A category of mutual fund shares which charges no load fee, but imposes a redemption fee which decreases over time till it reaches zero after the shares have been held long enough (5-6 years). In this sense, class “B” shares convert into class “A” shares when the redemption fee period is over. Conventionally, for each class of mutual fund shares, there is one portfolio of securities and one investment advisor. Each class is entitled to the same claim on the portfolio. However, classes differ in how the mutual fund collect fees and expenses from investors.For example, class “B” shares may charge investors a distribution fee of 1% and a 5.2% redemption fee.