Class A share

There may be restrictions on any specific issue of class A shares in exchange for the benefits; for example, preferences with regard to dividends may be traded for reduced voting rights.

[3] Class A share is also a way of pricing sales charges (loads) on mutual funds in the United States.

In a class A share, the sales load is up front, typically at most 5.75% of the amount invested.

In contrast is the class B share that does not have an upfront charge, but instead has higher ongoing expenses in the form of a higher 12B-1 fee, and a contingent deferred sales charge that only applies if the investor redeems shares before a specified period.

The maximum A share sales load is decreased for larger investment amounts as a volume discount.