12b-1 fees


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 a 12b-1 fee. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • 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… …   Financial and business terms

  • 12B-1 Plan — A no load mutual fund that is allowed to use fund assets to pay for its distribution costs. The 12B 1 plan mutual fund is an alternative to paying the sales fees encountered in loaded funds. By charging an annual percentage based on the …   Investment dictionary

  • 12B-1 Fund — A type of mutual fund that charges its holders 12B 1 fees instead of up front or back end commissions. 12B 1 funds take a portion of assets held and use them to pay expense fees and distribution costs. These costs are included in the fund s… …   Investment dictionary

  • Mutual fund fees and expenses — are charges that may be incurred by investors who hold mutual funds. Running a mutual fund involves costs, including shareholder transaction costs, investment advisory fees, and marketing and distribution expenses. Funds pass along these costs to …   Wikipedia

  • Exchange Fees — A type of investment fee that some mutual funds charge to shareholders if they transfer to another fund within the same group. Other fees shareholders may encounter include sales loads, redemption fees, purchase fees, account fees, 12b 1 fees and …   Investment dictionary

  • Mutual fund — This article is about mutual funds in the United States. For other forms of mutual investment, see Collective investment scheme. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors… …   Wikipedia

  • National Association of Personal Financial Advisors — (or NAPFA) is an American financial planning trade organization created in 1983 to expand the use of Fee Only financial advisors by individual consumers. NAPFA established the first set of professional standards for Fee Only financial advisors… …   Wikipedia

  • Class Of Shares — 1. Types of listed company stock that are differentiated by the level of voting rights shareholders receive. For example, a listed company might have two share classes, or classes of stock, designated as Class A and Class B. 2. With load mutual… …   Investment dictionary

  • Level Load — An annual charge deducted from an investor s mutual fund assets to pay for distribution and marketing costs for as long as the investor holds the fund. For the most part, this fee is paid to intermediaries for selling a fund s shares to the… …   Investment dictionary

  • Y-Share — A class of mutual fund shares that often has a high minimum investment, such as $500,000 per lot, and the added benefit of waived or limited load charges and fees. Due to the high minimum investment required, Y shares are often only accessible by …   Investment dictionary


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