Question

Another name for a mutual fund that doesn't charge a sales load or a contingent deferred sales fee, but does charge an ongoing higher 12b-1 fee is a class ____________ fund.

Answer 1

Answer:

Class B fund

Explanation:

Class B mutual funds do not charge a front-end sales fee, but they do impose a higher 12b-1 fee. In the short term, the purchase of Class B shares involves paying higher fees than Class A shares. However, in the long term, the investment might be lower on Class B than paying an upfront sales load for Class A.