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
For a large long-term mutual fund investment where breakpoints are available, Class A shares are typically favored because the front-end load can be reduced and ongoing expenses are usually lower than Class B or C shares.
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