you get to

accumulate or you have the right to accumulate your volume discount over time [counting money out on table]

like you don't need to put in the order for a ton of mutual fund shares upfront

they credit you over time so remember that whole mutual fund breakpoint thing

like from $250 to 2500 the Commission on the best things in life our fees fund

yeah that's 5% then on 2,500 to 10,000 the Commission is 3% and then like from

10 to a hundred grand it's like 1% blah blah blah blah blah something like that

break points in fees ie you get a break at twenty five hundred and ten grand and

a hundred grand right there's a break there so if you invested five grand and

got the three percent retroactive Commission rate if you had the right of

accumulation well then you can invest say another twenty five hundred a year

for two years for a total of another five grand and then receive retro

actively essentially a credit if that's how this funds indentures described it

it's essentially a reduction in your commission from that 5% to 3% yeah that

works very clever why would mutual funds do

this well remember that mutual funds charge investors a percentage of assets [investor looking at a pyramid of money]

the assets they manage year after year after year well the Commission upfront

is kind of small as a number when compared with total revenues to the

mutual fund over decades of happy clients continuing to hold that fund and

pay the annual fee so pretty much anything a fun can do to bring a client

in the door and then have them hold on to the money for long periods of time is

smart business for that fun so giving an investor the right to acumulate volume [counting money on table]

and then give that customer volume and price breaks along the way well it makes

a lot of sense financially the real dough is made by the management company [investor looking at pyramid of money]

collecting its annual management fee year after year after year

yeah that is one happy piggy [money going into expanding piggy bank]