--- title: "Share Class ABCs: Choose Wisely" description: When choosing mutual funds for your plan’s investment menu, understanding the different share classes is key. It can be confusing; however, we are here to help! image: https://www.bjorkgroup.com/hubfs/Bjork%20Group_Q1%202019_Headline%20Image_Blog%20Article%203.png --- [BjorkGroup ![bjork group](https://www.bjorkgroup.com/hubfs/images/logo.png)](https://www.bjorkgroup.com/) ![bjork group](https://www.bjorkgroup.com/hs-fs/hubfs/images/print-logo.jpg?width=285&height=37&name=print-logo.jpg) Toggle navigation - [Benefits Consulting](https://www.bjorkgroup.com/benefits-consulting-services) - [Health & Wellness](https://www.bjorkgroup.com/benefits-consulting-services/health-and-wellness) - [HR Administration](https://www.bjorkgroup.com/benefits-consulting-services/hr-administration) - [Employee Onboarding](https://www.bjorkgroup.com/benefits-consulting-services/employee-onboarding) - [Regulatory & Compliance Solutions](https://www.bjorkgroup.com/benefits-consulting-services/regulatory_and_compliance_solutions) - [Retirement](https://www.bjorkgroup.com/benefits-consulting-services/retirement) - [Employee Communication & Enrollment](https://www.bjorkgroup.com/benefits-consulting-services/employee-communication-and-enrollment) - [Payroll](https://www.bjorkgroup.com/benefits-consulting-services/payroll) - [Cost Benchmarking & Optimization](https://www.bjorkgroup.com/benefits-consulting-services/cost_benchmarking_and_optimization) - [Technology](https://www.bjorkgroup.com/technology) - [Benefits Administration Systems](https://www.bjorkgroup.com/technology/benefits-administration-systems) - [HR Data Analytics](https://www.bjorkgroup.com/technology/hr-data-analytics) - [Private Insurance Exchange Solutions](https://www.bjorkgroup.com/technology/private-insurance-exchange-solutions) - [By Company Size](https://www.bjorkgroup.com/solutions-by-company-size) - [Small (2–99)](https://www.bjorkgroup.com/solutions-by-company-size/small-two-ninety-nine) - [Medium (100–1,000)](https://www.bjorkgroup.com/solutions-by-company-size/medium-one-hundred-one-thousand) - [Large (1,000+)](https://www.bjorkgroup.com/solutions-by-company-size/large-one-thousand-plus) - [Resources](https://www.bjorkgroup.com/resources) - [Case Studies](https://www.bjorkgroup.com/case-studies) - [White Papers](https://www.bjorkgroup.com/white-papers) - [About Us](https://www.bjorkgroup.com/about-us) - [Our History](https://www.bjorkgroup.com/about-us/our-history) - [Our Values](https://www.bjorkgroup.com/about-us/our-values) - [Blog](https://www.bjorkgroup.com/blog) - [Contact Us](https://www.bjorkgroup.com/contact-us) ![img description](https://www.bjorkgroup.com/hubfs/images/banner-img03.jpg) # Blog - Blog ## Share Class ABCs: Choose Wisely - Bjork Group - February 11, 2019   ![Bjork Group\_Q1 2019\_Headline Image\_Blog Article 3](https://www.bjorkgroup.com/hubfs/Bjork%20Group_Q1%202019_Headline%20Image_Blog%20Article%203.png)   Choosing mutual funds for your retirement plan’s investment lineup can feel like wading through a sea of alphabet soup. Fund companies typically offer multiple share classes, each sporting its own unique letter. A shares, C shares, I shares, R shares — what does it all mean? Luckily, you don’t have to be a mutual fund expert to understand the different share classes. Here’s a brief primer to help you understand the basics. **ABCs of Fees** Before diving into the share class alphabet soup, first, a brief word about fees. Each share class of a mutual fund owns the same underlying securities (stocks, bonds, etc.); the only difference is the cost. These come in two basic varieties: expense ratios and sales “loads.” Expense ratios are the percentage of a fund’s assets used to cover administrative, marketing and distribution (12b-1 fees), and all other costs. Typically paid by participants, these fees are calculated annually as a percentage of an investor’s assets. For example, a participant would pay $150 for a $10,000 balance invested in a share class with a 1.5% expense ratio. Additionally, certain share classes charge significant sales loads. However, these are typically waived for mutual funds purchased through 401k plans.[\[1\]](https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely#_ftn1) If this is the case, neither the plan nor its participants pay these fees. **How to Compare Shares** Now, let’s talk share classes. Here’s a primer of the most common share classes: **A shares:** Charge a front-end load for sales commissions for financial planners, brokers and investment advisors. It’s paid when shares are purchased and is calculated as a percentage of the original investment. For example, if the opening balance is $5,000 with a 5% front-end load, the fee is $250, making the invested balance $4,750. Within retirement plans, these costs are generally waived in retirement plans. **C shares:** May be “no-load” funds, or those that carry a back-end load, in which an investor may pay a sales charge — typically 1% — if shares are sold within a specific period of time (generally less than a year). However, within retirement plans, a back-end charge is typically waived. Class C shares also carry higher expense ratios than A shares. **I shares:** Known as “institutional” share classes, I shares typically carry much lower fees than A or C shares. While A and C shares are available to most plans of all sizes, they are mostly accessible to larger plans.1 **R shares:** Specifically designed for retirement plans, R shares range from R-1 to R-6. R shares typically don’t have front- or back-end loads; however, they may potentially carry a revenue-sharing component. As such, expense ratios vary: those with 12b-1 marketing and distribution fees may range from .25% to .1%.[\[2\]](https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely#_ftn2) It is worth noting that R-6 shares generally have no 12b-1 or servicing fees, although they are typically only available to plans with assets of $10 million to $250 million.[\[3\]](https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely#_ftn3) **CITs:** Collective Investment Trusts (CITs) are the new kids on the investment block. They are similar to mutual funds; however, there are major differences. CITs are not registered; therefore, their administrative expenses are typically lower than those of mutual funds because they are not subject to the many regulations that mutual funds must abide by. Mutual funds are open to the public, whereas CITs are not, and are designed to be part of a specific 401(k) investment strategy. Keep in mind that CITs do not have traditional Ticker Symbols, so while they might have lower costs, there is also a lack of investment transparency. As a plan fiduciary, it is a best practice to truly understand the investment structure, weigh the potential cost savings, and compare the benefits with implementing CITs.[\[4\]](https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely#_ftn4) What’s more, new share classes — T and “clean” shares — have emerged in response to changing regulations. These share classes are designed to promote greater fee transparency and level the playing field on commissions for financial professionals, while enabling plan sponsors to distinguish investment costs from plan costs. The bottom line: when selecting and reviewing mutual funds for a plan’s investment menu, it’s important for sponsors and fiduciaries to understand the different share classes and their related fees, as well as how they impact plan costs and participants’ ability to optimize their retirement savings. As you review the many different options available out there, remember: “you must choose, but choose wisely.”[\[5\]](https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely#_ftn5)   [\[1\]](https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely#_ftnref1) [Simon, Javier. Planadviser. “Understanding Share Classes in DC Plan Funds.” May 2017.](https://www.planadviser.com/understanding-share-classes-in-dc-plan-funds/) [\[2\]](https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely#_ftnref2) [Investopedia. “What is a 12B-1 Fee?”](https://www.investopedia.com/terms/1/12b-1fees.asp) Aug 2016. [\[3\]](https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely#_ftnref3) [Simon, Javier. Planadviser. “Understanding Share Classes in DC Plan Funds.” May 2017.](https://www.planadviser.com/understanding-share-classes-in-dc-plan-funds/) [\[4\]](https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely#_ftnref4) Morningstar Office. “What is a Collective Investment Trust?” November 2018. [\[5\]](https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely#_ftnref5) [Boam, Jeffrey; Kaufman, Philip; Lucas, George & Meyjes, Menno. “Indiana Jones and the Last Crusade.” May 1989.](https://www.imdb.com/title/tt0097576/) ![Image](https://www.bjorkgroup.com/hubfs/images/dummy-img.jpg) Share THIS POST - [mailto:?body=Check%20out%20this%20blog%20post:%20https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely](mailto:?body=Check%20out%20this%20blog%20post:%20https://www.bjorkgroup.com/blog/share-class-abcs-choose-wisely) - - - - ### Categories ### Categories - [Administration (58)](https://www.bjorkgroup.com/blog/topic/administration) - [Retirement Savings (55)](https://www.bjorkgroup.com/blog/topic/retirement-savings) - [Employee Benefits (48)](https://www.bjorkgroup.com/blog/topic/employee-benefits) - [Wellness (37)](https://www.bjorkgroup.com/blog/topic/wellness) - [Retirement Plan Insights (33)](https://www.bjorkgroup.com/blog/topic/retirement-plan-insights) - [Employer News and Information (26)](https://www.bjorkgroup.com/blog/topic/employer-news-and-information) - [HR Training and Support (21)](https://www.bjorkgroup.com/blog/topic/hr-training-and-support) - [Workplace Productivity (12)](https://www.bjorkgroup.com/blog/topic/workplace-productivity) - [Technology (9)](https://www.bjorkgroup.com/blog/topic/technology) - [Cost of Healthcare (5)](https://www.bjorkgroup.com/blog/topic/cost-of-healthcare) - [Analytics (3)](https://www.bjorkgroup.com/blog/topic/analytics) - [Workplace Compliance Safety and ACA Training (3)](https://www.bjorkgroup.com/blog/topic/workplace-compliance-safety-and-aca-training) - [Charity (1)](https://www.bjorkgroup.com/blog/topic/charity) - [Giving (1)](https://www.bjorkgroup.com/blog/topic/giving) - [Mobile (1)](https://www.bjorkgroup.com/blog/topic/mobile) - [Music (1)](https://www.bjorkgroup.com/blog/topic/music) - [Telehealth (1)](https://www.bjorkgroup.com/blog/topic/telehealth) - [Voluntary Benefits (1)](https://www.bjorkgroup.com/blog/topic/voluntary-benefits) see all - ### Recent Posts ### Recent Posts - ### Archive ### Archive - [August 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/08) - [July 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/07) - [June 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/06) - [April 2026 (2)](https://www.bjorkgroup.com/blog/archive/2026/04) - [March 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/03) - [February 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/02) - [January 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/01) - [December 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/12) - [November 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/11) - [October 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/10) - [August 2025 (2)](https://www.bjorkgroup.com/blog/archive/2025/08) - [July 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/07) - [May 2025 (2)](https://www.bjorkgroup.com/blog/archive/2025/05) - [April 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/04) - [February 2025 (2)](https://www.bjorkgroup.com/blog/archive/2025/02) - [January 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/01) - [November 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/11) - [October 2024 (2)](https://www.bjorkgroup.com/blog/archive/2024/10) - [September 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/09) - [August 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/08) - [July 2024 (2)](https://www.bjorkgroup.com/blog/archive/2024/07) - [June 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/06) - [May 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/05) - [April 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/04) - [March 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/03) - [February 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/02) - [January 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/01) - [November 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/11) - [October 2023 (2)](https://www.bjorkgroup.com/blog/archive/2023/10) - [September 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/09) - [August 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/08) - [July 2023 (2)](https://www.bjorkgroup.com/blog/archive/2023/07) - [June 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/06) - [May 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/05) - [April 2023 (2)](https://www.bjorkgroup.com/blog/archive/2023/04) - [March 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/03) - [February 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/02) - [January 2023 (2)](https://www.bjorkgroup.com/blog/archive/2023/01) - [December 2022 (1)](https://www.bjorkgroup.com/blog/archive/2022/12) - [November 2022 (1)](https://www.bjorkgroup.com/blog/archive/2022/11) - [October 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/10) - [September 2022 (1)](https://www.bjorkgroup.com/blog/archive/2022/09) - [August 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/08) - [July 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/07) - [June 2022 (1)](https://www.bjorkgroup.com/blog/archive/2022/06) - [May 2022 (3)](https://www.bjorkgroup.com/blog/archive/2022/05) - [April 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/04) - [March 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/03) - [February 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/02) - [January 2022 (3)](https://www.bjorkgroup.com/blog/archive/2022/01) - [December 2021 (1)](https://www.bjorkgroup.com/blog/archive/2021/12) - [November 2021 (4)](https://www.bjorkgroup.com/blog/archive/2021/11) - [October 2021 (3)](https://www.bjorkgroup.com/blog/archive/2021/10) - [September 2021 (2)](https://www.bjorkgroup.com/blog/archive/2021/09) - [August 2021 (3)](https://www.bjorkgroup.com/blog/archive/2021/08) - [July 2021 (2)](https://www.bjorkgroup.com/blog/archive/2021/07) - [June 2021 (2)](https://www.bjorkgroup.com/blog/archive/2021/06) - [May 2021 (3)](https://www.bjorkgroup.com/blog/archive/2021/05) - [April 2021 (2)](https://www.bjorkgroup.com/blog/archive/2021/04) - [March 2021 (3)](https://www.bjorkgroup.com/blog/archive/2021/03) - [February 2021 (3)](https://www.bjorkgroup.com/blog/archive/2021/02) - [January 2021 (2)](https://www.bjorkgroup.com/blog/archive/2021/01) - [December 2020 (1)](https://www.bjorkgroup.com/blog/archive/2020/12) - [November 2020 (4)](https://www.bjorkgroup.com/blog/archive/2020/11) - [October 2020 (4)](https://www.bjorkgroup.com/blog/archive/2020/10) - [September 2020 (2)](https://www.bjorkgroup.com/blog/archive/2020/09) - [August 2020 (3)](https://www.bjorkgroup.com/blog/archive/2020/08) - [July 2020 (2)](https://www.bjorkgroup.com/blog/archive/2020/07) - [June 2020 (2)](https://www.bjorkgroup.com/blog/archive/2020/06) - [May 2020 (3)](https://www.bjorkgroup.com/blog/archive/2020/05) - [April 2020 (5)](https://www.bjorkgroup.com/blog/archive/2020/04) - [March 2020 (3)](https://www.bjorkgroup.com/blog/archive/2020/03) - [February 2020 (3)](https://www.bjorkgroup.com/blog/archive/2020/02) - [January 2020 (3)](https://www.bjorkgroup.com/blog/archive/2020/01) - [December 2019 (4)](https://www.bjorkgroup.com/blog/archive/2019/12) - [November 2019 (3)](https://www.bjorkgroup.com/blog/archive/2019/11) - [October 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/10) - [September 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/09) - [August 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/08) - [July 2019 (4)](https://www.bjorkgroup.com/blog/archive/2019/07) - [June 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/06) - [May 2019 (3)](https://www.bjorkgroup.com/blog/archive/2019/05) - [April 2019 (3)](https://www.bjorkgroup.com/blog/archive/2019/04) - [March 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/03) - [February 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/02) - [January 2019 (5)](https://www.bjorkgroup.com/blog/archive/2019/01) - [December 2018 (2)](https://www.bjorkgroup.com/blog/archive/2018/12) - [November 2018 (3)](https://www.bjorkgroup.com/blog/archive/2018/11) - [October 2018 (4)](https://www.bjorkgroup.com/blog/archive/2018/10) - [September 2018 (1)](https://www.bjorkgroup.com/blog/archive/2018/09) - [August 2018 (1)](https://www.bjorkgroup.com/blog/archive/2018/08) - [July 2018 (1)](https://www.bjorkgroup.com/blog/archive/2018/07) - [December 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/12) - [November 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/11) - [October 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/10) - [August 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/08) - [March 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/03) - [February 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/02) - [November 2016 (2)](https://www.bjorkgroup.com/blog/archive/2016/11) - [October 2016 (1)](https://www.bjorkgroup.com/blog/archive/2016/10) - [September 2016 (1)](https://www.bjorkgroup.com/blog/archive/2016/09) - [July 2016 (1)](https://www.bjorkgroup.com/blog/archive/2016/07) - [June 2016 (2)](https://www.bjorkgroup.com/blog/archive/2016/06) - [May 2016 (2)](https://www.bjorkgroup.com/blog/archive/2016/05) - [April 2016 (1)](https://www.bjorkgroup.com/blog/archive/2016/04) - [March 2016 (2)](https://www.bjorkgroup.com/blog/archive/2016/03) - [February 2016 (2)](https://www.bjorkgroup.com/blog/archive/2016/02) - [January 2016 (3)](https://www.bjorkgroup.com/blog/archive/2016/01) - [November 2015 (2)](https://www.bjorkgroup.com/blog/archive/2015/11) - [October 2015 (1)](https://www.bjorkgroup.com/blog/archive/2015/10) see all ![img descripion](https://www.bjorkgroup.com/hubfs/images/img18.png) # GET IN TOUCH #### Excellent customer service is something we pride ourselves on, so please do not hesitate to reach out with any questions you may have. [![Contact Us](https://no-cache.hubspot.com/cta/default/453572/2bb1c3e2-85c4-4743-8699-eee1b9187d65.png)](https://cta-redirect.hubspot.com/cta/redirect/453572/2bb1c3e2-85c4-4743-8699-eee1b9187d65) - [Benefits Consulting](https://www.bjorkgroup.com/benefits-consulting-services) - [Technology](https://www.bjorkgroup.com/technology) - [By Company Size](https://www.bjorkgroup.com/solutions-by-company-size) - [Resources](https://www.bjorkgroup.com/resources) - - - - [About Us](https://www.bjorkgroup.com/about-us) - [Blog](https://www.bjorkgroup.com/blog) - [Contact Us](https://www.bjorkgroup.com/contact-us) - [Join Our Team](https://www.bjorkgroup.com/contact-us) © 2015 [Bjork Group, Inc](https://www.bjorkgroup.com/). - All Rights Reserved - [Terms](https://www.bjorkgroup.com/terms) - [Privacy Policy](https://www.bjorkgroup.com/privacy-policy)