Class C shares would work best for investors planning to keep the fund for a limited, intermediate period, optimally more than one year but less than three. That way, you hold on long enough to avoid the CDSC, but not so long that the high expense ratio will take a major toll on the fund’s overall return.
No Conversion: Unlike Class B shares, Class C shares cannot be converted into Class A shares. … If you have a long time horizon, Class C shares are not optimal for you as the higher management fees continue indefinitely.
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 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’s the difference between Class A and Class C stock?
Class C shares give stockholders an ownership stake in the company, just like Class A shares, but unlike common shares, they do not confer voting rights to shareholders. As a result, these shares tend to trade at a discount to Class A shares.
While the current conversions are only designed to limit how long an investor can be parked in a particular C-share class fund, the road ahead could get even rockier. … “C shares are going away because they are a bad deal for investors.
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 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.
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.