Time to Stop the Share-Class Madness
Confusing system gets worse instead of better.
Six years ago, Morningstar issued a detailed report ridiculing the fund industry's alphabet-soup of share-class names. The roster included not just A, B, and C shares but also D, R, and Z shares--and it was all Greek to ordinary investors. We called upon the industry to do the obvious: Make the share-class system simple and understandable.
Since then, the fund industry has advanced quite far in some respects. For example, you can instantly learn tons of information about a fund simply by going to its Web site. But the industry's bewildering system of selling funds remains intact. In fact, the system is getting more confusing by the day.