Most funds no longer charge 12b-1 mutual fund fees but they are still around. These were originally permitted by the SEC to allow marketing to new investors.
These represent a small sales load that adds up over the years. The 12b-1 charges originally were used to pay fees for the distribution of funds by brokers. But they still persist even when brokers are not involved; they are ostensibly used for sales and marketing.
My suggestion: Avoid mutual funds that charge them. Those fees become significant deductions from your accumulated holdings over the years. (See the Earl J Weinreb NewsHole® comments.)
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