Do C shares have a sales charge?
Class C shares do not impose a front-end sales charge on the purchase, so the full dollar amount that you pay is invested. Unlike B shares, they typically do not convert to class A shares and, instead, continue to charge higher annual expenses (including 12b-1 fees) for as long as the shares are held.
What fees does American Funds charge?
At American Funds, it’s standard for a 5.75% load fee on stock-heavy funds, and 3.75% on bond funds. This is in addition to expense ratios ranging from 0.59% to a full 1%. So, for every $1,000 you place in an American fund, $50.75 is gone immediately to pay the cover charge into that fund.
How is CDSC calculated?
The CDSC will be calculated from the date of the initial purchase, excluding the time shares were held in Class B, or Class C shares of a money market fund.
Does American Funds charge high fees?
American Funds charges front-end loads and back-end loads, and has high expense ratios; Vanguard’s Funds are no-load and have low expense ratios. American Funds products are actively managed by portfolio managers; Vanguard Funds are passively managed.
How long does it take for C shares to convert to A shares?
To keep long-term investors from paying higher fees over time, Class C shares, including shares acquired by dividends, convert to Class A shares after an investor has owned them for 8 years.
What is Share CDSC?
A contingent deferred sales charge (CDSC) is a fee, sales charge or load, which mutual fund investors pay when selling Class-B fund shares within a specified number of years from the original purchase date. The financial industry usually expresses a CDSC as a percentage of the dollar amount invested into a mutual fund.
What is CDSC account?
This is a computer system operated by The Central Depository and Settlement Corporation (CDSC) that facilitates holdings of shares in electronic accounts, opened by shareholders and manages the process of transferring shares traded at the Stock Exchange.
What is CDSC?
What is the CDSC for American funds Class C?
The CDSC is assessed on shares sold within a specified period. It is also known as a back–end load. The CDSC on American Funds Class C and Class 529-C shares is 1%, and is assessed on certain redemptions made within the first year of purchase.
Is there a CDSC on Class A shares?
Class-A shares typically have a front-end load, but no CDSC. Class-B shares often have no front-end sales charge but have the potential for a sales charge upon the sale of shares.
What is average annual compound return with CDSC?
The average annual compound return “with CDSC” is the gain or loss made on an investment if you paid the maximum back–end sales charge (1% for Class C and 529-C shares). NAV, or “net asset value,” is the value of a fund share.
Do you have to pay CDSC on 529 F-1 shares?
Class F-1, F-2, F-3 and 529-F-1 shares do not have an up-front or a contingent deferred sales charge (CDSC). Class F-2 shares also do not carry a 12b-1 fee but are subject to sub-transfer agency fees. These expenses will vary among the funds. Class F-3 shares do not carry 12b-1 or sub-transfer agency fees.