The12b-1 mutual fund fees are charged for “distribution and/or services” and are so permitted by the SEC.
Funds with 12b-1 fees still call themselves “no fee” or “no load.” That adds to investor confusion.
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.
The relatively high charge is not necessary. 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. ( See the Earl J Weinreb NewsHole® comments.)
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