Determine the share class right for you When investing in a mutual fund, you have the option to choose the share class that best meets your needs. The most common have been listed below. The difference between them typically depends on how much you will be charged for buying the fund. This structure allows you to choose a share class that’s right for you.
Sales charges differ by share class Class A and Investor Class shares
An initial sales charge is payable when shares are purchased. There is no sales charge to redeem (or sell) shares.
Class C shares
There is no charge to purchase shares. Shares sold within a specified period of time after purchase are subject to a 1% sales charge that is deducted from the redemption proceeds. There is no charge to redeem (or sell) shares that are held for more than one year.
NOTE: For Class A shares, you may qualify for a reduction or waiver of sales charges depending on how much you invest (see below). Breakpoint
The dollar amount for the purchase of a fund’s shares that qualifies an investor for a reduced sales charge. Mutual funds that charge front-end sales loads may reduce the sales load if a larger investment is made. Investment thresholds are established for these larger investment amounts, which are then used to determine the reduction in the sales load. These threshold levels are referred to as “breakpoints.” Mutual funds are not required to offer breakpoints in the sales load. If they do, the breakpoints must be disclosed. Allows an investor to qualify for a breakpoint discount based on the total amount of purchases agreed to be made in the near future.
Letter of intent
Rights of accumulation
Allows an investor to qualify for a breakpoint based on the total value of previous purchases.
Your financial professional can help you determine a share class most appropriate for you.
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