Purchase MF Shares

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Purchasing Mutual Fund Shares

When investing in a mutual fund, you can generally choose from three classes of shares: Class A, Class B and Class C. You may choose one based on a few factors: the amount you plan to invest, the intended holding period, and what type of sales charge you prefer.

You may select the appropriate class of shares based on how the sales charge may affect your asset. Each class of share has a different sales charge structure based on an intended holding period.

Most Common Classes of Shares

CLASS A SHARES have a front-end load, which means that the sales charge is paid at purchase. This amount is added to the net asset value (NAV), which is the total value of the fund's portfolio less liabilities; it is calculated daily. The sum of the NAV and the sales charge is referred to as the public offering price (POP).

CLASS B SHARES have a back-end load, which means that the charge is paid when shares are sold. These charges are also referred to as contingent deferred sales charges (CDSCs). Back-end fees percentage is highest in the first year and decreases yearly until the specified holding period ends, at which time it drops to zero. This class of shares is purchased at NAV.

CLASS C SHARES charge distribution and service fees directly to shareholders. The sales charge is paid from the assets. Over time these fees will increase the cost of your investment, which means that the sales charge is highest in this class of shares. Like Class B shares, Class C shares do not incur an initial sales charge. But, unlike Class B shares, which have a declining Contingent Deferred Sales Charge (CDSC), the CDSC for the Class C shares is typically 1% if shares are sold within one year after they are purchased.

Are You Ready to Invest in a Mutual Fund?
Before investing in a mutual fund, you should think about how much investment risk you are comfortable with. While your fund can potentially grow, it can also lose value. This is because the securities in the fund, typically stocks and/or bonds, will fluctuate in value. Furthermore, mutual funds are not guaranteed investments.

When deciding to invest in mutual funds or any investment, you should determine your investment objectives. For example, you may be planning to buy a house, send your children to college, or finance your retirement. Your objectives may change as you age or as your income changes.

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Important Notice about Purchasing an Annuity From Us

To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who purchases certain annuity products. What this means for you: When you purchase certain annuity products from us, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may ask to see your driver's license or other identifying documents.

Securities and investment advisory services are offered by VALIC Financial Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

VALIC represents The Variable Annuity Life Insurance Company and its subsidiaries, VALIC Financial Advisors, Inc. and VALIC Retirement Services Company.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.