Questionable 12b-1 Mutual Fund Fees

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.

                       

They 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,  ostensibly used for sales and marketing.

                       

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 and @BusinesNewshole at Twitter.)