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Understanding Mutual Fund Classes: Class B





Class B shares - If you purchase Class B shares, you don't pay a sales charge right away. Instead, you'll pay a "back-end load" when you sell your shares. Typically, this back-end load decreases over time; for most Class B shares, the load disappears after about six or seven years. Class B shares often charge a higher 12b-1 fee - as much as 1 percent per year. However, Class B shares often convert to Class A shares over time, so you would then start paying the lower 12b-1 fee.



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