The reform does not touch the mutual fund fee

18 Aug 2010

Every mutual fund holder should pay the fee to the mutual fund company. Sometimes the fee incriminate the investors. The return is also decrease. One of the fee is 12b-1 fee or people name it “marketing”, or “distribution expenses”. SEC proposed a new rule that the company should disclose the fee. According to the government financial reform misses the mark.
Unfortunately, the proposal misses how the mutual company pay the broker in their sales effort. The company should pay the broker but where the money come? Is the fund company get the compensation from company which the fund company invest in it? You can see further at the links

TAGS mutual fund broker fee mutual fund fee 12b-1 fee



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