To maximize their statements without paying a higher fee for it, the different categories of mutual funds and their advantages and disadvantages of awareness. Parties mutual funds in companies generally charge more when you invest in shares at high yield "high risk". However, higher prices do not necessarily pay for high performance because stock prices change every day. This makes it difficult even for professional fund managerspredict the future price of a stock. Categories of funds, which shows the type of activities covered by each of the funds and taxes. The categories of mutual funds often are A, B and C.
The population of the class
To win these types of stocks and reduce 12b-1 fees than the best when it was decided to hold the investment for two years or more. Investing in shares and makes you the right to receive discounts, as often as your investmenta certain amount. The amount will be selected when purchasing mutual funds and is called the breaking point "." Discounts are available when they expressed their intention to reach the breakpoint within a specified period. However, if you reach the breaking point before the deadline, as stated in the memorandum will be scheduled before the end.
Class B Shares
These measures arethe contingent deferred sales charge and are suitable for investors who have limited resources and are looking for long term investment. Private investors prefer this type of action because they are not obliged to reduce business taxes and costs of deferred acquisition costs further. Another advantage is that these actions are automatically converted into Class "A", an annual growth rate of expenditure management and SP have the problem only to shares of Class B is thatobligated to pay the deferred sales charge, if your withdrawal before maturity. Another disadvantage is that no rebate, because there are no provisions for a breakpoint. This means that you are not able to reduce investment costs, even if it increases its investment.
Class C Shares
These types of interventions most effective for those who want to buy shares in a short period. Are advantageous becausepayment of a fee increase. The back-end load is less than one percent in many cases. Furthermore, what percent one hand, the axial deformation is to eliminate the investment, if more than one year is held. Some of the disadvantages for the population of class C "are required back-end load, most of MER, restoration, and does not provide automatic conversion.
To take advantage of your investments, you should consider various factors like time, with the intention to invest, the frequency of itsInvestments and funds withdrawn in the near future. The analysis of the advantages and disadvantages to help the individual classes of shares, select the most appropriate investment, depending on their specific needs and preferences.