The Security and Exchange Commission (SEC) voted unanimously recently to propose limits on mutual fund 12b-1 fees and provide more transparency to investors. The SEC’s proposal would help protect investors by limiting 12b-1 fees to 0.25%, improve the transparency of fees for investors, encourage retail competition, and revise fund director oversight duties.
12b-1 Fees?
If you have ever put money into a mutual fund you were most likely charged a 12b-1 fee for every year you had money in that fund. The 12b-1 fee is a marketing or distribution fee on a mutual fund. It’s considered an operational expense currently capped at 1% (some funds charge less) of a fund’s net assets. It may not seem like much but they’re costly, Continue Reading…