Mutual funds with 12b-1 fees included can still call themselves “no fee” or “no load” which adds to investor confusion. The12b-1 mutual fund fees are charged for “distribution and/or services” and are so permitted by the SEC.
Fees are allowed up to 0.25%. That is no small amount when compared to what you can pay as total fund charges these days.
In addition to the charge being relatively high, it’s not necessary for any investor to incur. There are no actual benefits. The fee is usual when a fund is sold through brokers. You need not buy funds that way. Go directly to the source.
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