The Department of Labor’s fiduciary rule will spur mutual funds to launch more than 3,500 shares of a new class of low-fee offerings for IRA investors, according to a study.
Maximum front-end loads for the most common type of share sold through a broker, Class A, cost an average of 4.85% of the investment, according to a Morningstar report. In contrast, new Class T shares will cost 2.5% or less, and another new class, so-called “clean” shares, would eliminate the fees entirely, the research firm found.
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