Types of Mutual Fund Shares
Mutual funds tend to come in two categories based on whether or not an investor must pay a sales charge. Load funds charge a sales commission; no-load funds do not. There are three types of load fund shares, which are characterized by their sales charges. Each of these types is suitable for different customers depending on the size of their investment and how long they intend to hold the shares.
- • A-shares are sold at a public offering price, NAV + front-end sales charge. The sales charge can be reduced through breakpoints. They may include a 12b-1 fee, but it is usually lower than for B- or C-shares. A-shares are most appropriate for larger accounts