Under SEC rules, the managers of certain funds are allowed to deduct charges for advertising, brokerage commissions, and other sales expenses directly from the fund assets rather than billing investors. These fees are known as ________.

Question

Quizplus · Accepted Answer

These fees are commonly referred to as 12b-1 charges, which are fees assessed by the mutual fund to cover marketing and distribution expenses. This allows the mutual fund to use fund assets to cover expenses rather than charging investors directly.

Under SEC Rules, the Managers of Certain Funds Are Allowed