What is the difference between B fund and C fund?
Shares of the same fund offer different shareholder rights and obligations, such as different fee and load charges. Common share classes are A (front-end load), B (deferred fees), C (no sales charge and a relatively high annual 12b-1 fee).
What is the difference between B and C shares?
Class A shares involve paying a fee when you purchase your shares. Class B shares impose a fee when you sell your shares. Class C shares impose a fee while holding the shares, such as 0.5% of the value of the share per period.
What is the difference between A and B funds?
Investors also see an important difference between series A and series B. Series A investors know there's a greater risk, and therefore they can pay a lower equity price. In return for parting with their cash they will expect high future returns. Series B investors are more risk averse.
What is the difference between A and C funds?
Like Class B shares, Class C shares typically impose higher annual operating expenses than Class A shares due primarily to higher 12b-1 fees. Class C shares may be less expensive than Class A or B shares if you have a shorter-term investment horizon because you'll pay little or no sales charge.
What is the C fund?
The TSP C Fund is a U.S. stock index fund invested in common stocks of the 500 companies in the Standard & Poor's 500 (S&P 500) Index. Many of the stocks in the index are household names, such as General Electric, Coca Cola, Exxon Mobil, and Walt Disney.
Do C shares automatically convert to A shares?
To reduce ongoing costs for long-term investors, Class C shares, including shares acquired by dividends, convert to Class A shares after an investor has owned them for 8 years.
How do C shares work?
Class C shares are level-load shares that don't impose a sales charge unless you sell too soon after your purchase (usually a period of a year). Instead, mutual funds charge an ongoing annual fee. C shares are probably best for short term investors of beyond one year and no more than three years.
Do American funds C shares convert to A shares?
Class C and 529-C shares — often called level-load shares — do not have an up-front sales charge. Class C shares convert to Class A shares after 8 years.
What is a B fund?
A B-fund is a defined CONTRIBUTION plan (an amount given to you each payroll period as a percentage of your income), versus an A-fund or a defined BENEFIT plan (traditional pension that guarantees a benefit, regardless of amount invested during your employment).
Is it better to buy a B or C shares in a mutual fund?
Shorter-term investors anticipating very large purchases should also consider Class A rather than Class C shares due to the significant breakpoint discounts available at those investment levels. In certain limited instances, Class B shares (the deferred sales charge alternative) may be appropriate.
What are the two main types of funds?
While all funds have different strategies and aims, there are two main types of fund available: active funds and passive funds.
Is the C fund risky?
The C Fund is a heavily diversified investment but it does come with the risks. The C Fund is moderately volatile and is subject to market risk as the price of stocks in the S&P 500 Index rise and fall. Further, you are exposed to inflation risk if your C Fund investment does not grow enough to offset inflation.
Is the C fund good?
The common stocks of the C Fund continued its strong recent showing, increasing 5.34% last month. The C Fund has grown 7.49% in 2024, marking the best performance among the TSP's core funds.
What does Class C mean in funds?
C-Class. C-Class shares are not subject to a sales charge at the time of purchase. An order for C-Class shares will be priced at the next NAV calculated after the order is received in good order and accepted by the fund or an authorized financial intermediary.
Does the C fund pay dividends?
Only the common stocks (C) fund, the small- and mid-sized companies (S) fund, and the international stocks (I) fund make part of their earnings from dividends. The rest of the earnings for the C and S funds are derived from fluctuations in the market value of the stocks making them up.
What is the interest rate for the C fund?
Thrift Savings Plan C Fund Monthly Returns (I:TSPCFMR)
Thrift Savings Plan C Fund Monthly Returns is at 1.68%, compared to 4.54% last month and 6.28% last year. This is higher than the long term average of 0.95%.
What is the difference between Class A and Class C funds?
Class A shares generally have more voting power and higher priority for dividends, while Class B shares are common shares with no preferential treatment. Class C shares can refer to shares given to employees or alternate share classes available to public investors, with varying restrictions and voting rights.
What is the difference between the C fund and the L fund in the TSP?
The C Fund is the Fund with the 2nd highest allocation with 29.5% of participant assets. The L Funds have 23.3% of participant assets. There has been a change since the end of 2021. That year, the TSP provided participants with excellent results.
What are the C and S funds?
| Investments | |
|---|---|
| C Fund | Stocks of large and medium-sized U.S. companies |
| S Fund | Stocks of small to medium-sized U.S. companies (not included in the C Fund) |
| I Fund | International stocks of 21 developed countries |
| L Funds | Invested in the G, F, C, S, and I Funds |
Should I put 100% in C fund?
If we were all trying to just make as much as possible, we'd put 100% of our money in the C fund because it has the highest average return over its lifetime.
How long should you hold C shares?
Class C shares would work best for investors planning to keep the fund for a limited, intermediate period, optimally more than one year but less than three. That way, you hold on long enough to avoid the CDSC, but not so long that the high expense ratio will take a major toll on the fund's overall return.
Why do companies issue C shares?
Companies often classify different classes (=types) of shares using letters. C share is used most commonly to describe a new class of shares issued by an investment company. The C shares have their own portfolio while the money raised by issuing them is invested.
How long does it take for C shares to convert to A shares?
1. The conversion of Class C shares into Class A shares—which, prior to January 22, 2021, happens automatically approximately 10 years after purchase and, starting on or about January 22, 2021, happens automatically approximately 8 years after purchase—is not a taxable event for federal income tax purposes.
What are the advantages of C shares?
Lower expenses: One of the most significant advantages of Class C shares is that they typically come with lower expenses than other types of shares. This is because class C shares do not have front-end sales loads or back-end loads, which are fees that investors may be charged for buying or selling shares.
