Share classes and breakpoints
ARTICLE TAKEAWAYS
- Share class overview
- How to reduce the sales charge for Class A shares
- Net asset value (NAV) policies
Overview of available share classes
American Funds offers a variety of share class options to accommodate investors’ objectives and timelines. Compensation for the financial professional varies by each share class.
Class A, 529-A and ABLE-A shares
Class A shares are sold with an upfront sales charge. The sales charge is reduced for larger purchases and account values.
Note: The American Funds U.S. Government Money Market Fund A share does not have an upfront sales charge; however, shares that are exchanged from the money market fund into other A share funds will be charged the appropriate sales charge at the time of the exchange.
View the full list of A share breakpoints at Share class pricing and details.
Reducing the sales charge for A shares
American Funds offers the following options for reducing the upfront sales charge for accounts with A shares:
Net asset value (NAV) policies
American Funds has the following NAV policies:
Class F shares
Many dealer firms offer fee-based programs that allow investors to purchase mutual funds for an asset-based fee instead of paying commissions or sales charges. Class F-1 shares are primarily available through certain financial services platforms that support self-directed investors. Class F-2, F-3, 529-F-2, 529-F-3 and ABLE-F-2 shares are used in fee-based programs at most firms.
Class C shares
The C share and 529-C share classes do not have an upfront sales charge; however, a contingent deferred sales charge of 1% may be applied on shares redeemed within one year of purchase.
Class 529-E shares
This share class is available only through employer-sponsored 529 plans. Class 529-E shares do not have an upfront or contingent deferred sales charge.
Class R shares
The R share class provides flexibility in retirement plan pricing. The eight share classes are differentiated by the ways plan sponsors and participants pay for plan services.
For additional details on share classes, expenses, minimums and restrictions, review Share class pricing and details or the Resource Guide.
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