12B-1 Plan

What does it mean?
A no-load mutual fund that is allowed to use fund assets to pay for distribution costs rather than charging a 12b-1 fee. The 12b-1 fee is an annual percentage charge based on the current value of the investment.

In Other Words...
The Government typically restrict this to 1%.

Related Links
Mutual Fund Fees - An article by the Securities and Exchange Commission on fees and loads involved with mutual funds.

Mutual Fund Basics Tutorial - Learn about the basics--and the pitfalls!--of investing in mutual funds.

Related Terms
12b-1 Fees | Mutual Fund

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