15) (3 points) An investor is considering the purchase of TriGroup International Equity Fund (TRIEF) for...

 

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15) (3 points) An investor is considering the purchase of TriGroup International Equity Fund (TRIEF) for her portfolio. TRIEF has more than one class of shares. Although all classes hold the same portfolio of securities, each class has a different expense structure. This particular mutual fund has two classes of shares, A and B. The time horizon associated with the investor's objective in purchasing TRIEF is 3 years. She expects equity investments with risk characteristics similar to TRIEF to earn 6 percent per year. Class A shares have a front-end load of 2%, no back-end load and an annual expense of 1.5%. Class B shares have no front-end load and an annual expense of 1.25%. The back-end load for Class B shares is 5% in the first year and declines by 1% each year thereafter. Which class of shares should the investor choose? 15) (3 points) An investor is considering the purchase of TriGroup International Equity Fund (TRIEF) for her portfolio. TRIEF has more than one class of shares. Although all classes hold the same portfolio of securities, each class has a different expense structure. This particular mutual fund has two classes of shares, A and B. The time horizon associated with the investor's objective in purchasing TRIEF is 3 years. She expects equity investments with risk characteristics similar to TRIEF to earn 6 percent per year. Class A shares have a front-end load of 2%, no back-end load and an annual expense of 1.5%. Class B shares have no front-end load and an annual expense of 1.25%. The back-end load for Class B shares is 5% in the first year and declines by 1% each year thereafter. Which class of shares should the investor choose?

Answer rating: 100% (QA)

Answer Step 1 Investment funds and concerned expenses Investment funds refer to the combination of s... View the full answer