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    • graemev2
    • By graemev2 9th Nov 18, 3:34 PM
    • 8Posts
    • 0Thanks
    The meaning of class
    • #1
    • 9th Nov 18, 3:34 PM
    The meaning of class 9th Nov 18 at 3:34 PM
    Aside from the obvious British preoccupation, what does "class" mean, WRT a fund. Specifically:


    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)
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    • dunstonh
    • By dunstonh 9th Nov 18, 4:04 PM
    • 97,532 Posts
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    • #2
    • 9th Nov 18, 4:04 PM
    • #2
    • 9th Nov 18, 4:04 PM
    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.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Albermarle
    • By Albermarle 9th Nov 18, 5:18 PM
    • 486 Posts
    • 264 Thanks
    • #3
    • 9th Nov 18, 5:18 PM
    • #3
    • 9th Nov 18, 5:18 PM
    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
    • By greenglide 9th Nov 18, 7:08 PM
    • 3,266 Posts
    • 2,134 Thanks
    • #4
    • 9th Nov 18, 7:08 PM
    • #4
    • 9th Nov 18, 7:08 PM
    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.
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