• The 12b-1 fund bears the 12b-1 commission, which covers the fund’s selling and distribution costs.

  • This fee is a percentage of the fund’s market value, as opposed to funds that charge a download or sale fee.
  • Fees under 12b-1 include expenses for marketing and selling fund units, fees to brokers and other sellers of funds, and promotional expenses such as printing and mailing fund prospectuses to investors.
  • The once popular 12b-1 funds have lost investor interest in recent years, especially as exchange-traded funds (ETFs) and low-cost mutual funds rise.