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12b-1 fee

An extra fee charged by some mutual funds to cover promotion, distributions, marketing expenses, and sometimes commissions to brokers. A genuine no-load fund does not have 12b-1 fees, although some funds calling themselves "no-load" do have 12b-1 fees (as do some load funds). 12b-1 fee information is disclosed in a fund's prospectus, is included in the stated expense ratio, and is usually less than 1%.

Related information about 12b-1 fee:
  1. 12B-1 Fee Definition | Investopedia
    An annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered an operational expense and, as such, is included in a fund's expense ratio ...
     
  2. What Exactly Are 12b-1 Fees, Anyway? - WSJ.com
    Jul 6, 2010 ... Many of the funds, in turn, charge investors a 0.25% 12b-1 fee to partially cover that cost ... That 12b-1 fee can be in addition to a front-end load.
     
  3. Mutual Fund Fees and Expenses
    Aug 8, 2007... will be disclosed in the fund's prospectus. A fund or class with a contingent deferred sales load typically will also have an annual 12b-1 fee.
     
  4. Mutual fund fees and expenses - Wikipedia, the free encyclopedia
    They also tend to have a lower 12b-1 fee and lower annual expenses than other ... One notable component of the expense ratio of U.S. funds is the "12b-1 fee", ...
     
  5. SEC Proposes New 12b-1 Fee Rules - CBS News
    Jul 27, 2010 ... The SEC is proposing new 12b-1 fee rules. Is this a step in the right direction, or just more of the same?
     
  6. What is 12b-1 fee? definition and meaning
    Definition of 12b-1 fee: An extra fee charged by some mutual funds to cover promotion, distributions, marketing expenses, and sometimes commissions to ...
     
  7. What Is a Mutual Fund 12b-1 Fee? - Mutual Funds - About.com
    A fee that is charged by some mutual funds, which is used to pay marketing, distribution, and service costs, and is paid to the broker. The Financial Industry ...
     
  8. The True Cost of 12b-1 Fees
    Nov 11, 2010 ... Collectively, these funds had an average net expense ratio of 1.19%, an average 12b-1 fee of 0.13%, and an average 15-year annualized ...