By Investment U Research Team Fees are something every investor needs to be aware of. If you’re looking at investing in a mutual fund, for example, you might see a specific type of fee attached: a 12b-1. What is a 12b-1 fee and what are you paying for when you choose to invest in that fund?
The answer comes from an SEC rule of the same name, which allows managed funds to charge a fee for marketing, distribution and administration expenses. This fee typically ranges between 0.25% and 0.75%, and incorporates into the fund’s expense ratio. It’s not always evident in a cursory evaluation of the …read more
