UITs are investment companies that offer redeemable shares, or units, of a generally fixed portfolio of securities in a one-time public offering, and terminate on a specified date. Like mutual funds, some UITs that charge initial sales charges offer discounts in the sales charge based on the dollar amount or number of units of the investment, although in the context of UITs such discounts generally are called price breaks rather than breakpoints.
For example, a UIT may charge an initial sales charge of 1.00 percent for purchases of less than 50,000 units; reduce the charge to .75 percent for purchases of between 50,000 and 100,000 units; reduce it again to. 25 percent for purchases of between 100,000 and 250,000 units; and eliminate it entirely for purchases of more than 250,000 units. As in the case of mutual fund shares, investors may be eligible for discounts based on a single transaction. There may also be limited rights of accumulation, depending on the terms and conditions set forth in the prospectus.