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On top of management fees for operating a fund, most funds will also charge a fee for share distribution and service costs, commonly referred to as "12b-1" fees (named after a regulatory paragraph regarding investment companies). "12b-1" fees in practical terms refers mostly to money incentives (kickbacks) paid to brokers and other wholesalers for pushing the funds to retail investors. The 12b-1 fee reduces after-fee performance of a fund and decreases the return on your initial investment.
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What are 12b-1 fees?
On top of management fees for operating a fund, most funds will also charge a fee for share distribution and service costs, commonly referred to as "12b-1" fees (named after a regulatory paragraph regarding investment companies). "12b-1" fees in practical terms refers mostly to money incentives (kickbacks) paid to brokers and other wholesalers for pushing the funds to retail investors. The 12b-1 fee reduces after-fee performance of a fund and decreases the return on your initial investment.
What is non 12b1 service fee?
A non-12b-1 service fee is a charge applied by financial firms that is not related to the 12b-1 fees typically associated with mutual funds, which are used to cover marketing and distribution costs. Instead, these fees may cover other services, such as account maintenance or advisory services, and can be assessed as a flat fee or a percentage of assets under management. Unlike 12b-1 fees, which are ongoing and tied to fund performance, non-12b-1 service fees may vary based on the specific services provided. It's important for investors to understand these fees, as they can impact overall investment returns.
Are 12b-5 fees included in gross expense ratio?
Yes, 12b-1 fees are included in the gross expense ratio (GER) of a mutual fund or exchange-traded fund (ETF). The GER encompasses all operating expenses, including management fees, administrative costs, and 12b-1 fees, which are used for marketing and distribution. However, it's important to note that the net expense ratio (NER) can differ if the fund waives certain fees or expenses.
What is the answer to 12b 4?
12b-4
What are the extra expenses of getting a mutual fund?
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.
Is 12 times b greater than 12 but is less than 24?
Only if b is greater than 1 and less than 2 will 12b be greater than 12 and less than 24. If b is 1 or less, 12b will be less than or equal to 12 If b is 2 or more, 12b will be greater than or equal to 24.
What is the LCM of 12b and 9c3?
The LCM is 36bc^3.
How do you solve fractions negative 9 over 4b minus 10 over 3b equals negative 67 over 6?
-9/4b -10/3b =-67/6 9/4b +10/3b = 67/6 27/12b + 40/12b = 67/6 67/12b =67/6 12b = 6 b = 6/12 b=1/2
Factorise 6a-12b plus 30?
6a -12b + 30 = 6 (a - 2b + 5)
What is the answers for ecce Romani 1 chapter 12 exercise 12b?
a homework assignment from the class
How would you work out 24 equals 48 - 12b?
24 = 48 - 12b subtract 48 from each side -24 = -12b divide both sides by -12 2 = b
What is the least common multiple of 36ab and 12b?
36ab = 3a x 12b so is the LCM
