How long is a Letter of Intent (LOI) typically valid?

A Letter of Intent (LOI) is generally valid for a period of 13 months when it pertains to investment purposes in mutual funds. This timeframe allows investors to schedule the amount they intend to invest over time, typically in a dollar cost averaging strategy to take advantage of market fluctuations. The 13-month validity also aligns with regulatory practices that provide enough time for investors to follow through on their commitments without needing to repeatedly initiate new letters for the same investment goal.

Understanding the specifics around LOIs is essential for anyone in the securities field, as it impacts investment strategies and compliance requirements. Moreover, while other durations may exist in different contexts or industries, the standardized 13-month period is crucial in the mutual fund investment landscape.