Mutual fund Class B shares—also known as back-loaded funds—are fund shares that have a sales charge, called a load, when you sell your holdings.
You may have heard that mutual fund Class B shares are a good buy — especially from transaction-oriented, commission-based advisors/brokers.
What are A share mutual funds?
Here are the basics on mutual fund share classes: Class A Share Mutual Funds: These funds charge what is called a “front load,” which means that you’ll pay a percentage of your purchase amount every time you buy shares.
What are B shares in a company?
What are Class B Shares. Class B shares are a classification of common stock that may be accompanied by more or fewer voting rights than Class A shares.
What is class A shares and class B?
Class A Shares vs. Class B Shares: An Overview
The difference between Class A shares and Class B shares of a company’s stock usually comes down to the number of voting rights assigned to the shareholder. Class A shareholders generally have more clout.
Is Class A or Class C shares better?
If You Buy Class C Shares:
They typically impose higher asset-based sales charges than Class A shares and, since they generally do not convert into Class A shares, those fees will not be reduced over time.