What are Class B Share Mutual Funds?

Answer:
Mutual fund "classes" vary in the

ways investors buy them and in what fees might apply, how much and how often.

Class B share mutual funds are financial investment entities which, according to the Securities and Exchange Commission website, "might not have any front-end sales load, but might have a contingent deferred sales load (CDSL)".

The CDSL is a type of fee that becomes due once investors cash in on the mutual fund shares. Since this fee generally diminishes over time, investors who hold onto fund shares long enough will reach zero charges.

Class B mutual funds also carry a 12b-1 fee, which is an annual fee paid (from the mutual funds) for shareholder, distribution or other services.

Class B mutual funds are generally convertible to other classes of funds which might carry lower fees. For example, class B mutual funds might convert to class A mutual funds after a prescribed period of time, such as eight years.

As with any financial investment, the best way to learn about mutual fund classes and investments is to consult with a reputable financial advisor or institution engaged in marketing and managing investment plans and programs.