Typical Mutual Fund Fees

The cost of mutual fund fees can add up.

Mutual fund companies pass the cost of marketing, selling and managing the fund on to its investors in the form of fees. Typical mutual fund fees include load fees, fund management fees and the costs related to the marketing of the mutual fund, called 12b-1 fees.

Load Fees

Load fees pay broker sales commissions and are either front-end, back-end or level loads. You pay front-end load fees when you purchase the mutual fund shares and back-end load fees when you redeem or sell your shares. You pay level load fees periodically throughout the year.

Management Fees

Management fees are the costs related to the ongoing management of a mutual fund. These fees include payment to the investment broker or adviser and the administrative costs of managing the mutual fund.

12b-1 Fees

The 12b-1 fees charged to mutual fund owners pay for the cost of advertising and marketing the mutual fund, as well as the costs associated with printing a mutual fund's prospectus and any mailing and delivery fees of the prospectuses.

References

• The U.S. Securities and Exchange Commission: Invest Wisely: An Introduction to Mutual Funds
• The Motley Fool: Mutual Fund Fees