C-Share

C-Share

What is a ‘C-Share’

A C-share is a class of mutual fund with a level load. Class C shares tend to not have front-end loads, but they often carry small back-end loads. These loads are typically around 1% and may vanish once the investor has held the shares of the mutual fund for a year.

Explaining ‘C-Share’

Class C shares often have lower expense ratios than class B shares but higher expense ratios than class A shares. Class C shares may be a good option for investors who plan to sell after a relatively short period but will hold the shares for at least a year.

Fees Associated with Class C Shares

In addition to the back-end load of contingent deferred sales charge (CDSC) associated with class C shares, these shares may also charge a 12b-1 fee. A fund charges a 12b-1 fee to cover its distribution and marketing costs. Total 12b-1 fees are capped at 1% annually and are reflected in the fund’s expense ratio. Of the 1% fee, distribution and marketing expenses can be up to 0.75%, while service fees max out at 0.25%.

Example of a Fund Offering Class C Shares

The Calamos Growth Fund is an example of a fund with both class A and class C shares. The class A shares charge an expense ratio of 1.32%, 0.25% of which is a 12b-1 fee, and a maximum 4.75% front-end load that decreases based on the amount that is invested. The fund’s class C shares don’t have a front-end load, but they carry a maximum 1% CDSC on shares held less than one year. The class C shares also impose the maximum 1% 12b-1 fee, pushing the fund’s overall expense ratio to 2.07%.

Further Reading

Macro-economic effects of stabilisation under financial repressionMacro-economic effects of stabilisation under financial repression
www.jstor.org [PDF]… Firms are assumed to finance their capital stock by borrowing from either banks or the … Lectures on structuralist macro economic theory (the MIT Press) Wijnbergen Van, 1983 a, Credit … and growth in a financially repressed economy, Journal of Development Economics, 13 Aug …

Economic effects of VAT reforms in GermanyEconomic effects of VAT reforms in Germany
www.tandfonline.com [PDF]… Firms are assumed to finance their capital stock by borrowing from either banks or the … Lectures on structuralist macro economic theory (the MIT Press) Wijnbergen Van, 1983 a, Credit … and growth in a financially repressed economy, Journal of Development Economics, 13 Aug …

Economic aspects of decentralized government: Structure, functions and financeEconomic aspects of decentralized government: Structure, functions and finance
academic.oup.com [PDF]… Firms are assumed to finance their capital stock by borrowing from either banks or the … Lectures on structuralist macro economic theory (the MIT Press) Wijnbergen Van, 1983 a, Credit … and growth in a financially repressed economy, Journal of Development Economics, 13 Aug …

Financial markets, financial dependence, and the allocation of capitalFinancial markets, financial dependence, and the allocation of capital
www.sciencedirect.com [PDF]… Firms are assumed to finance their capital stock by borrowing from either banks or the … Lectures on structuralist macro economic theory (the MIT Press) Wijnbergen Van, 1983 a, Credit … and growth in a financially repressed economy, Journal of Development Economics, 13 Aug …

The role of trade finance in the US trade collapse: A skeptic's viewThe role of trade finance in the US trade collapse: A skeptic's view
elibrary.worldbank.org [PDF]… Firms are assumed to finance their capital stock by borrowing from either banks or the … Lectures on structuralist macro economic theory (the MIT Press) Wijnbergen Van, 1983 a, Credit … and growth in a financially repressed economy, Journal of Development Economics, 13 Aug …

Computing efficient financial strategies: An extended compromise programming approachComputing efficient financial strategies: An extended compromise programming approach
www.sciencedirect.com [PDF]… Firms are assumed to finance their capital stock by borrowing from either banks or the … Lectures on structuralist macro economic theory (the MIT Press) Wijnbergen Van, 1983 a, Credit … and growth in a financially repressed economy, Journal of Development Economics, 13 Aug …

The Algerian Retrenchment System: a financial and economic evaluationThe Algerian Retrenchment System: a financial and economic evaluation
academic.oup.com [PDF]… Firms are assumed to finance their capital stock by borrowing from either banks or the … Lectures on structuralist macro economic theory (the MIT Press) Wijnbergen Van, 1983 a, Credit … and growth in a financially repressed economy, Journal of Development Economics, 13 Aug …

Financial repression, the new structuralists, and stabilization policy in semi-industrialized economiesFinancial repression, the new structuralists, and stabilization policy in semi-industrialized economies
www.sciencedirect.com [PDF]… Firms are assumed to finance their capital stock by borrowing from either banks or the … Lectures on structuralist macro economic theory (the MIT Press) Wijnbergen Van, 1983 a, Credit … and growth in a financially repressed economy, Journal of Development Economics, 13 Aug …