Asked by Chloe Cluchey on Jun 10, 2024
Verified
If a mutual fund has multiple-class shares, which class typically has a front-end load?
A) Class A
B) Class B
C) Class C
D) Class I
Multiple-class Shares
Stocks issued by a single company that have different rights, dividends, or voting powers, typically designated as Class A, Class B, etc.
Front-end Load
A commission or sales charge applied at the time of the initial purchase of an investment.
- Comprehend the associated costs and fees of mutual funds, like load fees, 12b-1 fees, and expense ratios.
Verified Answer
AG
Amteg GondaraJun 12, 2024
Final Answer :
A
Explanation :
Class A shares typically have a front-end load, which is a fee an investor pays at the time of purchase. Class B shares often have a back-end load or redemption fee, and Class C shares may have a level-load or ongoing fee. Class I shares are typically institutional shares that do not have any load or ongoing fees.
Learning Objectives
- Comprehend the associated costs and fees of mutual funds, like load fees, 12b-1 fees, and expense ratios.