Today’s tip will cover “What are A, B & C Share mutual funds?”

Mutual Funds invest in a diversified portfolio such as stocks, bonds, real estate or commodities.

Some funds issue different types of shares of mutual funds. The principal difference between the classes is that the mutual fund will charge you different fees and expense depending on the class you chose. Some of the more common mutual fund share classes are A, B & C.

Let’s start with Class A share mutual funds, these funds charge a font load which mean that you will pay a percentage of your purchase amount every time you buy shares.

There are Class B Share Mutual Funds, these funds charge a back load also known as a contingent deferred sales charge (CDSC) which means you will pay a percentage of the dollar value of the shares sold. The back-load declines over time while you hold the fund and eventually goes down to zero.

Then there are Class C Share Mutual Funds, these funds charge what is called a level load. What this means is that there is an ongoing fee, usually 1% as long as your hold the fund.

I would you suggest you speak to a financial planner to determine what is best for your overall goals and objectives.

Catherine Magaña is a CFP® or CERTIFIED FINANCIAL PLANNER™ in Carlsbad California.

If you would like to set up a free 30 minute financial assessment she can be reached at 760-692-5700, info@savvyup.com for private message or click on the following link to contact us directly https://savvyup.com/contact .

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