Question

A customer with no other mutual fund investments wishes to invest $47,000 in the XYZ Technology Fund. If the Class A shares are eligible for a breakpoint sales charge discount at the $50,000 investment level, the action least appropriate for an agent is to:A) inform the customer that he can reduce his sales charge through a letter of intent.
B) inform the customer that he can reduce his sales charge by investing an additional $3,000.
C) inform the customer that he can reduce his sales charge by combining purchases in other funds offered by XYZ group.
D) place the order as instructed.

Answer 1

Answer:

The correct answer is (D)

Explanation:

If a customer wants to invest the agent must place the order as instructed. The agent must give all the information to the customers regarding the break-even discount.  The complete information should include the ways through which the customer can earn the break-even discount. The agent should place the order and tell every opening and aspect of invest to the customer.