A 12b-1 fee is a hidden load because it increases a shareholder's earning power each year without being described as a sales commission.

Question

Quizplus · Accepted Answer

A 12b-1 fee is not a hidden load that increases a shareholder's earning power; instead, it is an annual fee charged by a mutual fund to cover distribution and marketing expenses, which can reduce the fund's overall return to the investor.

A 12b-1 Fee Is a Hidden Load Because It Increases