Investor Shares

AAA

DEFINITION of 'Investor Shares'

Mutual fund shares purchased by individual investors as opposed to institutional shareholders. In general, the amount invested in the fund is what distinguishes investors from institutional shareholders. In many cases, a fund will have a minimum investment that must be made to qualify as an institutional shareholder.

INVESTOPEDIA EXPLAINS 'Investor Shares'

For example, Vanguard has a shareholder category called Admiral Shares, which requires a minimal investment level of $100,000 in a fund. At this level, a fund shareholder will benefit from a slightly lower expense ratio as well as certain service benefits.

If a fund carries a load, it will apply to investor shares, whereas institutional shareholders will generally have this fee reduced or waived completely because of the size of their investment.

RELATED TERMS
  1. Institutional Shares

    A class of mutual fund shares available for sale to investing ...
  2. Z-Share

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

    A fee (sales charge or load) that investors pay when selling ...
  4. Commission

    A service charge assessed by a broker or investment advisor in ...
  5. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  6. Front-End Load

    A commission or sales charge applied at the time of the initial ...
Related Articles
  1. Options & Futures

    A Brief History Of The Hedge Fund

    Find out how this U.S.-born investment innovation became a $1-trillion industry that's both praised and vilified by the media.
  2. Retirement

    A Brief History Of The Mutual Fund

    This popular investment vehicle has seen its share of ups and downs, successes and scandals. Read all about it!
  3. 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.
  4. Mutual Funds & ETFs

    Are there publicly traded hedge funds?

    See why a privately arranged hedge fund may decide to take its fund public, and how the investing public at large can gain exposure to hedge fund value.
  5. Brokers

    Is there a downside to having a high liquidity ratio?

    Find out why it might be disadvantageous for a company to have liquidity ratios that are too high, and learn how to find a healthy liquidity range for a firm.
  6. Active Trading Fundamentals

    With an ex-dividend, why does the dividend go to the seller rather than the buyer?

    Find out why ex-dividend payments are sent to the seller of a stock rather than the purchaser and how ex-dividends can create trading opportunities.
  7. Mutual Funds & ETFs

    What does a hedge fund do?

    Read how hedge funds differ from other investment vehicles and how their investment strategies make them unique and potentially risky.
  8. Retirement

    What is an equity-indexed annuity?

    Understand what an equity-indexed annuity is, its advantages and disadvantages, and how it differs from other annuity investments.
  9. Mutual Funds & ETFs

    Should I invest in ETFs or index funds?

    Learn advantages to investing in exchange-traded funds, or ETFs, and index funds, and decide whether to include them in your investment portfolio.
  10. Fundamental Analysis

    What is the difference between revenue and profit?

    Understand the difference between revenue and profit, two key concepts in business accounting, including where each can be found on an income statement.

You May Also Like

Hot Definitions
  1. Scarcity

    The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, ...
  2. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The ...
  3. Christmas Tree

    An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at ...
  4. Christmas Club

    A short-term savings account that usually pays out the full account balance to its account holders once each year, right ...
  5. Boston Snow Indicator

    A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For ...
  6. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
Trading Center