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 fees in excess of 0.25% be classed as a load. A true no load fund has neither a sales charge nor 12b-1 fee.

• Are charges assessed against an individual's mutual fund holdings for marketing and distribution expenses.

• A provision of the Investment Company Act of 1940 that allows a Mutual Fund to collect a fee for the promotion, sale, or other activity connected with the distribution of its shares. The fee must be reasonable (typically 1/2 to 1% of net assets managed), up to a maximum of 8.5% of the offering price per share.

 Embedded terms in definition
Investment company
Mutual fund
Net assets
No load
Sales charge
 Related Terms
 12b 1 funds
Custodial fees
Graham harvey measure 1
Interest impact on accumulation of 1 per period
Interest impact on present value of ordinary annuity of 1 per period
Participating fees
Sec rule 15c3 1
T+1 or t plus 1

<< 1099 s 12b 1 funds >>

Ways to Cope Financially During and After a Big Change: Here are suggestions for staying focused and avoiding costly decisions during changing times. More...

Leaders aren't born, they are made. And they are made just like anything else, through hard work. And that's the price we'll have to pay to achieve that goal, or any goal. - Vincent Thomas "Vince" Lombardi


Copyright 2009-2019 GVC. All rights reserved.