12b-1 Plan- Expense under which a certain percentage of fund assets can be used to pay distribution and marketing expenses. BE SURE TO CHECK THESE on your mutual funds.
12B-1 Plan
A no-load mutual fund that is allowed to use fund assets to pay for its distribution costs. The 12B-1 plan mutual fund is an alternative to paying the sales fees encountered in loaded funds.
12b-1 plan:
A mutual fund distribution plan under which a certain percentage of mutual fund assets, usually 1% or less, can be used to pay distributions and marketing expenses.
Some 12b-1 plans also authorize and include 'shareholder service fees,' which are fees paid to persons to respond to investor inquiries and provide investors with information about their investments.
12b-1 fees: Advertising and promotional costs incurred by a mutual fund and charged against the assets in the fund under a Rule 12b-1 plan filed with the SEC.
fund's annual fund operating expenses and can be thought of as an alternate way of paying sales-related expenses, such as compensating investment professionals. A fund can have 12b-1 fees only if its board of directors has approved a 12b-1 plan ...
 See also: Sales, Investment, Fund, Distribution, Asset
  
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