The meaning of class

graemev2

Aside from the obvious British preoccupation, what does "class" mean, WRT a fund. Specifically:

FIDELITY BLACKROCK UK EQUITY INDEX FUND - CLASS 1

I've tried searching the term, but it's so general it matches lots of stuff .... I'm tending to think it relates to size?

Sorry if this is a an oft asked question (feel free to tell me to RTFM, but please give a link to the FM)

dunstonh

Funds have multiple share classes. Often to cover different product versions or different distribution channels.

The main difference in share classes is cost. Gross returns would be the same.

Albermarle

I was wondering about this with some Legal & General funds I have so did some quick research .
R Class means 'Retail' The charges are higher but they allow small lump sums and small regular payments . At the other end were I class- Investment class- significantly lower charges but minimum investment £1 Million . As Dunston said Gross returns are the same but net returns are a little better for the I class due to the lower charges.
I understand different fund managers use different letters and numbers for the classes so can be a bit opaque.

greenglide

And for many (most?) funds there are different classes for Accumulation and Income classes, depending on whether dividends are paid out or invested within the fund.