Question

Different share classes within a mutual fund differ with regard to load type and expense ratio....

Different share classes within a mutual fund differ with regard to

load type and expense ratio.
load type, expense ratio, and dividends paid.
load type.
expense ratio.

Homework Answers

Answer #1

Correct answer is

load type and expense ratio.

Different share classes within a mutual fund differ with regard to the load type and the expense ratio. Each of the class in one particular type of mutual fund invest in same portfolio of securities, hence the dividend paid will be same for each class. The only difference is in some class front load (Fees paid at the time of buying the mutual fund) is to be paid, in some back end load (at the time of selling), in some no load is charged.

Hence, all the classes differ in the load type and because of the load type and different fees is charged in different classes, there is difference in their expense ratio.

Hope it helps!

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