C-Share

What is a 'C-Share'

A C-share is 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.

BREAKING DOWN 'C-Share'

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.
 

RELATED TERMS
  1. Class Of Shares

    1. Types of listed company stock that are differentiated by the ...
  2. Back-End Load

    A fee (sales charge or load) that investors pay when selling ...
  3. B-Share

    A class in a family of multi-class mutual funds. This class is ...
  4. Load

    A sales charge or commission charged to an investor when buying ...
  5. Level Load

    An annual charge deducted from an investor's mutual fund assets ...
  6. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
Related Articles
  1. Mutual Funds & ETFs

    The ABCs of Mutual Fund Classes

    There are three main mutual fund classes, and each charges fees in a different way.
  2. Professionals

    Share Class

    FINRA Series 6: Section 10 Share Class. In this section Class A, B, C and other classes of shares are discussed and deciding which is more suitable for a particular investor.
  3. Professionals

    Classes of Fund Shares

    FINRA/NASAA Series 66 Section 1 - Classes of Fund Shares. In this section class A, B, C shares and other class shares.
  4. Mutual Funds & ETFs

    Which Fund Share Class is Best for Retirement?

    Mutual funds are a popular investment for retirement. Here's how to choose the best share class when investing in them.
  5. Mutual Funds & ETFs

    Mutual Funds: The Costs

    Costs are the biggest problem with mutual funds. These costs eat into your return, and they are the main reason why the majority of funds end up with sub-par performance. What's even more disturbing ...
  6. Professionals

    Mutual Fund Expenses

    Mutual Fund Expenses
  7. Investing Basics

    Explaining Front-End Load

    A front-end load is a commission or sales charge paid by the investor at the initial purchase of an investment.
  8. Mutual Funds & ETFs

    ETFs vs. Mutual Funds: The Lowdown on Costs

    Confused about the full range of fees on ETF and mutual funds? Here's a quick guide on fees and expenses.
  9. Retirement

    7 Reasons to Yank a Mutual Fund from Your 401(k)

    Not all mutual funds are created equal. Here are some practical tips for recognizing – and ditching– low-value mutual funds that might be in your 401(k).
  10. Mutual Funds & ETFs

    How To Pick A Good Mutual Fund

    Picking a good mutual fund might be easier than you think.
RELATED FAQS
  1. Is the upfront cost of Class A mutual fund shares worth it?

    Learn about the differences between mutual fund share classes, and discover under what circumstances the Class A shares make ... Read Answer >>
  2. Are Class A mutual funds a better choice for long-term investments or short-term ...

    Understand why A-shares make better long-term investments than short-term investments and how annual expenses of A-shares ... Read Answer >>
  3. How are a mutual fund's C shares different from A and B shares?

    Learn how a class C share differs from a class A or B share in relation to a mutual fund. Read Answer >>
  4. What do the different types of mutual fund classes mean?

    When checking for different quotes on mutual funds, you might see different prices for classes of mutual fund shares that ... Read Answer >>
  5. When are mutual funds considered a bad investment?

    Learn when mutual funds are considered a bad investment for investors who worry about high expenses, lack of control over ... Read Answer >>
  6. What's the difference between a load and no-load mutual fund?

    A mutual fund is simply a large group of people who lump their money together for a management company to invest. And, like ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center