SIE practice questionmediumMutual Funds - Sales Charges
A client wants to minimize upfront sales charges and is willing to pay higher ongoing expenses. Which mutual fund class is most appropriate?
- AClass C shares✓ Correct answer
- BClass A shares
- CClass B shares
- DNo-load shares
Explanation
Why A — Class C shares
Class C shares tend to have low or no front-end loads, with higher ongoing 12b-1 fees. Class A has higher front-end loads, B has back-end charges, and D may not have higher ongoing fees.
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