Questions tagged [12b-1 fee]

Carlo Fri Oct 11 2024 | 5 answers 1095

I'm trying to understand what a 12b-1 fee is. Could you explain it to me in simple terms, including what it's used for and how it affects my investments?

SumoHonor Wed Sep 25 2024 | 7 answers 1407

Could you please explain what a 12b-1 fee disclosure is? I understand it's related to mutual funds, but I'm not entirely clear on how it works or why it's important for investors to be aware of it. Is this fee charged directly to investors, or is it taken out of the fund's assets? And how does the fee impact the fund's performance over time? I'd appreciate it if you could provide a concise yet comprehensive overview of the concept.

SejongWisdom Sun Sep 22 2024 | 7 answers 1488

Could you please clarify for me, what exactly is the maximum annual 12b-1 fee? I understand that this fee is often associated with mutual funds and is used to cover the costs of distribution and marketing, but I'm unsure of the specific limitations or caps that might be in place for this type of expense. Is there a standard or industry-wide maximum that funds must adhere to, or does it vary depending on the fund's size, structure, or other factors? I'm interested in knowing more about how this fee is regulated and what investors should be aware of when considering it in their investment decisions.

Andrea Wed Sep 04 2024 | 5 answers 1383

Could you elaborate on the regulatory process surrounding the approval of a 12b-1 fee? Specifically, who are the authorities or entities that must sign off on this type of fee before it can be implemented by a mutual fund or other investment vehicle? Additionally, are there any specific criteria or guidelines that these approvers must consider when evaluating a 12b-1 fee proposal?

WhisperEcho Wed Sep 04 2024 | 5 answers 1161

Excuse me, could you elaborate on the concept of a 12b-1 fee charge? I'm interested in understanding what it typically represents and how it is calculated within the context of investment funds. Is this fee a mandatory charge for all types of funds, or are there exceptions? Additionally, how does this fee impact the overall return on investment for investors? I'd appreciate any insights you can provide on this matter.