A-Share

When a mutual fund is put into a multi-class family they typically have A-shares include a loaded fee structure. This means that by buying A-shares you will have to pay a front or rear-end load which can run as high as 5% and should typically be avoided.

This fee associated with a loaded fund is compensation for a sales person or company for referring you to the fund. The only advantage to this is that typically these funds have a lower management expense ratio which is due only to the fact that you are paying an added fee to get in or exit the fund.

Multi-class mutual funds also include B-shares and even C-shares.

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