Monday, October 22, 2007
In a few years Class B shares in mutual funds may be extinct, thanks to regulatory pressure to thwart brokers' sales of B shares in lieu of more suitable A shares, as well as (perhaps) better investor education as to the differences. In recent years, investors have pulled out more money from B shares than they have invested; last year, net outflows were more than $57 billion, according to an industry source. Brokers frequently pushed more expensive B shares as an alternative for "no-load" funds because the sales charge was at the back end. In addition, B shares were frequently sold to customers whose dollar amounts made A shares a better deal. InvNews, Sales of B shares continue to wane.