12b-1 Fee: A number of load and no-load mutual funds levy 12b-1 fees on the value of your mutual fund account to offset the fund's promotional and marketing expenses. These asset-based fees, which get their name from the Securities and Exchange Commission (SEC) ruling that describes them, typically amount to somewhere between 0.5% and 1% annually of the net assets in the fund. A fund that charges 12b-1 fees must detail those expenses, along with other fees it imposes, in its prospectus.

 

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12b-1 Fee: A number of load and no-load mutual funds levy 12b-1 fees on the value of your mutual fund account to offset the fund's promotional and marketing expenses. These asset-based fees, which get . . . View Full Definition

12B-1 Fees: The percent of a mutual fund's assets used to defray marketing and distribution expenses. The amount of the fee is stated in the fund's prospectus. The SEC has recently proposed that 12B-1 f . . . View Full Definition

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