Many mutual funds offer different types of shares, known as classes (e.g., Class A shares, Class B shares, etc.). A mutual fund is an investment company that pools money from many investors and invests in securities, such as stocks and bonds, and other assets.  

All share classes of a mutual fund invest in the same pool of investments (called the investment portfolio), but typically they have different fees and expenses. Different share classes offer investors the ability to select a fee and expense structure that is most appropriate for their investment goals (including the time that they expect to remain invested in the fund). Over time, higher fees and expenses can significantly lower investment returns.

This means that owning a different class of the same fund typically will result in different investment returns. The effect of different fees on different mutual fund share classes becomes larger over time.

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