Mutual funds bear expenses similar to other companies. The fee structure of a mutual fund can be divided into two or three main components: management fee, nonmanagement expense, and 12b-1/non-12b-1 fees. All expenses are expressed as a percentage of the average daily net assets of the fund.
Fees and expenses borne by the investor vary based on the arrangement made with the investor's broker.
An additional expense which does not pass through the statement of operations and cannot be controlled by the investor is brokerage commissions.