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- The main reason mutual fund companies create share classes is to pay the assorted middlemen that sell their funds, such as financial advisers, insurance companies, brokerage platforms and 401 (k) plans, among others, says Eric Jacobson, a director of the research firm Morningstar.
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Sep 1, 2023 · 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.
Dec 30, 2023 · Why there are different share classes. The main reason mutual fund companies create share classes is to pay the assorted middlemen that sell their funds, such as financial...
Jun 15, 2020 · Why do Funds Have Different Share Classes? Historically, different share classes for funds were launched to hold money from different investors: retail investors, professionals and...
- Annalisa Esposito
4 days ago · Today, some mutual funds can have more than 10 different share classes for the same fund. The reason for the difference and multitude of share classes stems from a variety of regulatory actions by the Security and Exchange Commission ( SEC ), with rules 12b-1 and 18f-3 being some of the most important.
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.
Jul 21, 2015 · According to American Funds spokesman Tom Joyce, the firm offers so many different share classes because different structures suit different investor needs, such as how much one is investing,...
