Which statement regarding mutual funds is incorrect?

The statement that suggests investors have 1 year to fulfill their obligations under a Letter of Intent is inaccurate. In reality, a Letter of Intent (LOI) allows investors to indicate their intention to invest a specified amount in a mutual fund over a certain period, typically 13 months. This means that investors have just over a year, specifically a little over 12 months, rather than exactly 1 year to fulfill their investment commitment to benefit from the lower sales load associated with the LOI.

The concept of the LOI is designed to facilitate larger investments by allowing investors to gradually meet their specified commitment, with the ultimate goal of qualifying for reduced fees. Investors typically sign an LOI at the beginning of their investment, which can help them realize benefits like discounts on the sales charge based on their planned investment amount.

The other statements about mutual funds hold true. Load funds generally have both sales charges and ongoing expense ratios, ideally increasing transparency for investors. The net asset value (NAV) of mutual funds must be calculated at least once each business day to reflect the current market value of the fund's assets. Additionally, the fund being ready to issue and redeem shares is a fundamental characteristic of mutual funds, providing liquidity to investors who wish to enter or exit