Back end loaded mutual funds are most appropriate for

Question

Quizplus · Accepted Answer

Back end loaded mutual funds typically have higher fees in the beginning that are only charged if the investor sells shares within a specific time frame. Therefore, they may not be appropriate for investors with a long time horizon as they would end up paying higher fees unnecessarily. However, they may be appropriate for investors with a short time horizon who are willing to pay higher fees upfront in exchange for potentially lower fees later on if they hold the shares for the required period.

Back End Loaded Mutual Funds Are Most Appropriate for