• Buying Class B Shares

  Class B shares typically do not have a front-end sales charge, but they do impose asset-based sales charges that may be higher than those investors would incur if they had purchased Class A shares. Class B shares also normally impose a contingent deferred sales charge (CDSC), which investors pay when they sell their shares. The CDSC normally declines and eventually is eliminated once the investors hold their shares long enough. Once the CDSC is eliminated, Class B shares often then "convert" into Class A shares. When they convert, they begin to require the same asset-based sales charge as the Class A shares, which is typically lower. Because Class B shares do not impose a sales charge at the time of purchase, unlike Class A purchases, all of investor's dollars are immediately invested. But their expenses, as measured by the expense ratio, may be higher. They may also pay a sales charge when they sell their Class B shares.