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Mutual funds typically have multiple share classes, each with different load structures and expense factors. Many multiclass mutual funds offer both a Class B and Class A option.

Class B funds usually have a back-end load known as CDSC (contingent deferred sales charge). This fee is charged if the investor sells shares within a certain period of time. Conversely, a Class A fund usually has a front-end load and a lower annual expense.

Some, but not all, class B funds convert to another class (typically the Class A but this is not required) of the same fund. This is usually done at a point when the CDSC is no longer in force.