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. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  2. No-Load Fund

    A mutual fund in which shares are sold without a commission or ...
  3. Service Shares

    Mutual fund units that charge service fees to their shareholders. ...
  4. Institutional Shares

    A class of mutual fund shares available for sale to investing ...
  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. A Brief History Of The Hedge Fund
    Options & Futures

    A Brief History Of The Hedge Fund

  2. A Brief History Of The Mutual Fund
    Retirement

    A Brief History Of The Mutual Fund

  3. The ABCs Of Mutual Fund Classes
    Retirement

    The ABCs Of Mutual Fund Classes

  4. Will ETFs Eventually Replace Mutual ...
    Mutual Funds & ETFs

    Will ETFs Eventually Replace Mutual ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center