A class of mutual fund with a level load. Class C shares don't have front-end loads, but have small back-end loads that are typically around 1% and may vanish once the shares have been held for a year. They have lower expense ratios than class B shares, but higher expense ratios than class A shares. Class C shares can be a good option for investors who will sell after a relatively short period, but will hold the shares for at least a year.


Investors who plan to withdraw funds within a year may want to avoid C-shares because of the back-end load that is typically charged on short-term redemptions. At the same time, the higher ongoing expenses associated with C-shares make them an unappealing option for long-term investors. Countless mutual funds offer both low ongoing expenses and no front- or back-end loads, so it is easy to avoid the drawbacks associated with C-shares. Higher mutual fund fees are not associated with higher mutual fund returns.

  1. Back-End Load

    A fee (sales charge or load) that investors pay when selling ...
  2. Net Asset Value - NAV

    A mutual fund's price per share or exchange-traded fund's (ETF) ...
  3. Expense Ratio

    A measure of what it costs an investment company to operate a ...
  4. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
  5. Front-End Load

    A commission or sales charge applied at the time of the initial ...
  6. A-Share

    In a family of multi-class mutual funds, this is the class that ...
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