Do advisors get paid on 12b-1 fees?
Can you please clarify if financial advisors receive compensation through 12b-1 fees? If so, how does this system work, and what are the potential implications for investors? I'm particularly interested in understanding if there's a potential conflict of interest when advisors' compensation is tied to the performance of mutual funds that generate these fees.
Are 12b-1 fees going away?
Are you aware of the recent buzz surrounding the potential elimination of 12b-1 fees in the mutual fund industry? These fees, which are charged to investors to cover marketing and distribution expenses, have been a controversial topic for years. Some argue that they are a necessary evil to get mutual funds in front of investors, while others claim they are a hidden cost that unfairly burdens investors. With regulators and industry leaders discussing potential changes, do you think 12b-1 fees are on their way out, or will they continue to be a part of the mutual fund landscape? What are your thoughts on the potential impact of these fees on investors and the mutual fund industry as a whole?
Do no-load funds have 12b-1 fees?
Could you please clarify for me if no-load funds are exempt from incurring 12b-1 fees? I've heard conflicting information on the matter and I'm seeking a definitive answer. I understand that no-load funds typically do not charge a sales commission or upfront fee to investors, but I'm unsure if this also applies to the 12b-1 fee, which is an annual fee meant to cover marketing and distribution costs. Could you help me understand the relationship between no-load funds and 12b-1 fees?