You are going to invest in the AIC Stock Fund that has A, B, and C share classes. All share classes have a thirty basis point management fee. The A shares have a five percent front-end load and no annual administrative fee. The B shares have a three percent back-end load and a seventy-five basis point annual administrative fee. The C shares have no load and a one hundred basis point annual administrative fee. If your investment horizon is thirty years, the ___________ shares would be the best alternative.

Question

Quizplus · Accepted Answer

Given a thirty-year investment horizon, A shares are typically the best alternative due to the one-time front-end load of five percent and no annual administrative fees. B shares and C shares impose additional costs over time through back-end loads and higher annual administrative fees, respectively, which can significantly erode investment returns over a long period.

You Are Going to Invest in the AIC Stock Fund