How is the sales charge affected if an investor signs a letter of intent before making additional purchases?

When an investor signs a letter of intent (LOI) before making additional purchases, the sales charge is affected in a beneficial way for the investor. The LOI allows the investor to commit to a specific investment amount over a designated period, usually 13 months. By doing so, the investor can take advantage of a lower sales charge that corresponds to the total amount they plan to invest.

This means that if additional purchases are made under the terms of the LOI, those purchases will qualify for the lower sales charge rate. The benefits of the LOI offer a way to reduce the cost of investing overall because it allows the investor to access discounts that apply to larger investment amounts. Thus, signing an LOI effectively allows the investor to pay a lower sales charge applied to all purchases made under the letter's provisions.