Which statement about Open-End Funds is true?

• A. They may have front-end loads, back-end loads, and 12b-1 asset-based fees.
• B. They never charge any sales charges.
• C. They only charge management fees with no sales charges.
• D. They are not redeemable by investors.

Answer: (A)

Open-end funds are redeemable shares whose price is the daily net asset value. They can carry different types of charges, including front-end loads (charged at purchase), back-end loads or deferred sales charges (charged when you sell), and 12b-1 asset-based fees (ongoing annual charges). Because these funds can impose any combination of these sales-related fees, the statement describing them as possibly having front-end loads, back-end loads, and 12b-1 fees is accurate. The other options don’t fit because open-end funds can indeed charge sales charges, some funds do not solely rely on management fees, and they are redeemable by investors at NAV, not non-redeemable.