12B-1 FEES at Investment Glossary

What is it? The percent of a mutual funds assets used to defray marketing and distribution expenses. The amount of the fee is stated in the funds prospectus. The SEC has recently proposed that 12b1 fees in excess of 0.25% be classed as a load. A true no load fund has neither a sales charge nor 12b1 fee.

Investing Definition & Term Added By: Madison

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