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Deciphering the Different Classes of Mutual Funds Investing in mutual funds also includes the fact that you have to pay your broker a lot of fees. Some mutual fund brokers will make it seem to you that the higher fee you pay, the higher return you will achieve on your investment. This is NOT true. All the broker will be doing (if you pay a higher fee) is take greater risks with your money, which could have devastating consequences. In order to avoid paying high fees to your broker and to maximize your ROI (return on investment), you should consider the different classes of mutual funds to purchase and which class is the right one for you. Mutual Fund Classes? Just as stock classes indicate voting rights between common & preferred shares, mutual fund classes show the type of mutual fund being purchased, and the fees involved. There are 3 main types of mutual funds: Class A shares, Class B shares & Class C shares. We will look at each of these mutual fund classes in depth below:
Advantages of Class A shares
Disadvantages of Class A shares
Advantages of Class B shares
Disadvantages of Class B shares
Advantages of Class C shares
Disadvantages of Class C Shares
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