What Is the Least Expensive Share Class to Invest In?

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The least expensive share class to invest in requires you to be able to identify a few key things. Find out about the least expensive share class to invest in with help from a professional financial planner in this free video clip.

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Video Transcript

Hi, my name is Michael Hardy. I'm with Mullet and Hardy, and today we're going to talk about the least expensive share class. When we talk about share class, typically we're talking about the commission or the price paid into a mutual fund. So if you are an investor and you want to purchase a share of a mutual fund, typically you have to buy a class of share. It could be an A share, it could be a B share or it could be a C share. The cost is different for each class that you buy. An A share is typically going to have an upfront expense that's associated with that purchase. A B share is going to have no upfront cost but have a back and surrender charge associated with that share class and a C share has a higher internal expense on its share class but no upfront cost. The least expensive purchase depends upon your length that you own the share class. For example, a C share may be the least expensive if you own it for the least period of time, even though it's the most expensive on an annual basis, it's typically the least expensive for a small period of time, maybe three to five years. An A share is typically going to be the least expensive share class over the longest period of time. So if you own a mutual fund for ten years or longer, your best bet is to buy an A share because it will cost you the least over that time period. So that's the least expensive share class that's available. My name is Michael Hardy with Mullet and Hardy. Thank you.


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