12b-1 fees

12b-1 fees definition - finance
Fees paid by mutual fund investors that are deducted from the fundÂ’s assets. These fees pay for marketing and distribution expenses, such as brokersÂ’ commissions. They fall under the heading of annual operating expenses. Rule 12b-1 fees are disclosed in a fundÂ’s prospectus and typically are less than 1 percent.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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