To help ensure you are able to take advantage of Class A share sales charge discounts to reduce the cost of owning fund shares, American Funds does not allow purchases of Class C shares when Class A shares might be a more cost–effective option. Class C share investors will benefit from reduced sales charges available on Class A shares for investments of $500,000 or more, potentially making Class A shares a more cost–effective alternative for them.
Investors in Class 529-C shares may invest into their CollegeAmerica account until the balance (including any earnings) reach $500,000.
Investors with aggregated American Funds accounts of $1 million or more, however, can purchase Class A and 529-A shares at net asset value and are ineligible for Class C and 529-C purchases. For funds available at net asset value based on aggregated assets of $500,000 or more, investors should purchase Class A or 529-A shares. Since the sales charge for Class A/529-A declines as investment purchases and/or account value increases, Class A/529-A shares become the better option for larger investments held over a longer period.