12b-1 Fees Definition

Home


	You're here: Home --> Dictionary --> Numbers --> 12b-1


	A Few Related Terms


	Expense Ratio Loads Prospectus Mutual Fund


	12b-1 Fees Term category: Mutual Funds In 10 words or less: A company's quarterly report that it files with the SEC.


	Definition: The 12b-1 is a provision in securities law that allows mutual funds to charge an annual marketing fee to its investors. This fee is typically between 0.2-1.0% and it is included in the fund's expense ratio. Companies are required to disclose their 12b-1 fee in their prospectus. StockJargon advice: The 12b-1 fee is just basically another way for mutual funds to impose extra fees on their clients. As investors, it's always important to invest in mutual funds with lower expenses (otherwise they're just taking your money away!), so we recommend acquiring a premium membership to Morningstar.com and using its mutual fund screener to locate funds with low expenses.


	Related Articles


	Load vs. No-load Unsure of what mutual fund loads are? We'll explain them and tell you why no-load funds are better for you… How to Evaluate No-Load Mutual Fund Investing An investment advisor shares his tips when it comes to evaluating mutual fund opportunities... Prospectus Learn how to read the report that every mutual fund sends its investors...


	Related Books


	Morningstar Guide to Mutual Funds by Christine Benz Common Sense on Mutual Funds by John Bogle Mutual Funds for Dummies by Eric Tyson Exchange Traded Funds By Jim Wiandt


	# -A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z