#c share

What Is a Class C Share? | C Share Mutual Funds

Class C shares are a classification of mutual fund share characterized by way of a degree load that consists of annual fees for fund marketing, distribution, and servicing, set at a constant percentage. These expenses quantity to a fee for the association or man or woman supporting the investor figure out on which fund to own. The costs are charged annually. In comparison, a front-end load includes expenses paid when the shares are offered and a back-end load assesses costs when the investor sells shares; and no-load cash includes no fee prices at all, with the costs truly calculated into the internet asset cost (NAV) of the fund.

KEY TAKEAWAYS

Class-C mutual fund shares charge a level sales load set as a fixed percentage assessed each year.

This can be contrasted with front-load shares that charge investors at the time of purchase and back-end loads that charge at the time of sale.

Because the annual fee can compound investor costs over time, this class of fund is best suited for those looking to hold fund shares for periods of 3 years or less.

As an investment adviser, I am privy to how people are actually investing their money.  It amazes the fees that the industry is still charging.  This isn’t 1985 when equities were averaging 10% and bonds were yielding 9%.  The S&P has averaged a little over 5%, with dividends reinvested, for 18 years.  BBB rated corporate bonds yield no more than 4%.