Question: Do C shares have 12b1 fees?

What does class C shares mean?

Class C shares are a type of mutual fund shares. … This means the total amount of money the investor pays to the mutual fund is invested in shares. Instead of paying a percentage of the initial investment as a commission, the investor pays the mutual fund commissions via annual fees.

What is a 12b1 fee?

So-called “12b-1 fees” are fees paid out of mutual fund or ETF assets to cover the costs of distribution – marketing and selling mutual fund shares – and sometimes to cover the costs of providing shareholder services. 12b-1 fees get their name from the SEC rule that authorizes a fund to charge them.

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 A shares have 12b-1 fees?

Class A shares, which usually charge a front-end load but no back-end load, may come with a reduced 12b-1 expense but normally don‘t come with the maximum 1% fee. Class B shares, which typically carry no front-end but charge a back-end load that decreases as time passes, often come with a 12b-1 fee.

THIS IS INTERESTING:  How do you find Earnings per share without preferred dividends?

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.

What is the difference between Google Class A and Class C?

GOOGL shares are its Class A shares, also known as common stock, which have the typical one-share-one-vote structure. GOOG shares are Class C shares, meaning that these shareholders have no voting rights. There is a third type of share, Class B, which are held by founders and insiders that grant 10 votes per share.

How is 12b1 fee calculated?

To perform a simple calculation to discover how much you are paying toward 12-B1 fees, multiply your initial investment by the amount of the 12B-1 fees. For example, assume the mutual funds fees are a front-end sales load of 5.75 percent, and 12B-1 fees of . 23 percent.

What is Rule 12b1?

In 1980, the Securities and Exchange Commission (SEC) adopted Rule 12b-1 under the Investment Company Act of 1940. This rule permits funds to compensate brokers and other financial intermediaries out of fund assets for services they provide shareholders related to the distribution of fund shares.

Who pays 12b-1 fees?

12b-1 fees are paid to the salespeople who distribute mutual funds and are paid from the fund’s assets.

Do C shares convert to 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.

THIS IS INTERESTING:  Why do some investors prefer low dividend paying stocks?

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.

Do Class C shares have voting rights?

Nonvoting shares

Some companies create a separate class of stock, Class C stock, that comes without voting rights and that may be less expensive than other classes.