B-Share

AAA

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 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 TERMS
  1. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
  2. Net Asset Value - NAV

    A mutual fund's price per share or exchange-traded fund's (ETF) ...
  3. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  4. Reclassification

    The process of changing the class of mutual funds once certain ...
  5. Z-Share

    A class of mutual fund shares that employees of the fund's management ...
  6. Back-End Load

    A fee (sales charge or load) that investors pay when selling ...
Related Articles
  1. Mutual Funds & ETFs

    4 Alternatives To Traditional Mutual ...

  2. Retirement

    The ABCs Of Mutual Fund Classes

  3. Mutual Funds & ETFs

    Mutual Fund Basics Tutorial

  4. Trading Strategies

    What's the safest way to invest in high-yielding ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center