What is the difference between C shares and A shares?

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.

Do A shares convert to C shares?

Class C Shares Unlike B shares, they typically do not convert to class A shares and, instead, continue to charge higher annual expenses (including 12b-1 fees) for as long as the shares are held.

Why do C shares convert to A shares?

Why do Class C shares convert to A shares? Class A shares have lower annual expenses than Class C shares. To keep long-term investors from paying higher fees over time, Class C shares, including shares acquired by dividends, convert to Class A shares after an investor has owned them for 8 years.

What does class C shares mean?

Class C shares are a type of mutual fund shares. This means the total amount of money the investor pays to the mutual fund is invested in shares. Instead of paying a percentage of the initial investment as a commission, the investor pays the mutual fund commissions via annual fees.

Is it better to sell A shares or C shares?

Class A shares charge a front-end load. Class C shares are advantageous because they let an investor spread out his commission payments and allow the entire investment amount to be invested, which could result in higher returns.

Do C shares count towards breakpoints?

The only investors who are eligible for breakpoint discounts are those who purchased Class A shares of mutual funds that charge this “load.” No-load mutual funds and other mutual fund share classes, such as Class B and C shares, don’t offer breakpoint discounts because they do not charge front-end sales loads.

What is a Class C shareholder?

Class-C shares are typically held by employees and have no voting rights. The structure gives most voting control to the founders, although similar setups have proven unpopular with average shareholders in the past.

What are AB and C shares?

Class-A shares are held by regular investors and carry one vote per share. Class-B shares, held primarily by Brin and Page, have 10 votes per share. Class-C shares are typically held by employees and have no voting rights.

Do Class C shares pay dividends?

This class of stock has priority distribution for dividends and assets. Class C, Executive Stock – Each share confers 100 votes. Shareholders receive ordinary access to dividends and assets.

What’s the difference between shares and C shares?

Class C shares, on the other hand, have a small or no front-end load, and a small or no back-end load — a sales charge taken out when you sell the shares. Instead, these Class C shares will have a higher annual sales fee taken out each year.

Can a C share be converted to a a share?

Investors cannot convert Class C shares to Class A shares, which have lower expense ratios. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

When do Class C shares convert to 529-c shares?

The CDSC for Class C and 529-C shares is paid only if shares are redeemed within the first twelve months of purchase. Class C shares convert to Class A shares after 8 years.

Are there any fees with Class C shares?

While there are no front-end fees with Class C shares, a back-end load is charged if funds are withdrawn within the first year. Additionally, investors who purchase Class C shares could pay a high annual management fee.