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12B-1 funds |
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12B-1 funds Mutual funds that do not charge an up-front or back-end commission, but instead take out up to 1.25% of average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC's Rule 12B-1 (passed in 1980). |
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In
general, 12b-1 funds have higher expense ratios and lower net investment
returns than non-12b-1 funds. |
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12B-1 funds