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 >>

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