When purchasing the fund, what options do you have regarding sales charges?
Understand the Problem
The question is asking about the options related to sales charges when purchasing a fund. It implies understanding various potential fee structures and options that may be available to the investor.
Answer
Options include front-end and back-end sales charges.
When purchasing a fund, you have the option of paying front-end sales charges, which are paid at the time of investment, or back-end sales charges, which are paid upon selling the fund shares.
Answer for screen readers
When purchasing a fund, you have the option of paying front-end sales charges, which are paid at the time of investment, or back-end sales charges, which are paid upon selling the fund shares.
More Information
Sales charges (loads) can be either front-end, paid at purchase, or back-end, paid during redemption, allowing for flexibility depending on investment goals.
Tips
A common mistake is not understanding that back-end charges may decrease over time, making them less costly if you hold onto the investment long-term.
Sources
- What are Sales Charges? - investopedia.com
- Mutual Fund Fees and Expenses - investor.gov
- Sales Charge (or Load) - investor.gov
AI-generated content may contain errors. Please verify critical information
