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Q3B.

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Essentials Of Investments
Found in: Page 104
Essentials Of Investments

Essentials Of Investments

Book edition 9th
Author(s) Zvi Bodie, Alex Kane, Alan Marcus, Alan J. Marcus
Pages 748 pages
ISBN 9780078034695

Short Answer

What is a 12b-1 fee?

It is an annual fee charged for managing the marketing and distribution costs of mutual funds.

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Step by Step Solution

Definition

The investment in mutual fund incurs a fee for its management and includes other expenses too. 12b-1 fee is one such charge amongst a host of other charges such as operating expenses, front-end and back-end load etc

Explanation of 12b-1 fee

12b-1 fee are annual fee charged by mutual fund, as mandated by Securities and Exchange Commission for managing its marketing and distribution costs

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