You currently have $115,000 invested in your self-directed IRA. All $115,000 is invested in class A shares of mutual funds that are part of the American Funds family. You are going to call your broker next week and invest an additional $4,000 into class A shares of the SMALLCAP World Fund. The ticker symbol for class A shares of this mutual fund is SMCWX.

A. What is the percentage sales charge that you will be charged?

B. Are Class A shares of SMCWX that are acquired through reinvestment of dividends or capital gain distributions subject to an initial sales charge?

Answer rating: 100% (QA)

Ans A 575 sales charge will be incurred ... View the full answer