Mutual funds 12b-1 fees have the same effect as front-end loads in that they reduce the return received by investors.

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Quizplus · Accepted Answer

12b-1 fees are annual fees charged by mutual funds to cover marketing and distribution expenses. These fees are deducted from the fund's assets, which reduces the return received by investors. Front-end loads, on the other hand, are one-time fees charged when an investor buys shares in a mutual fund. Both 12b-1 fees and front-end loads lower the return received by investors.

Mutual Funds 12b-1 Fees Have the Same Effect as Front-End