Which of the following will reduce sales charges?

Rights of accumulation is the correct choice for reducing sales charges because it allows investors to combine their purchases of mutual fund shares for the purpose of qualifying for reduced sales charges. This means that as a client invests more in the same fund or across related funds, the total amount invested can reach a threshold that lowers the sales charges on future investments. This mechanism provides an incentive for investors to consolidate their investments, ultimately resulting in cost savings.

In contrast, contingent deferred sales charges, commonly found in certain classes of shares, involve a fee that is charged when shares are sold before a specific period has elapsed, but it does not inherently reduce the charges on transactions. Class B shares typically have higher initial charges compared to Class A and are structured to convert to Class A shares over time, which potentially involves higher costs initially. Initial public offerings (IPOs) pertain to the first sale of shares to the public and do not influence or reduce the sales charges associated with mutual fund investments.