What is the difference between Class C and Class A shares?
Furthermore, should I buy Class A or Class C shares?
This benefits the investor because Class A shares have lower annual expense ratios than Class B shares. Class C mutual fund shares are best for investors who have a short time horizon and plan on redeeming their shares soon. Investors cannot convert Class C shares to Class A shares, which have lower expense ratios.
Beside above, what are Class A mutual fund shares? Class A Share Funds Class A mutual fund shares generally have front-end sales charges (also known as a "load"). The load, which is a charge to pay for the services of an investment advisor or other financial professional, is often 5.00 and can be higher. The load is charged when shares are purchased.
Similarly, you may ask, what is the difference between share classes?
The difference between Class A shares and Class B shares is usually in the number of voting rights assigned to the shareholder. Class A shares are common stocks, as are the vast majority of shares issued. When more than one class of stock is offered, companies traditionally designate them as Class A and Class B.
Are C shares going away?
While the current conversions are only designed to limit how long an investor can be parked in a particular C-share class fund, the road ahead could get even rockier. “C shares are going away because they are a bad deal for investors.