What Is A 12-b-1 Fee And Is It Included In An Expense Ratio Of a Mutual Fund?

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Ricky Irvine

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.

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