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What does “class” mean when included in the name of a mutual fund?

Mutual funds can be structured as trusts, or as corporations. In the case of corporate-class funds, the fund company establishes a single corporation with different classes of shares (eg. class A, class B, etc.). Hence the term "class" in the fund name.

Corporate-class funds -- also known as "switch" funds -- are becoming more popular with Canadian investors. The reason is simple: Corporate-class funds allow investors to switch between fund classes, within the same corporation, without triggering capital gains outside of a registered retirement savings plan. While the name "class" is popping up more frequently among the growing list of fund families, some firms such as CI Funds uses the term "sector." CI Funds was actually the pioneer of this type of fund product in 1987. As more and more Canadians become tax weary, other fund companies offering tax-saving products. Today, there are more than a dozen mutual fund companies selling corporate-class funds. Benefits of corporate-class funds Drawbacks Bookmarks
The fund prospectus: An invaluable source of information for management expense ratios, redemption fees, management style, etc.
www.globefund.com: Current, comprehensive information on mutual funds. www.morningstar.ca: A Canadian industry standard for comparative mutual fund information.