SIE practice questionhardMutual Fund Account Charges
A customer purchases Class B shares in a mutual fund account. Which fee is MOST likely applied?
- AA redemption fee on all mutual funds
- BA front-end sales load
- CA contingent deferred sales charge (CDSC)✓ Correct answer
- DNo possible sales charges
Explanation
Why C — A contingent deferred sales charge (CDSC)
Class B shares typically have CDSCs (back-end loads). Front-end loads are for Class A shares. Not all funds have redemption fees, and D is false.
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