Why Do the Stated Percentage Load Charges of Mutual Funds

question 33

Multiple Choice

Why do the stated percentage load charges of mutual funds not fully reflect the percentage costs of the sales fees?

• A) mutual fund load charges are paid after the investor's assets are invested.
• B) as the investor has fewer dollars to invest after paying the load charges, the load charges therefore are a lower percentage of the actual invested amount than originally invested
• C) certain mutual funds increase their sponsor's revenues at the expense of existing shareholders
• D) mutual fund load charges are paid before the investor's assets are invested and the charges are therefore a higher percentage of the actual invested amount after paying the load

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