B-Share

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Dictionary Says

Definition of 'B-Share'

A class in a family of multi-class mutual funds. This class is characterized by a back-end load structure that is paid only when the fund is sold.
Investopedia Says

Investopedia explains 'B-Share'

Class B funds will generally have higher management expense ratios compared to front load funds within the same family. Fund companies attempt to increase their profits while the rear load is effective because it will normally decrease in value with time until no load is charged whatsoever.

Not all fund companies follow this class structure, but it is the prominent method of distinction.

Related Definitions

  • A-Share

    In a family of multi-class mutual funds, this is the class that is usually characterized by a loaded fee structure. Class A mutual fund units will commonly have a front- or rear-end ...
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  • Back-End Load

    A fee (sales charge or load) that investors pay when selling mutual fund shares within a specified number of years, usually five to 10 years. The fee amounts to a percentage of the value ...
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  • C-Share

    In a family of multi-class mutual funds, the class that has a constant load structure throughout the life of the fund.
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    • Expense Ratio

      A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual calculation, where a fund's operating expenses are divided by ...
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    • Front-End Load

      A commission or sales charge applied at the time of the initial purchase for an investment, usually mutual funds and insurance policies. It is deducted from the investment amount and, as ...
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    • Load Fund

      A mutual fund that comes with a sales charge or commission. The fund investor pays the load, which goes to compensate a sales intermediary (broker, financial planner, investment advisor, ...
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    • Mutual Fund

      An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and ...
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    • Net Asset Value - NAV

      A mutual fund's price per share or exchange-traded fund's (ETF) per-share value. In both cases, the per-share dollar amount of the fund is calculated by dividing the total value of all ...
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    • Reclassification

      The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not ...
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    • Z-Share

      A class of mutual fund shares that employees of the fund's management company are allowed to own. Employees may have the option of buying Z-shares or receiving them as a part of ...
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