Are up front commissions charged in 12b-1 mutual funds?
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patin2014
Apprentice
Joined: 17 Mar 2009
Posts: 2
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 Posted: 02/13/11 - 06:15 Post subject: |
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| I have recently come across the possibility of joining a so called 12b-1 fund, which is of course a mutual fund. There are said to be some advantages to this type of mutual fund. Can you tell me if up front commissions are charged in the case of 12b-1 funds or not? |
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phyllys
Apprentice
Joined: 26 Apr 2010
Posts: 3
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| Posted: 03/15/11 - 01:08 Post subject: |
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| No, with 12b-1 funds, the commissions are taken on a daily basis and not up front. Because of this, you will not notice the cost so much and this can really be of great advantage to some investors. After all, a spread cost is one that is much easier to bear. I hope that this answers your question? |
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