• Buying Class C Shares

  Class C shares usually do not impose a front-end sales charge on the purchase, so the full dollar amount that investors pay is immediately invested. Often Class C shares impose a small charge if they sell their shares within a short time of purchase, usually within one year. Class C shares typically impose higher asset-based sales charges than Class A shares, and since their shares generally do not convert into Class A shares, their asset-based sales charge will not be reduced over time. Class C shares are often used for asset-allocation purposes.

  While Class C shares do not impose a sales charge at the time of purchase, they may impose a CDSC or other redemption fees. Additionally, in most cases the investor's expense ratio would be higher than Class A shares, and even higher than Class B shares if the investor holds for a long time.

  • Annual Operating Expenses: Annual fund operating expenses pay for the ongoing costs of running the fund and other services. These fees are shown in a fund's prospectus expressed as a percentage of the fund's average net assets as Total Annual Fund Operating Expenses. These include management fees, 12b-1 fees (for advertising and marketing expenses), and other expenses. Total annual fund operating expenses vary from fund to fund.
    • Management Fees: These fees are ongoing fees charged by the fund's investment adviser to cover the cost of managing the fund and selecting the fund's portfolio of securities. Typically, management fees are the largest component of a fund's total operating expense.
    • Distribution (12b-1) Fees: These fees are used to pay for marketing expenses, promotions and distribution expenses.