Chapter 12 - Mutual Funds Cnvestment Companies) Working with Fund Fees: An Example You have decided to invest $8,000 in an actively managed fund of the Prime Assets (PA) complex of funds. Your investment horizon is five to fifteen years and you must decide which PA fund to hold. Fund A has operating expenses of 1.5%, 1% 12b-1 charges, and back-end load fees of 6% at the start, which fall by 1% each full year (i.e., at the end of the first year the redemption fee is 5%). Fund B has a front-end load of 4%, 1.5% operating expenses, and 0.5% 12b-1 fees. Fund C has a front-end load of 2%, 1.5% operating expenses, and 1% 12b-1 charges. of 10% over the investment horizon. For investment horizons of five, ten and fif years, calculate the value of the investment at the end of the horizon and indicate which Fund you should choose at each horizon. All funds are expected to have a total return teen Fund A Fund B Fund C 5 years 10 years 15 years