SIE practice questionhardMutual Funds
When purchasing mutual fund Class C shares, what is the typical cost structure?
- ANo fees of any kind
- BHigh front-end sales load
- CLong-term back-end load that never decreases
- DNo front-end load, but higher ongoing 12b-1 fees✓ Correct answer
Explanation
Why D — No front-end load, but higher ongoing 12b-1 fees
Class C shares have no front-end load but charge higher 12b-1 fees. They may have short-term redemption fees but not high up-front or permanent back-end charges.
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