20 April 2022 22:02

What are the different classes of mutual funds?

Mutual fund companies can have seven or more classes of shares for a particular fund. However, there are three main types of mutual fund classes: A, B, and C. 2 They are also known as A-shares, B-shares, and C-shares. Each of these classes has various benefits and drawbacks.

What are the 4 classes of mutual funds?

There are four broad types of mutual funds: Equity (stocks), fixed-income (bonds), money market funds (short-term debt), or both stocks and bonds (balanced or hybrid funds).

What do classes mean in mutual funds?

What Are Mutual Fund Share Classes? A single mutual fund, with one investment portfolio and one investment adviser, may offer more than one “class” of its shares to investors. Each class represents a similar interest in the mutual fund’s portfolio.

What are the 6 types of mutual funds?

There are six common types of mutual funds:

  • Money Market Funds. Money market funds invest in short-term fixed-income securities. …
  • Fixed Income Funds. Fixed income funds buy investments that pay a fixed rate of return. …
  • Equity Funds. Equity funds invest in stocks. …
  • Balanced Funds. …
  • Index Funds. …
  • Specialty Funds.

What does a Class C fund mean?

Class C shares are a class of mutual fund share characterized by a level load that includes annual charges for fund marketing, distribution, and servicing, set at a fixed percentage. These fees amount to a commission for the firm or individual helping the investor decide on which fund to own.

What is the difference between Class A and Class B funds?

Classes of Mutual Fund Shares

Compared to Class C shares, a smaller amount of money is invested in Class A shares, since a percentage of that investment is taken as commissions. Class B shares charge a back-end load. The initial investment buys the mutual fund shares without incurring a commission.

What is the difference between Class A and Class C mutual funds?

The primary difference between classes A and C is that class A funds impose fees when you invest in the fund (expressed as a percentage of the investment), while the fees for class C funds are paid to the fund through its annual fees.

Should I buy Class A or Class B shares?

The real benefit for retail investors in choosing Class A shares over Class B comes down to cost and attainable benefits. If Class A shares aren’t exorbitantly expensive and the benefits go beyond voting—such as access to special dividends—it might be worth it.

Is Class A or Class C stock better?

Class A and B shares are aimed at long-term investors, whereas Class C shares are for beginning investors who aim for short-term gains and may have less money to invest. Class C shares, especially those with no load, are the least expensive to purchase, but they will incur higher fees in the long term.

What does class A and B mean in stocks?

When more than one class of stock is offered, companies traditionally designate them as Class A and Class B, with Class A carrying more voting rights than Class B shares. Class A shares may offer 10 voting rights per stock held, while class B shares offer only one.

What is difference between GOOG and GOOGL?

GOOG and GOOGL are stock ticker symbols for Alphabet (the company formerly known as Google). The main difference between the GOOG and GOOGL stock ticker symbols is that GOOG shares have no voting rights while GOOGL shares do.