ProductsPregunta 11 de 110
A 45-year-old investor has $250,000 to invest for retirement in about 20 years and expects to add money over time. Which share class is generally most appropriate?
a.Class B shares, because the contingent deferred sales charge disappears over time
b.Class A shares, because the large purchase qualifies for breakpoints and the ongoing expenses are lowest
c.Class C shares, because the level load spreads the cost evenly across the holding period
d.Any class, because total costs are identical over a 20-year period
Explicación
A large, long-horizon investment favors Class A shares: the front-end charge is heavily discounted by breakpoints and the low ongoing 12b-1 fee compounds into a smaller drag over two decades. Class B shares typically are not even offered at this size and carry higher ongoing fees during the CDSC period. Class C shares charge a higher level fee every year, which over 20 years costs far more than a discounted front-end load.
Practica las 110 preguntas gratis — sin registro.
Preguntas relacionadas de este tema
- Rights of accumulation differ from a letter of intent in that rights of accumulation:
- A 12b-1 fee charged by a mutual fund is used primarily to pay for:
- A fund may describe itself as "no-load" only if its annual 12b-1 charges do not exceed:
- An investor plans to place $15,000 in a fund but expects to need the money in about two to three years. Which share class is generally most suitable?
- Which statement most accurately describes Class B mutual fund shares?
- A fund's expense ratio represents:
Última revisión: · proceso editorial
Equipo Editorial de PrepPass · Verificado con FINRA Series 6 — Investment Company & Variable Contracts Rep · Cómo revisamos