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.
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.
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.
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.
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.
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.
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
|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.
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.
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.
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.