Fidelity Advantage Class: Lower Mutual Fund Costs for Large Investments

What Is Fidelity Advantage Class?

Fidelity Investments, the mutual fund giant, offers cost breaks for large investments. The Advantage Class is a program that reduces expenses in return for large investment minimums. Many of Fidelity's individual and institutional mutual funds offer Advantage Class.

Details Vary by Fund

Advantage Class benefits and requirements differ among various Fidelity index-based mutual funds, including the low-cost Spartan Funds. The Spartan index funds, which already feature lower expense ratios, require a $10,000 minimum investment for Advantage Class shares, and certain other non-Spartan index funds require a $2,500 investment for this class of shares. The expense ratio reductions vary, but they are generally up to approximately 60 percent lower than expenses for regular shares, known as Investor Class shares. For example, at the time of publication, the net expense ratio for Fidelity Spartan Mid Cap Index Fund Investor Class shares was 0.23 percent and the minimum investment was $2,500. In contrast, the fund's Advantage Class shares charged 0.09 percent and required a $10,000 minimum. Advantage Institutional Class shares required a minimum investment of $100 million and offered even lower net expense ratios.