The number of fund management fee breakpoints - the level of assets at which fees are reduced - increase as funds' total assets increase, according to a study released by Lipper of Summit, N.J. The study, Mutual Fund Management Fees-2000, a report on management fee structures, is the first of its kind, according to Lipper.

"The most important conclusion of the study is that business certainly supports the notion that economies of scale exist within the fund industry and that it's appropriate for mutual fund companies to pass those opportunities to shareholders," said Jeff Keil, vice president of portfolio evaluation, performance and board reporting for Lipper and one of the authors of the study.

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