How to Choose the Right Share Class
You'll want to opt for the no-load or institutional share class instead. If you're a no-load investor who is determined to buy a fund that's primarily broker-sold, go through a supermarket and opt for the D shares.
If you are using a broker or planner, the decision about whether to opt for the A, B, or C share class boils down to your own time horizon and, to a lesser extent, how much you're investing. If you plan to invest for the long haul--say, 10 years or more--the A shares will invariably make more sense for you than the B or C shares. That's because A shares' lower ongoing expenses will offset the higher fee you'll pay to get in. At Morningstar, we believe in long-term investing, and that's why we tend to recommend A shares over B or C shares; if you're a Morningstar.com Premium Member, you'll notice that our Analyst Reports of broker-sold funds typically apply to the A shares, too.
So should you ever use B or C shares? Possibly, if you expect to hold a given fund type for a short period of time. If you plan to own a fund for just a year or two, for example, you may want to opt for C shares, and if your time horizon is in the neighborhood of five years or fewer, B shares may be the way to go. Morningstar's Cost Analyzer tool can help you determine the correct share class given your anticipated time horizon and the amount of money you have to invest. (Cost Analyzer is available to Premium Members of Morningstar.com; for a free trial membership, click here.)
Protect Yourself: Know Your Rights and Ask QuestionsMany brokers and planners work hard to select the correct share class for their clients, but you should also be aware of unscrupulous practices in this area. B and C shares carry higher expenses, and part of those fees, called 12b-1 fees, go straight to the broker each year. Thus, some brokers might be inclined to recommend B or C shares even if they're not the best deal for their clients. Some fund shops--including Franklin--have stopped selling B shares altogether.
To help ensure that you get into the right share class for your needs and time horizon, it never hurts to ask your broker why he or she is recommending a certain share class of a given fund. What assumptions is he or she making about your holding period? Does he or she have a financial incentive to recommend one share class over another?
Also be sure to ask whether your total investment with a given fund family qualifies you for a discounted sales charge. These breakpoints often kick in when your total investment across the fund family reaches $25,000 or more, and they can save you substantial amounts of money. And even if you don't meet the minimum asset level yet, you may still be able to qualify for the discount if you sign a "letter of intent" that states you plan to invest enough money to qualify for the discount within a specified period of time (usually one year). Some brokerage firms have recently gotten into trouble for failing to provide these bulk discounts, so your broker should be well aware of the issue and able to tell you whether you qualify.
Simran Kaur Aims To Make Investing More Approachable For All Women, With Top Podcast And Book, ‘Girls That Invest’ - Forbes
Simran Kaur Aims To Make Investing More Approachable For All Women, With Top Podcast And Book, ‘Girls That Invest’ Forbes
Investing Tips from the 1% InvestorPlace
Outside the Box Bond Investing Yahoo Finance
Investing In 2023: Trends And Statistics Bankrate.com
Report: Investing in Merced College benefits students, taxpayers alike Merced County Times
1 in 4 Americans Is Investing Less to Pay for Everyday Expenses The Motley Fool
Here's where investors made a 'risk-free' 6.6% return in the past four U.S. recessions - MarketWatch
Small Investors Who Jumped Into Crypto on FTX Say, Now What? The New York Times
These money and investing tips can help you know when the bull market has come back to stay - MarketWatch
These money and investing tips can help you know when the bull market has come back to stay MarketWatch
Gov. Whitmer Announces Pfizer Investing $750 Million to Expand U.S. Sterile Injectable Facility, Create 300 Jobs - michigan.gov
Gov. Whitmer Announces Pfizer Investing $750 Million to Expand U.S. Sterile Injectable Facility, Create 300 Jobs michigan.gov
The common arguments for ESG investing are wrong. Here's why. American Banker
Rumors of U.S. Economic Demise Were Greatly Exaggerated Investing.com
Boring is Beautiful in Investing A Wealth of Common Sense
Down 65%, Snowflake Still Has a Big Valuation Problem Investing.com
Investing Millions to Orchestrate an Open Metaverse Yahoo Finance
Today's most important initiations By Investing.com Investing.com
This Commodity Will Sweeten Your Returns Investing.com
Nasdaq Bear Market: 2 Once-In-a-Decade Buying Opportunities for Growth Stock Investors - The Motley Fool
Nasdaq Bear Market: 2 Once-In-a-Decade Buying Opportunities for Growth Stock Investors The Motley Fool
1 Great Reason to Invest in the Stock Market Right Now The Motley Fool
How to Invest With Little Money NerdWallet
China reopening, OPEC+ rollover, Foxconn revenue shock - what's moving markets By Investing.com - Investing.com
China reopening, OPEC+ rollover, Foxconn revenue shock - what's moving markets By Investing.com Investing.com
Today's important price target changes By Investing.com Investing.com
PepsiCo to cut hundreds of jobs at HQ By Investing.com Investing.com
Rumors buzzing around Wall Street today By Investing.com Investing.com
Critical Investing Mistakes Investors Should Avoid Right Now The Motley Fool
Here's Why Investing in MRC Global (MRC) Makes Sense Now Zacks Investment Research
Investing in Schools to Address COVID-19's Toll on Youth Mental Health - Public Policy Institute of California
Investing in Schools to Address COVID-19's Toll on Youth Mental Health Public Policy Institute of California
Australian Dollar Calm Ahead of RBA Investing.com
The Stock Market Has Been Full of Drama in 2022, and It's Masking Investing Opportunities - The Wall Street Journal
The Stock Market Has Been Full of Drama in 2022, and It's Masking Investing Opportunities The Wall Street Journal
10 Common Investing Mistakes That Can Easily Be Avoided Kiplinger's Personal Finance
Opinion | The Best 50-Year-Old Investing Advice Money Can Buy The New York Times
Tesla, Verizon, Starbucks fall premarket; United Airlines, MGM Resorts gain By Investing.com - Investing.com
Tesla, Verizon, Starbucks fall premarket; United Airlines, MGM Resorts gain By Investing.com Investing.com
Today's most important upgrades By Investing.com Investing.com
Classic Book of the Month: Investing in a love for reading WORLD News Group
Goldman Sachs to Spend 'Tens of Millions' on Crypto Investments After FTX Implosion: Report - CoinDesk
Goldman Sachs to Spend 'Tens of Millions' on Crypto Investments After FTX Implosion: Report CoinDesk
WBS PhD Seminar: Investing in Mutual Funds: Exploiting the Cross-sectional Predictability in Fund Performance by Dr. Xin “Shane” Gao - WPI News
WBS PhD Seminar: Investing in Mutual Funds: Exploiting the Cross-sectional Predictability in Fund Performance by Dr. Xin “Shane” Gao WPI News
This tax strategy may offset losses – but investors need to act now or be in for a 'nasty surprise' - CNBC
This tax strategy may offset losses – but investors need to act now or be in for a 'nasty surprise' CNBC
Investors press railroads to add sick time for workers Los Angeles Times
Learn from FTX and stop investing in speculation Cointelegraph
EUR/USD: Second Leg Up After Rally Investing.com
Investing in Impact: Paul Kavuma is a champion of Africa's economic resilience | Cornell Chronicle - Cornell Chronicle
Investing in Impact: Paul Kavuma is a champion of Africa's economic resilience | Cornell Chronicle Cornell Chronicle
Euro Dips on Weak Eurozone Data Investing.com
Cantor Fitzgerald remains bullish after touring Lucid's Arizona facility By Investing.com - Investing.com
Cantor Fitzgerald remains bullish after touring Lucid's Arizona facility By Investing.com Investing.com
Majority of ‘wealthy’ South Koreans say no plan to invest in crypto, cite lack of trust - Yahoo Finance
Majority of ‘wealthy’ South Koreans say no plan to invest in crypto, cite lack of trust Yahoo Finance
Gold on the Verge of a Breakout? Investing.com
Russian seafood companies investing in programs to offset deficit of skilled workers - SeafoodSource
Stock Market Leaders and Laggards
Leaders are stocks that breakout immediately when the market confirms a new rally. In the first several weeks, strong stocks with leadership ability will breakout on volume above their 50-day average.
Success Trading: Some Basic Terminology for New Traders
The world of trading can get very complex because the financial markets are complex. There thousands and thousands of successful traders out there today.
The Truth About Real Estate Investing - Is It Right For You?
You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing.
Effective Advice For A New Generation of Investors
CATCHING A FALLING KNIFEOne of the most common mistakes made by inexperienced investors is trying to "catch a falling knife". This is a habit, common among new investors, of buying stocks that are in "freefall", and it's a bad idea for an investment strategy.
The American Age of Inflation is Over
"The American Age of Inflation is finished." So says economist Robert Samuelson in his December 2nd Washington Post column.
Super Rules, OK?
Do you rule your superannuation or does it rule you?It's easy to fall for some myths about your super unless you do some clear thinking about who is in charge. Virtually all Australian employees now have a superannuation account, many have several, even more than they know about.
Trading For A Living - Part 2
In part 1 of this article I started to look at the financial implications of giving up the day job to instead start trading full time for a living. There are more than just monetary considerations as we will see later, but for now, there are some more costs to ponder.
Protecting the Tax Advantage of Your Deferred Compensation
The American Jobs Creation Act of 2004 imposed strict new rules on non-qualified deferred compensation plans. Beginning in 2005, deferred compensation programs that are not in compliance with the new rules may be taxed as wages, slapped with a 20% excise tax, plus charged an interest penalty.
A Secret Revealed: Why Most (Day) Traders Fail
The following perspective on (day) trading comes from my many years of experience of active day trading or being the moderator of one of the largest day trading chat rooms on the Internet.One of the biggest problems I see with new traders (and even some old ones) has nothing to do with the software or the broker they are using.
Investing in Car Dealerships: Doing Your Homework
This article attempts to help give the investor a broader basis upon which to decide whether a dealership merits their time, money and attention.Interviewing Factories and Financial InstitutionsLenders have an affirmative duty not to promiscuously disclose the financial condition of their debtors.
The Three Legged Stool
My paternal grandparents were born near Lake Como, Italy. My grandfather learned how to farm, and he did just that until he died chopping wood at age 88.
Profitability And Stock Turn Rate
The inventory of the typical store represents the largest single element of its total assets. The sale of goods from this inventory is the merchant's chief source of operating profit.
Beginning Investor - Investment Terms
Over the course of the past two months, readers have brought to my attention that there is a steep learning curve for investment terminology. That's why the focus of this month's Beginning Investor column will be investment terminology.
Before You Invest You Must Read This
It is important to answer the following questions before you begin to invest any of your money. The answers to these questions will help to guide you to when, what, where, and how much to invest.
Why You Need To Buy and Sell Gold Coins (Part 6)
Pre-1933 Gold Outperforms Today's Gold Bullion..
Risk and Reward
If you are doing your own investing in the stock market, what would be the first question you would ask yourself before you make any trade or investment? If your answer is how fundamentally sound the stock is, or whether the stock just broke out of a trading range on a chart, or the fact that the stock has gone down 50% in the last 6 months, or whether the volatility is low now so it is a good time to buy or sell, then you are probably on the road to ruin. These strategies have nothing in common with each other and there are all kinds of different criteria that I did not mention that have nothing in common with each other.
California Deparment of Corporations and Franchise Opportunities Law
What CA Needs To Do To Address Issues in FranchisingWe should not allow anymore degradation of California through incessant over regulations in the franchising sector. No other sector of our economy provides as many jobs as franchising.
Bankers in Denial
Denial is a ubiquitous psychological defense mechanism. It involves the repression of bad news, unpleasant information, and anxiety-inducing experiences.
It's Not the Size of Your Bank Account
You might think that if you win the lottery or get a huge raise, all your problems will be solved. Sounds logical, right? Well, it might sound logical, but it isn't.
Creating a Financial Future - Putting Your Plan Into Action Part 1
This column has previously discussed "picturing the future that we desire", and outlining a plan to achieve it. We mentioned that the plan must include goal-setting, measurement, and implementation.
|home | site map|