A client owns Class C shares purchased 8 months ago. If the fund charges a 1% CDSC for redemptions within 12 months, and the shares have a current value of $25,000, what is the CDSC if the client redeems all shares?

Why C — $250

Class C shares typically carry a small CDSC (usually 1%) if redeemed within the first 12 months. Since the client purchased 8 months ago (within the CDSC period), the charge applies: $25,000 x 1% = $250. After 12 months, the CDSC expires and shares can be redeemed without a back-end charge, though Class C shares continue to carry higher 12b-1 fees.