Rights of Accumulation (ROA)
Chapters in this video
- 0:00 The absurd coffee shop analogy that explains ROA
- 1:23 Ivy, Riley, and the $40,000 plus $15,000 breakpoint example
- 2:22 The current NAV trap: original purchase price is the bait
- 3:57 Active recall check: same brokerage, same family?
- 4:12 Fund family defined by sponsor, not brokerage shelf
- 5:35 Whose accounts qualify: immediate family blending rules
- 6:05 No retroactive refunds: new purchases only
- 6:51 Rapid-fire exam recap
What this video covers
- How rights of accumulation (ROA) combine existing holdings at current net asset value (NAV) with a new purchase to qualify for breakpoint discounts
- Why the current market value of existing shares matters, not the original purchase price, and how the exam baits you with both numbers
- What defines a fund family (same sponsor, same investment adviser, same servicing agent), and why brokerage account location is irrelevant
- Whether two funds in the same brokerage account but different sponsors can combine for ROA purposes
- Whose accounts can be linked for ROA (individual, joint, and custodial accounts of immediate family members)
- Why ROA only reduces sales charges on new purchases, with no retroactive refunds on prior investments
- How ROA interacts with letters of intent and breakpoint schedules in the broader mutual fund sales charge framework
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete SIE course in the app is free too, including adaptive practice questions and spaced-repetition flashcards.