Mutual fund that is able to use its own assets in order to pay for its distribution costs. This is used by no load mutual funds as an alternative to having up-front or back-end sales fees charged to clients on fund purchases or sales. These fees are charged on an annual basis.
Related information about 12b-1 plan:
- 12B-1 Plan Definition | Investopedia
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 ...
- ICI - Background Information About 12b-1 Fees
Many funds that are sold through fund supermarkets adopt a 12b-1 plan to finance the ... Directors also review the amounts spent under the 12b-1 plan and the ...
- 12B-1 Plan - Financial Dictionary - The Free Dictionary
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 ...
- What Exactly Are 12b-1 Fees, Anyway? - WSJ.com
Jul 6, 2010 ... Because of the conflict concerns, the SEC required fund directors to annually approve a fund's 12b-1 plan. Many fund directors hate the current ...
- DOES 12B-1 PLAN OFFER ECONOMIC VALUE TO - StudyFinance
Results suggest that the existence of 12b-1 plan ... It is time mutual fund industry looked at its cost structure and especially at 12b-1 plan which authorizes mutual ...
- What is 12B-1 plan? definition and meaning - BusinessDictionary.com
Definition of 12B-1 plan: An investment fund that does not have administration fees associated with it to manage the fund. This option is beneficial for investors ...
- Mutual Fund Fees and Expenses
Aug 8, 2007 ... The rule permits a fund to pay distribution fees out of fund assets only if the fund has adopted a plan (12b-1 plan) authorizing their payment.
- What is 12b-1 plan? definition and meaning - InvestorWords.com
Definition of 12b-1 plan: Mutual fund that is able to use its own assets in order to pay for its distribution costs. This is used by no load mutual funds as an ...