- 1 What is the difference between class A shares and class C shares?
- 2 Which mutual fund category is best?
- 3 What does class C shares mean?
- 4 Should I buy A shares or C shares?
- 5 Do Class A shares pay dividends?
- 6 What stocks are Class A?
- 7 Which fund is best to invest in 2020?
- 8 How do C shares pay advisors?
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?
|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%|
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.
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.
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|
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.