Is there a sales charge on C shares?

Class C shares do not impose a front-end sales charge on the purchase, so the full dollar amount that you pay is invested. Often Class C shares impose a small charge (often 1 percent) if you sell your shares within a short time, usually one year.

How long do you have to hold C shares before selling?

Class C shares are level-load shares that don’t impose a sales charge unless you sell too soon after your purchase (usually a period of a year). Instead, mutual funds charge an ongoing annual fee. C shares are probably best for short term investors of beyond one year and no more than three years.

Is it better to buy A shares or C shares?

Investors generally should consider Class A shares (the initial sales charge alternative) if they expect to hold the investment over the long term. Class C shares (the level sales charge alternative) should generally be considered for shorter-term holding periods.

What is the difference between a share and C share?

The primary difference between classes A and C is that class A funds impose fees when you invest in the fund (expressed as a percentage of the investment), while the fees for class C funds are paid to the fund through its annual fees.

Can you exchange C shares for A shares?

Can I exchange shares across share classes? Exchanges are generally only allowed within the same share class. However, you can exchange Class A shares in American Funds U.S. Government Money Market Fund℠ to Class C shares of most other funds.

Are C shares purchased at NAV?

C-Class shares are not subject to a sales charge at the time of purchase. An order for C-Class shares will be priced at the next NAV calculated after the order is received in good order and accepted by the fund or an authorized financial intermediary.

Can you exchange C shares to A shares?

Class C and 529-C shares Class C shares convert to Class A shares in the month of the 8-year anniversary. 529-C shares convert to 529-A share in the month of the 5-year anniversary. This change ultimately benefits 529-C shareholders as they will incur lower 12b-1 expenses after conversion.

What does class C shares mean?

Class C shares are a class of mutual fund share characterized by a level load that includes annual charges for fund marketing, distribution, and servicing, set at a fixed percentage. These fees amount to a commission for the firm or individual helping the investor decide on which fund to own.

Do C shares convert to A shares?

Cons. No Conversion: Unlike Class B shares, Class C shares cannot be converted into Class A shares. 5 That removes the opportunity for lower expense ratios. If you have a long time horizon, Class C shares are not for you as the higher management fees continue indefinitely.

What does C mean in stocks?

1. A symbol appearing next to a stock listed on NASDAQ indicating that the stock is temporarily exempt from listing requirement. All NASDAQ listings use a four-letter abbreviation; if a “C” follows the abbreviation, it indicates that the security being traded is currently exempt.

What is a Class S share?

S shares are former no-load share classes that have been closed to new investors. If an investor would like to buy into one of those funds for the first time, they will have to go through a broker and opt for the A, B, or C share class.

How do C shares pay advisors?

In most instances, the broker or advisor who places you in C shares will receive a trailing commission of about 1% for as long as you stay in the fund!