Cryptocurrency Q&A
What are 12b-1 fees primarily intended to cover?
What are 12b-1 fees primarily intended to cover?
Caterina
Wed Sep 04 2024
|
7 answers
1560
Can you please elaborate on the primary purpose of 12b-1 fees? Are they meant to compensate for certain services rendered to investors, cover the costs associated with distribution and marketing of mutual funds, or serve a different purpose altogether? It would be insightful to understand the key expenditures that these fees are intended to address.
7 answers
Lorenzo
Fri Sep 06 2024
However, it's important to note that these fees come at a cost to investors, as they reduce the overall return on investment.
Was this helpful?
71
91
EthereumEagleGuard
Fri Sep 06 2024
The 12b-1 fee serves a crucial role in the mutual fund industry, financing the distribution and marketing efforts of these financial products.
Was this helpful?
256
28
SkyWalkerEcho
Fri Sep 06 2024
This fee is essentially a commission paid to brokers who successfully sell mutual fund shares to investors.
Was this helpful?
310
90
Caterina
Fri Sep 06 2024
By compensating brokers for their sales efforts, 12b-1 fees help drive the growth and popularity of mutual funds.
Was this helpful?
359
25
HanRiverWave
Thu Sep 05 2024
A portion of the investment assets held in a mutual fund is allocated towards covering these 12b-1 fees.
Was this helpful?
71
45
Load 5 more related questions
