What Is A 12-b-1 Fee And Is It Included In An Expense Ratio Of a Mutual Fund?
hank | Feb 09, 2010 | 0 comments
Hank – quick one for you. Are 12-b-1 fees included in an expense ratio of a mutual fund? – Jay from Kansas
Hey Jay – quick answer back to you. No. Click the image below to enlarge:
You’ll notice it is a SEPARATE fee. But also keep in my that all published mutual fund gains/losses percentages are net of operating cost. So if you see a fund that has 12-b-1 fees of 1.0% and an expense ratio of 1.0%, the fund really kicked out 12% overall, but took that 2% off the top.
Filed Under: Investing • Mutual Funds • Readers Requests • advice • financial education
[...] like this… 1. Mutual fund manager “A” has a marketing team “B” (the 12-b-1 fee) that needs to feed their kids. 2. Team “B” has a job, and that job entails taking the [...]