Those 12b-1 Mutual Fund Fees

There are still 12b-1 mutual fund fees around, plaguing investors. These were originally permitted by the SEC to allow mutual funds to market their service to new investors. They are actually a small sales load that manage to add up over the years. Most funds no longer use them.

The 12b-1 charges originally were used to pay fees for the distribution of funds by brokers. But they still persist today, even when brokers are not involved, but are ostensibly used for sales and marketing.

My suggestion: Avoid any mutual funds that charge them. Those fees become significant deductions from your accumulated holdings over the years.