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Class C shares are often purchased by investors who have less than $1 million in assets to invest in a fund family and who have a shorter-term investment horizon, because during those first years Class C shares will generally be more economical to purchase, hold and sell than Class A shares.
Putnam Investments ? ETFs, Mutual Funds, Institutional, and 529. Putnam is the only fund family ranked in the top 10 by Barron's across all time periods. Barron's list of Best Fund Families, 2023.
Class C shares are level-load shares that don't impose a sales charge unless you sell too soon after your purchase (usually a period of a year). Instead, mutual funds charge an ongoing annual fee. C shares are probably best for short term investors of beyond one year and no more than three years.
Class C shares of a Fund acquired through automatic reinvestment of dividends or distributions will convert to Class A shares of the Fund on the Conversion Date pro rata with the converting Class C shares of the Fund that were not acquired through reinvestment of dividends or distributions.
Class C shares don't impose a front-end sales charge on the purchase, so the full dollar amount that you pay is invested. Often Class C shares impose a small charge (often 1 percent) if you sell your shares within a short time, usually one year.
Class C shares are a class of mutual fund share characterized by a level load that includes annual charges for fund marketing, distribution, and servicing, set at a fixed percentage. These fees amount to a commission for the firm or individual helping the investor decide on which fund to own.
Long-term investors (more than five years, at least, and preferably more than 10) will do best with class A share funds. Even though the front load may seem high, the ongoing, internal expenses of class A share funds tend to be lower than those of B and C shares.
The trailing commission is calculated as a percentage of the entire investment brought to a fund by a particular intermediary. It is calculated on a daily basis and paid every quarter. So, higher the investment an intermediary brings to a fund, higher is the trailing commission.