Y Shares

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Offline Md. Al-Amin

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Y Shares
« on: February 27, 2014, 12:36:00 PM »
Y Shares
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What it is:

Y shares are simply shares that can be bought in bulk. Usually, they do not come with additional rights or privileges; they exist to encourage institutions to make large investments in the funds that offer them. Individuals aren't always shut out of buying Y shares -- often, they just have to be able to afford the minimum investment.

How it works/Example:

For example, let's say that the XYZ Mutual Fund invests in a variety of defensive stocks. Average investors can buy shares of the fund but must pay a front-end load. Institutional investors (such as pension funds and insurance companies) can buy Y shares of the XYZ Mutual Fund, which do not involve a sales load but require minimum investments of, say, $300,000.

Y shares often have a "Y" at the end of their fund symbols.

Why it Matters:

Also called institutional shares, Y shares are mutual fund shares that are available for sale only to institutions.

Offline munna99185

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Re: Y Shares
« Reply #1 on: February 28, 2014, 09:03:09 AM »
Y-share: A class of mutual fund shares that often has a high minimum investment, such as $500,000 per lot, and the added benefit of waived or limited load charges and fees. Due to the high minimum investment required, Y-shares are often only accessible by large institutional investors.
Many Y-class shares often waive the annual 12b-1 fees that are customarily charged for marketing and distribution purposes. The fee-free savings from buying Y-shares are substantial, considering that the amount charged from 12b-1 fees alone is 0.25-1.00% of the fund's assets and that at least $500,000 worth of securities are being purchased. [Source: http://www.investopedia.com]

Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University