The below handout is one provided by FINRA as part of its Investor Alert series. The brochure illustrates some of the differences between Mutual Fund Share Classes.
FINRA stands for Financial Regulatory Authority. It is an independent agency authorized by Congress to oversee and regulate the Securities Industry.
For more information, visit FINRA's website:
Mutual Fund investing has been an enormously popular & common way for individuals to save for decades.
That being said, just because they're popular doesn't mean they're necessarily appropriate for everyone.
As with any investment, they contain features and benefits that can be viewed as both positive and negative.
And as with any investment, a great deal of Due Diligence should be performed when selecting a fund.
To the right is a very basic illustration identifying the typical mutual fund relationship. The Investor, Advisor, and potential underlying investments are presented in a flow-chart fashion.
Phoenix Global Research