SIE practice questionmediumMutual Fund Share Classes
A client wants to minimize ongoing expenses and is planning a large investment in a mutual fund to use the available breakpoint. Which share class is typically most appropriate?
- ANo-load shares
- BClass B shares
- CClass C shares
- DClass A shares✓ Correct answer
Explanation
Why D — Class A shares
A is correct; Class A shares have lower ongoing expenses and sales charges are reduced by breakpoints. B and C often have higher expenses, and D is only possible if a no-load version is available but is not related to breakpoints.
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