Consider a mutual fund with two share classes. Class A Class B Front-end 5% - Back-end - 4% 12b-1 - 0.50% Expense ratio 1.50% 1.50% Class B shares back-end load fees start at 4% and fall by 1% for each full year the investor holds the portfolio. Assume the rate of return on the fund portfolio net of expenses is 10% annually. The expected return in Class A is greater than that of Class B if the investment horizon is longer than year(s).