The
12b-1 mutual fund fees are still around. These were originally
permitted by the SEC to allow mutual funds to market their product to
new investors, so are actually a sales load that adds up over the
years. Fortunately, 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, even when brokers are
not involved.
My
suggestion: Avoid any mutual funds that charge them. Those fees
become significant deductions from your accumulated holding values
over the years.
(See
the Earl J. Weinreb NewsHole® comments.
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