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A mutual fund is a pooled collection of investment funds. When you buy shares in a mutual fund, your money is combined with other investors' money. A professional fund manager uses the capital to...
One notable component of the expense ratio of U.S. funds is the "12b-1 fee", which represents expenses used for advertising and promotion of the fund. 12b-1 fees are paid by the fund out of mutual fund assets and are generally limited to a maximum of 1.00% per year (.75% distribution and .25% shareholder servicing) under FINRA Rules. [7]
Class A shares will typically come with a front-end sales load, but will have lower annual expenses, such as the 12b-1 fee, than other mutual fund classes. Some funds will lower the sales load as ...
A mutual fund is an investment fund that pools money from many ... combined with a high 12b-1 fee. Class B shares usually convert automatically to Class A shares ...
Management fee: The management fee pays for the fund’s managers and investment advisor. 12b-1 fees : These pesky fees cover the costs of marketing and selling the fund.
For example, the 12(b)1 fee can be one of the most significant fees on a US Mutual fund. But how would one even begin to describe a "12(b)1" fee without reference (implicit or explicit) to Section 12(b)1 of the US Investment Company Act? Even the very term "mutual fund" is a product of the Investment Company Act of 1940 passed by the US Congress.
The post Mutual Fund Fees, Costs and Other Expenses appeared first on SmartReads by SmartAsset. Investing in mutual funds can often make you feel lost, with an array of complex terminologies, fees ...
The Fidelity Magellan Fund (Mutual fund: FMAGX) is a U.S.-domiciled mutual fund from the Fidelity family of funds. [1] It is perhaps the world's best-known actively managed mutual fund, known particularly for its record-setting growth under the management of Peter Lynch from 1977 to 1990. [2] On January 14, 2008, Fidelity announced that the ...