Another name for a 12b-1 fee is a
A) distribution fee.
B) redemption fee.
C) sales fee.
D) management fee.
E) mutual fund tax.

Question

Quizplus · Accepted Answer

A 12b-1 fee is also known as a distribution fee as it is used by mutual funds for distribution and marketing expenses. The fee is deducted from the assets of the fund and is an ongoing fee, typically assessed annually. The fee is meant to cover expenses such as advertisements, commissions, and administrative costs associated with distributing the mutual fund to investors.

Another Name for a 12b-1 Fee Is a