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See the answer below!
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Question (Relevant to the Series 6)
Monique wants to invest in mutual fund shares, but she only plans to keep the shares for just over a year. Which shares are most suitable for Monique?
A. A shares
B. B shares
C. C shares
D. There is not enough information to answer the question.
Answer: C. C shares have no front-end or back-end charges, so breakpoints don’t apply, and there is no need to hold shares for a minimum amount of time to save money. The only exception is a 1% back-end charge if the investor redeems the shares less than a year after purchasing them. However, C shares have the highest annual 12b-1 fees, so they are not suitable for long-term investments. For Monique, however, they would work perfectly.