SIE practice questionhardMutual Funds - Share Classes
A key disadvantage of Class B mutual fund shares compared to Class A shares is:
- AHigher minimum initial investment
- BImmediate front-end load payments
- CNo eligibility for breakpoints
- DInvestors may pay higher overall fees if holding long-term✓ Correct answer
Explanation
Why D — Investors may pay higher overall fees if holding long-term
While Class B shares avoid front-end loads, their deferred sales charge and higher expenses can result in higher long-term costs. B and D are incorrect; C is also true but not as directly related to long-term costs.
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