ProductsCâu 12 / 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
Giải thích
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.
Luyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- 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:
- 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?
- Which statement most accurately describes Class B mutual fund shares?
- A fund's expense ratio represents:
- When a shareholder redeems open-end fund shares, the fund must transmit payment within:
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