Definition - What does LOI mean?

A letter signed by the purchaser of mutual fund shares that states the investor’s intention to invest a certain amount of money over a 13-month period. By agreeing to invest this sum, the investor in entitled to receive a lower sales charge on all purchases covered by the letter of intent. The letter of intent may be backdated up to 90 days from an initial purchase. Should the investor fail to invest the stated sum, they will be charged a sales charge adjustment.

Testopedia explains LOI

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