12B-1 Fees
If you have a mutual fund, you may want to look at the 12B-1 fees. These are the fees that are accrued by the fund for marketing. It may often be 1-2% of the funds invested. It pays for television ads, magazine ads, and other marketing expenses.
This is a hidden fee. It is not disclosed up front. It can be found in the prospectus if you read it thoroughly. The fee shows up in your fund getting a lower rate of return. For example, if you mutual fund had a 12% rate of return for the year and there was a two percent 12B-1 fee, that means that your mutual fund would have had a 14% return without the 12B-1 fee.
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