B-Share

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.

BREAKING DOWN '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. C-Share

    A class of mutual fund with a level load. Class C shares don't ...
  2. Back-End Load

    A fee (sales charge or load) that investors pay when selling ...
  3. A-Share

    In a family of multi-class mutual funds, this is the class that ...
  4. Expense Ratio

    A measure of what it costs an investment company to operate a ...
  5. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
  6. Front-End Load

    A commission or sales charge applied at the time of the initial ...
Related Articles
  1. Mutual Funds & ETFs

    4 Alternatives To Traditional Mutual Funds

    A rich offering of attractive alternatives have the open-ended mutual fund facing obsolescence.
  2. Retirement

    The ABCs Of Mutual Fund Classes

    Do you understand how the various types of shares differ? We give you the pros and cons of each.
  3. Mutual Funds & ETFs

    Mutual Fund Basics Tutorial

    Learn about the basics - and the pitfalls - of investing in mutual funds.
  4. Mutual Funds & ETFs

    3 Expensive Mid-Cap Mutual Funds Worth Your While (ETAGX, VMACX)

    Discover three mutual funds with above-average expense ratios and consistent outperformance of the S&P 500 Index and the Russell Mid-Cap Index.
  5. Mutual Funds & ETFs

    JANBX: Overview of Janus Balanced Fund

    Discover a balanced mutual fund with a solid performance history, weathering down markets and routinely outperforming equity indexes in up markets.
  6. Mutual Funds & ETFs

    Trends in Capital Flows: U.S. Equities

    Analyze asset flow data for U.S. equity mutual funds and ETFs from 2014 and 2015 to identify changes in demand, investor sentiment and outlook.
  7. Mutual Funds & ETFs

    Large Cap Mutual Funds: 5 Long-Term Portfolio Managers to Consider (FDGRX, TRBCX)

    Discover five mutual fund managers who have extensive investment experience, managing portfolios that have routinely outperformed their benchmarks.
  8. Mutual Funds & ETFs

    FREEX: A Performance Case Study

    Learn about the Franklin Real Estate Securities Fund, including a historical analysis per quarter of the fund's performance over the past decade.
  9. Mutual Funds & ETFs

    3 Expensive Global Bond Mutual Funds Worth Your While (FTIBX, AIBRX)

    Find out why these three funds with high management expense ratios may still be worth your consideration for global bond funds investing.
  10. Mutual Funds & ETFs

    5 Utilities Mutual Funds to Avoid in 2016 (FLRUX, MMUBX)

    Explore five utilities sector mutual funds that investors should avoid in 2016 due to below-average Sharpe ratios and high expense ratios.
RELATED FAQS
  1. Is a money market account the same as a money market fund?

    Discover the differences between money market accounts and money market funds, including minimum balance requirements, withdrawal ... Read Answer >>
  2. What typically comprises a money market fund?

    Learn about the basic types of money market funds and discover how they are characterized by the types of investments that ... Read Answer >>
  3. Do financial advisors get paid by mutual funds?

    Learn how mutual funds reimburse financial advisors for recommending that their clients invest in funds and stay invested ... Read Answer >>
  4. What advantages do exchange-traded funds have over mutual funds?

    Exchange-Traded Funds (ETFs) are growing ever more popular, as they were created to combine the best characteristics of both ... Read Answer >>
  5. When do you invest in a commingled fund vs. separate account?

    Explore situations when a commingled fund is a more suitable investment vehicle than a separate account. Read Answer >>
  6. What are the advantages and disadvantages of mutual funds?

    Mutual funds are currently the most popular investment vehicle and provide several advantages to investors, including the ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center