ProductsPregunta 12 de 110
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?
a.Class A shares, because the front-end load is smallest over short periods
b.Class B shares, because the deferred charge is waived after one year
c.No mutual fund is suitable for any holding period shorter than five years
d.Class C shares, because there is little or no front-end charge and only a short contingent deferred charge
Explicación
Class C shares impose a level annual asset-based fee with at most a small CDSC that usually lapses after 12 months, which keeps costs low over a short holding period. A front-end load on Class A shares is paid up front and cannot be recovered in two or three years at this dollar amount. Class B deferred charges typically run several years, and it is not accurate to say no fund fits a short horizon.
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