12b-1 funds


12b-1 funds
Mutual funds that do not charge an upfront or back-end commission, but instead take out up to 1.25% of average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC's Rule 12b-I (passed in 1980). The New York Times Financial Glossary
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mutual funds that do not charge an up-front or back-end commission, but instead take out up to 1.25% of average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC's Rule 12B-1 (passed in 1980). Bloomberg Financial Dictionary

Financial and business terms. 2012.

Look at other dictionaries:

  • 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

  • 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 fee — A type of fee charged to investors in some mutual funds. In theory, the fee is supposed to reimburse the sponsor for sales, distribution, or shareholder liaison expenses. In reality, however, it is another type of administrative or management fee …   Financial and business terms

  • Annual fund operating expenses — For investment companies, the management fee and other expenses, including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial and accounting services. For 12b 1 funds,… …   Financial and business terms

  • annual fund operating expenses — For investment companies, the management fee and other expenses, including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial ( custodian) and accounting services. For 12b 1 …   Financial and business terms

  • 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

  • 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

  • Expense Ratio — Total Annual Fund Operating Expenses ( Expense Ratio ) the line of the fee table in the prospectus that represents the total of all of a fund s annual fund operating expenses, expressed as a percentage of the fund s average net assets. Looking at …   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

  • 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


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