What are Z Shares?
The Z share is a form of mutual fund share that is of a class that may be acquired by persons who are in the employ of the institution that manages the mutual fund. Z shares may be provided to employees as part of the overall benefits of employment, or simply offered for purchase. There are a couple of reasons why Z shares can be advantageous for both the institution and the employee. One of the obvious reasons why Z shares are helpful for the employee is that the shares allow the employee to build an investment portfolio within the perimeters of his or her circumstances. Z shares, when issued as a benefit of employment, can function as an effective way to help the employee prepare for retirement. The institution may choose to issue Z shares to the employee, based upon the amount of annual gross income, a merit system, or a combination of the two. In other instances, the institution may offer to match the Z shares purchased by the employee, up to a certain amount, each calendar year. F
