Frequent question: Are A shares better than C shares?

Is Class A or Class C shares better?

Class A and B shares are aimed at long-term investors, whereas Class C shares are for beginning investors who aim for short-term gains and may have less money to invest. Class C shares, especially those with no load, are the least expensive to purchase, but they will incur higher fees in the long term.

What is the difference between A shares and C shares?

The primary difference between classes A and C is that class A funds impose fees when you invest in the fund (expressed as a percentage of the investment), while the fees for class C funds are paid to the fund through its annual fees.

Do C shares become A shares?

Class C Shares

Unlike B shares, they typically do not convert to class A shares and, instead, continue to charge higher annual expenses (including 12b-1 fees) for as long as the shares are held.

Are C shares good?

Class C shares are advantageous because they let an investor spread out his commission payments and allow the entire investment amount to be invested, which could result in higher returns.

Are Class A shares worth it?

KEY TAKEAWAYS. Class A shares charge upfront fees and have lower expense ratios, so they are better for long-term investors. Class A shares also reduce upfront fees for larger investments, so they are a better choice for wealthy investors.

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What does C Stock mean?

C-STOCK: This is liquidation/clearance inventory, source from the manufacturer or distributor, that have blemishes (aka, scratch & dent models). These may be factory seconds, units damaged in shipping, or dealer/consumer returns with finish/operation problems.

Are C shares no load funds?

Unlike A-shares, class C shares do not have front-end loads, but they often carry small back-end loads, officially known as a contingent deferred sales charge (CDSC), just as class B shares carry.

What is the highest returning mutual fund?

Best-performing U.S. equity mutual funds

Fund Symbol 3-year return
Fidelity Series Growth Company FCGSX 31.19%
Fidelity Series Blue Chip Growth FSBDX 30.45%
American Century Focused Dynamic Gr Inv ACFOX 30.08%
Fidelity Growth Company K FGCKX 29.95%

What are CDSC fees?

A contingent deferred sales charge (CDSC) is a fee, sales charge or load, which mutual fund investors pay when selling Class-B fund shares within a specified number of years from the original purchase date. … The financial industry usually expresses a CDSC as a percentage of the dollar amount invested into a mutual fund.

How long does it take for C shares to convert to A shares?

To keep long-term investors from paying higher fees over time, Class C shares, including shares acquired by dividends, convert to Class A shares after an investor has owned them for 8 years.

Do C shares count towards breakpoints?

The only investors who are eligible for breakpoint discounts are those who purchased Class A shares of mutual funds that charge this “load.” No-load mutual funds and other mutual fund share classes, such as Class B and C shares, don’t offer breakpoint discounts because they do not charge front-end sales loads.

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What is Class A and Class C stock?

Class-A shares are held by regular investors and carry one vote per share. Class-B shares, held primarily by Brin and Page, have 10 votes per share. Class-C shares are typically held by employees and have no voting rights.