Frequent question: Should I buy A shares or C shares?

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 loaded mutual funds worth it?

The load itself really isn’t bad, but paying the load is bad. Mutual fund companies make money from ongoing management expenses, whether it’s a no-load or load fund. While some things are worth paying more for, loads are completely unnecessary when it comes to buying a mutual fund.

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.

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Are Class A shares better?

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.

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.

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 is an disadvantage of buying a load fund?

The main disadvantage of a load fund is the attached charges and commissions. These charges can be substantial, depending on the size and type of investment, and other factors. The costs diminish your investing power as they are deducted from your investment funds.

What is best for most investors load or no-load funds Why?

You should generally buy no-load funds if you don’t use an advisor, but perhaps the most important reason for buying no-loads is to boost your returns by minimizing expenses. In most cases, no-load funds have lower average expense ratios than load funds, and lower expenses generally translate into higher returns.

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