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What is 12b-1 fee?

A 12b-1 fee is a marketing fee on a mutual fund that is paid annually. The 12b-1 fee is typically between 0.25-1% of the fund�s net assets. It is named as such because of a section in the Investment Company Act of 1940 entitled 12B-1. Since it is an operational expense it is included in the expense ratio.

Other Financial Terms and Vocabulary

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