ProductsQuestion 13 of 110
Which statement most accurately describes Class B mutual fund shares?
a.They carry a front-end sales charge and the lowest annual expenses of any class
b.They may be redeemed at any time with no sales charge of any kind
c.They pay no 12b-1 fee because the sales charge is deferred
d.They carry a contingent deferred sales charge that declines each year and typically convert to Class A shares after a set period
Explanation
Class B shares are sold without a front-end load but impose a back-end charge that steps down annually and eventually disappears, after which the shares usually convert to the lower-expense Class A shares. During the deferred-charge period Class B shares carry higher 12b-1 fees, not none. Redeeming early does trigger the CDSC.
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