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Definition of '12B-1 Fee'
An annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered an operational expense and, as such, is included in a fund's expense ratio. It is generally between 0.25-1% (the maximum allowed) of a fund's net assets. The fee gets its name from a section in the Investment Company Act of 1940.
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Investopedia explains '12B-1 Fee'
Back in the early days of the mutual fund business, the 12b-1 fee was thought to help investors. It was believed that by marketing a mutual fund, its assets would increase and management could lower expenses because of economies of scale. This has yet to be proved. With mutual fund assets passing the $10 trillion mark and growing steadily, critics of this fee, which today is mainly used to reward intermediaries for selling a fund's shares, are seriously questioning the justification for using it. As a commission paid to salespersons, it is currently believed to do nothing to enhance the performance of a fund.
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Search results for '12B-1 Fee'
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http://www.investopedia.com/ask/answers/07/mutual_fund_cost.asp
... services, taxes, legal, accounting and auditing), expressed as the expense ratio,
and a marketing/distribution fee (referred to as a 12b-1 fee, if there is one ...
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http://www.investopedia.com/articles/mutualfund/07/no-load.asp
... Advertisement - Article continues below. In addition, a load fund can also have
a 12b-1 fee that can be as high as 1% of a fund's net asset value (NAV). ...
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http://www.investopedia.com/university/quality-mutual-fund/chp8-fund-cost-expense
... In addition to these conventional operating expenses, some funds also have a marketing,
or distribution, fee commonly referred to as a 12b-1 fee. ...
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http://www.investopedia.com/university/quality-mutual-fund/chp8-fund-cost-expense/
... In addition to these conventional operating expenses, some funds also have a marketing,
or distribution, fee commonly referred to as a 12b-1 fee. ...
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http://www.investopedia.com/university/quality-mutual-fund/chp8-fund-cost-expense/default.asp
... In addition to these conventional operating expenses, some funds also have a marketing,
or distribution, fee commonly referred to as a 12b-1 fee. ...
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http://www.investopedia.com/university/mutualfunds/mutualfunds2.asp
... office) are not. The last part of the ongoing fee (in the United States
anyway) is known as the 12B-1 fee. This expense goes ...
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http://www.investopedia.com/articles/retirement/09/no-load-annuities-life-insurance.asp
... For example, the average variable annuity charges an M&E fee of approximately 1.5%,
while ... the same, but no-load annuities usually don't charge 12b-1 fees like ...
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http://www.investopedia.com/exam-guide/finra-series-6/investment-companies/sales-charges-expenses.asp
... Unlike sales charges, 12b-1 fees are deducted from the fund asset value every year,
either as a flat fee or as a percentage of the fund's average total NAV ...
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http://www.investopedia.com/articles/mutualfund/07/stop_fees.asp
... It seems as though non-investment factors, such as a fund's 12b-1 fee are discussed
and written about in great length, while investment factors like a fund's ...
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http://www.investopedia.com/exam-guide/series-7/customer-accounts/costs-and-fees.asp
... 12b-1 fee: the mutual fund charges this expense to pay for its marketing
and distribution costs. It ... The fund pays the 12b-1 fee. Load ...
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