SIE practice questioneasyOpen-end Mutual Funds - Sales Charges
Which type of fund typically charges a sales load at the time of purchase?
- AClass A mutual fund shares✓ Correct answer
- BClosed-end funds
- CExchange-traded funds (ETFs)
- DUnit Investment Trusts (UITs)
Explanation
Why A — Class A mutual fund shares
Class A mutual fund shares often include a front-end sales load at purchase. Closed-end funds and ETFs trade at market price and usually have commissions, not loads; UITs occasionally have creation fees but not loads like mutual funds.
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