Canadian Mutual Fund Filter: Funds Ending in Class

July 7, 2009 3:42 PM

When a Canadian mutual fund ends in the word class, eg the AGF Canadian Stock Class, how is that fund different to ones that end in fund, such as the AGF Canadian Stock Fund? Are they different funds? Acuity Short Term Income Class is an example of a "class" fund where there isn't also a "fund" fund offered.
posted by jules1651 to work & money (1 comment total)

"Class" means that, legally, it is a slice of a bigger fund. This means you can switch from one "class" fund to another "class" fund without it being a taxable event. You would incur some tax treatment with the selling of a normal mutual fund. See here.

Please note that Canada has the highest mutual fund fees in the world and I would encourage you to explore other options before investing in a Canadian mutual fund.
posted by milkrate at 4:00 PM on July 7