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Glossary > 1 > "12b-1 fee" Definition

12b-1 fee

A provision that allows a mutual fund to collect a small fee from investors. This fee is designated for promotions, sales, or any other activity connected with the distribution of the fund"s shares. The fee must be reasonable: 0.5% to 1% of the fund"s net assets, and up to a maximum of 8.5% of the offering price per share.

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12b-1 fee - A provision that allows a mutual fund to collect a small fee from investors. This fee is designated for promotions, sales, or any other activity connected with the distribution of the fund"s shares. The fee must be reasonable: 0.5% to 1% of the fund"s net assets, and up to a maximum of 8.5% of the offering price per share.

12b-1 fee : a provision that allows a mutual fund to collect a small fee from investors. this fee is designated for promotions, sales, or any other activity connected with the distribution of the fund"s shares. the fee must be reasonable: 0.5% to 1% of the fund"s net assets, and up to a maximum of 8.5% of the offering price per share.