12B-1 Fund

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12B-1 Fund

A mutual fund that charges shareholders a small percentage of the fund's market value, instead of a load (or sales fee). That is, a 12B-1 Plan does not require shareholders to pay a fee when buying or selling shares; rather, they simply deduct what is owed to the shareholder once per year. Usually a 12B-1 plan charges less than 1%.
References in periodicals archive ?
They called for the securities regulator to act now on a fiduciary rule for brokers, to reform 12b-1 mutual fund fees and to stop the approval of risky ETFs.
A former managing director at Citigroup, highlights of his career include the creation and marketing of securitizations backed by 12b-1 mutual fund fees.
The six remaining asset classes that experienced downgrades during the second quarter include 12b-1 mutual fund fees (26 downgrades), franchise loans (9), manufactured housing (5), credit cards (12), new assets (2), and RVs (1).