Indicates the share class for open-end funds. Shares of the same fund that offer different shareholder rights and obligations, such as different fee and load charges. Common share classes are A (front-end load), B (deferred fees), C (no sales charge and a relatively high annual 12b-1 fee, such as 1.00%). Multi-class funds hold the same investment portfolio for all classes, and differ only in their surrounding fee structure.
Funds that have lower investment minimums and carry a front-load to pay the advisors' sales commission. Front-load discounts are usually available if the investor meets a higher minimum initial purchase. Also known as 1, I or One. Typically, the maximum front load is between 4% and 5.75%, the maximum deferred load is zero, the maximum 12b-1 fee is between 0 and 50 bps and the investment minimum is $2,500 or less.
Funds without front- or back-end sales charges. Purchased directly by investors or through advisors. Typically, the maximum front load is 0%, the maximum deferred load is 0%, the maximum 12b-1 fee is between 0 and 100 bps, and the investment minimum is $2,500 or less.
Funds typically purchased through advisors, but generally requiring a higher minimum investment. Known as Adv Advisor. Typically, the maximum front load is 0%, the maximum deferred load is 0%, the maximum 12b-1 fee is between 0 and 50 bps, and the investment minimum is $2,500 or less.
Funds that have lower investment minimums and carry a deferred-load sales charge, also called a surrender charge. The sales charge is imposed if shares are redeemed before specified time periods, typically within five years. The sales charge decreases with the time invested such that the surrender charge is higher in year one than it is in year five. Also know as 2, II, or Two. Typically, the maximum front load is 0%, the maximum deferred load is between 4% and 5%, the maximum 12b-1 fee is between 75 and 100 bps, and the investment minimum is $2,500 or less.
Funds that have lower investment minimums and carry a level-load structure. This sales charge is typically a recurring fee of 1% that is used on an annual basis to compensate advisors. Investment minimums for C-shares tend to be lower than for D-shares. Also know as 3, III, or Three. Typically, the maximum front load is 0% and occasionally 1%, the maximum deferred load is 1% and occasionally 0%, the maximum 12b-1 fees is between 75 and 100 bps, and the investment minimum is $2,500 or less.
Funds that have lower investment minimums and carry a level-load structure. This sales charge is typically a recurring fee of 1% that is used on an annual basis to compensate advisors. Investment minimums for C-shares tend to be lower than for D-shares. Typically, the maximum front load is 0%, the maximum deferred load is 0% and occasionally 1%, the maximum 12b-1 fee is 0% and occasionally between 1 and 50 bps, and the investment minimum is $2,000 or more.
Funds typically purchased by large institutional buyers, such as pension plans. Also know as Y, I, Z, X, Inst, Instl. Typically, the maximum front load is 0%, the maximum deferred load is 0%, the maximum 12b-1 fee is 0%, and the investment minimum is $25,000 or more.
Investor share classes can be purchased by individual investors, so there is usually no front or deferred load charged. However, investment minimums may be slightly higher. Also known as Investor or Investment. Typically, the maximum front load is 0%, the maximum deferred load is 0%, the maximum 12b-1 fee is sometimes 0% and sometimes between 1bp and 25 bps, and the investment minimum is $10,000 or less.
Morningstar supplies certain statistics for load-waived A shares.
Typically, M shares carry lower front-end loads than A shares and are available to investors with larger initial investments. Typically, the maximum front load is either 0% or between 1% and 3.5%, the maximum deferred load is 0%, the maximum 12b-1 fee is sometimes 0% and sometimes between 25 bps and 100 bps, and the investment minimum is $50,000 or more.
Typically, N shares are available to investors with larger initial investments. Many also charge a 12b-1 fee. Typically, the maximum front load is 0%, the maximum deferred load is 0%, the maximum 12b-1 fee is between 25 and 50 bps, and the investment minimum is $50,000 or more.
Funds not elsewhere classified. This category contains fewer than 5% of all U.S. funds. Also know as most other share class letters. The maximum front load varies, the maximum deferred load varies, the maximum 12b-1 fee varies, and the investment minimum varies.
Funds available through retirement plans. Purchased by retirement plan participants, usually without any sales loads. Also know as Ret, R, K, and J. Typically, the maximum front load is 0%, the maximum deferred load is 0%, the maximum 12b-1 fee is between 25 and 50 bps, and the investment minimum varies.
S share classes are similar to no-load funds in that there is usually no front or deferred load charged. However, investment minimums may be slightly higher. Typically, the maximum front load is 0%, the maximum deferred load is 0%, the maximum 12b-1 fee is 0%, and the investment minimum is $2,000 or more.
Typically, T shares carry lower front-end loads than A shares and are available to investors with larger initial investments. Typically, the maximum front load is 0% but sometimes between 3% and 4.75%, the maximum deferred load is 0%, the maximum 12b-1 fee is sometimes 0% and sometimes between 25 bps and 50 bps, and the investment minimum is $2,000 or more.