What is an advisor class fund?

A Funds that have lower investment minimums and carry a front-load to pay the advisors’ sales commission. This charge comes right off the top of the investment. A shares are usually the most cost-effective for long term investors who are using a commission-based broker to transact.

What is Fidelity Advisor fund?

Fidelity Advisor Funds are broker sold and are on most brokerage platforms. They have different share classes with front and differed loads attached, and come with higher expense ratios.

Do Fidelity C shares convert to A shares?

Effective 6/21/21, Fidelity Advisor Class C shares convert to Class A shares after 8 years.

Are Fidelity Advisors free?

Is Fidelity Personal Advisor Services Right for You? Fidelity offers a completely free trading platform and zero-fee banking. DIY investors can access the brokerage’s comprehensive research and trade commission free.

Why are C shares better than A shares?

C shares involve an annual fee (instead of a typical sales load) and a higher expense ratio that will diminish returns over time. A shares have a lower expense ratio and impose a one-time, front-end load, which can be discounted for investors under certain circumstances.

Do Fidelity Advisors get commission?

Approximately 68% of eligible representatives receive this compensation, which typically ranges from 4% to 12% of total annual compensation, with an average of 10%.

What is a mutual fund T class?

T shares are a relatively new class of lower-cost mutual fund shares, meant to provide less expensive access to fund management for investors by imposing lower maximum sales loads paid to brokers or advisors.

How do Fidelity Advisors make money?

Fidelity makes money by charging its clients fees for the management of accounts and other services. Despite being one of the largest no-commission brokers, Fidelity doesn’t use the payment-for-order flow model used by so many of its peers like Charles Schwab, TD Ameritrade, and Robinhood.