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 compensation or a reward package.


While Z-class shares would be sold at the current net asset value, firms may match the amount of shares purchased to act as a bonus for employees. For example, an entry-level accountant working for a mutual fund firm may purchase 100 shares of the firm's total market mutual fund; the firm may then give the accountant an additional 100 shares.

Employees gain the advantage of receiving an asset that will benefit their own retirement-planning purposes (perhaps with the prospect of receiving bonus shares), whereas employers benefit from possibly fostering better long-term loyalty from the employee.

  1. C-Share

    A class of mutual fund with a level load. Class C shares don't ...
  2. Net Asset Value - NAV

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

    Mutual fund shares purchased by individual investors as opposed ...
  4. B-Share

    A class in a family of multi-class mutual funds. This class is ...
  5. A-Share

    In a family of multi-class mutual funds, this is the class that ...
  6. Mutual Fund

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