What is a 12b-1 fee for mutual fund?

[Allina]

What is a 12b-1 fee for mutual fund?

[Lorane]

12b-1 fees is the percent of a mutual fund's assets used for marketing and distribution expenses. The amount of the fee is stated in the fund's prospectus. The Securities and Exchange Commission has proposed that 12B-1 fees in excess of 0.25% be classed as a load. A true no-load fund has neither a sales charge nor 12B-1 fee. If you want more key terms for mutual fund investment, you can check out a page from Fundmojo.com, here is the url: http://www.fundmojo.com/primer.shtml. I think Fund Mojo also warns you if a fund has 12b-1 in it even though the fund declares itself as no load.