SIE practice questionmediumMutual Fund Share Classes
Class C mutual fund shares are typically most appropriate for:
- AInvestors with a short to intermediate investment horizon✓ Correct answer
- BInvestors seeking to minimize ongoing expenses for the long-term
- CInvestors who want to avoid all sales charges
- DInstitutional investors only
Explanation
Why A — Investors with a short to intermediate investment horizon
A is correct; Class C shares are suited for shorter holding periods due to level loads. B is incorrect—Class A is more cost-effective long-term. C is false—C shares have 12b-1 fees. D is not a restriction.
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