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C Share

What is a C share?

A C share is a type of share class for mutual funds.

While C share funds are ideal for brokers and investment advisors, as they will incur more money, they aren’t recommended for individual investors because they have relatively high expense ratios.

C shares are perfect for investors hoping to keep the mutual fund for 1–3 years, because they can avoid front- and back-end sales charges. However, there is an annual charge deducted for fund marketing, distribution, and commission, among many other costs, for the duration of time that the fund is held by the investor. This annual charge is known as a 12b-1.