Which class of shares makes more sense for an investor

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A mutual fund offers class "A" shares which have a one-time 5.0% upfront load and an annual expense ratio of 0.76%.

This mutual fund also offers class "B" shares which have an annual 12b-1 fee of 0.55% and an annual expense ratio of 0.87%.

Assume that both classes of shares are similar in risk, return, and investment objectives.

Which class of shares makes more sense for an investor considering a 10-year investing horizon? Show your calculations.

Reference no: EM131881557

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