SIE Understanding Products and Their Risks Question 52: Answer and Explanation

Question: 52

Which share class allows investors to see fees most clearly?

• A. Class A
• B. Class B
• C. Class T
• D. Clean shares

Correct Answer: D

Explanation:

D: Choice D is correct because clean shares have no sales load or 12b-1 fees. Advisors may charge for their advice when recommending this share class. The advisor's fees are readily seen, as they are separate from the mutual fund's fees. Choices A, B, and C are incorrect because these fees, directly related to the mutual fund, are not so readily seen as the fees of an advisor recommending clean shares.