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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 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
 Assets
Distribution
Expenses
Investment company
Its
Mutual fund
Net assets
Net
No load
Prospectus
Sales charge
Sales
Sale
Sec
Shares
Share
 
 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 >>

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