What is the difference between class A shares and class C shares?

What is the difference between class A shares and class C shares?

Class A and B shares are aimed at long-term investors, whereas Class C shares are for beginning investors who aim for short-term gains and may have less money to invest. Class C shares, especially those with no load, are the least expensive to purchase, but they will incur higher fees in the long term.

Which mutual fund category is best?


Category 1Y 2Y
Equity: Focused Fund Equity: Focused Fund 48.6% 24.5%
Equity: Dividend Yield Fund Equity: Dividend Yield Fund 53.3% 27.4%
Equity: Contra Fund Equity: Contra Fund 59.0% 29.7%
Hybrid: Aggressive Hybrid Fund Hybrid: Aggressive Hybrid Fund 39.0% 21.1%

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.

Should I buy A shares or C shares?

Class C mutual fund shares are best for investors who have a short time horizon and plan on redeeming their shares soon. Additionally, investors who purchase Class C shares could pay a high annual management fee. Investors cannot convert Class C shares to Class A shares, which have lower expense ratios.

Do Class A shares pay dividends?

These benefits include dividend priority and liquidation preferences, in addition to increased voting rights. That means people who own traditional Class A shares of a company are paid first when the company distributes dividends. They are also paid first in the event of an exit.

What stocks are Class A?

Class A shares are common stocks, as are the vast majority of shares issued by a public company. Common shares are an ownership interest in a company and entitle purchasers to a portion of the profits earned. Investors in common shares are usually given at least one vote for each share they hold.

Which fund is best to invest in 2020?


Scheme name Percentage (%)
Axis Bluechip Fund – G 25
ICICI Prudential Bluechip Fund – G 15
Motilal Oswal Multicap 35 Fund – G 10
Aditya Birla Sun Life Regular Savings Fund -G 50

How do C shares pay advisors?

C Funds that have lower investment minimums and carry a level-load structure. This sales charge is typically a recurring fee of 1% that is used on an annual basis to compensate advisors. C shares do not include a front-end sales charge, but their expense ratio is typically higher than B shares.

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