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  2. Class K funds, sometimes called "institutional" funds, offer expense savings to institutional investors and qualified capital pools, like pensions and tax-deferred plans. Many large mutual fund families offer Class K mutual funds. Mutual Fund Expenses.

    • What Are Mutual Fund Classes?
    • Class A Shares
    • Class B Shares
    • Class C Shares
    • The Disappearing Middle Class
    • Applying The Pros and Cons
    • The Bottom Line

    While stock classes indicate the number of voting rights per share, mutual fund classes indicate the type and number of fees charged for the shares in a fund. Mutual fund companies can have seven or more classes of shares for a particular fund; however, there are three main types of mutual fund classes: A, B, and C. They are also known as A-shares,...

    A-shares charge an upfront sales fee, or front-end load, that is deducted from your initial investment.

    B-shareshave a back-end or contingent deferred sales charge. This fee is paid when you sell shares a specified period of years after the original purchase. These shares are typically good for investors with limited cash to invest and a long investment horizon.

    Class C sharesare a type of level-load fund, which charges an annual fee. This class works well for individuals who could be redeeming their shares in the short term.

    Although we've looked at all three classes, the middle class of mutual funds—the B-shares—have been disappearing from the mutual fund industry. There are several reasons for this, but chief among them was more regulatory focus on fees. 12b-1 fees have been a source of shareholder lawsuits against fund companies for alleged misuse. As a result, many...

    Let's look at how the characteristics and pros and cons described above work in the following share classes of the hypothetical ABC Company Bond Fund. ABC Company Bond Fund, A Versus C Comparison Source: Hypothetical bond fund, based on a model from PIMCO In this example, you can see how these two share classes are better for different types of inv...

    When deciding which class of mutual fund shares to choose, remember to read the prospectus. In addition, you must take into account your investment horizon and the amount you have available to invest. The frequency of your investments and the probability that you will need to withdraw funds early are also essential considerations. Correction—Jan. 1...

  3. Dec 30, 2023 · To help you figure out which share class of any given mutual fund is right for you, we’ll break down common share classes and offer some guidelines to keep in mind as you shop for funds.

  4. Here are some key characteristics of the most common mutual fund share classes offered to individual investors: Class A shares typically charge a front-end sales load, but they tend to have a lower 12b-1 fee and lower annual expenses than other mutual fund share classes.

  5. May 31, 2013 · Class A Share Funds. Class B Share Funds. Class C Share Funds. Class D Share Funds. Class ADV Share Funds. Find out which mutual fund share class type is best for you. Photo: Adam Gault/Getty Images. What are the different types of mutual fund share classes, and what are their basic advantages or disadvantages? Which shares are best?

    • Kent Thune
  6. Jun 26, 2020 · What Do the Mutual Fund Classes Mean? Understand how the same fund can differ, with Morningstar's Director of Investment Research, Ian Tam Ian Tam, CFA 26 June, 2020 | 1:18AM

  7. May 26, 2017 · When it comes to selecting mutual funds for a defined contribution (DC) plan’s investment menu, plan sponsors can encounter an alphabet soup of different share classes with varying fee structures sprinkled in—and that’s ultimately what sets them apart.

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