What is a 12b-1 fee? Suppose that you have a choice between two mutual funds, one a load fund with no annual 12b-1 fees, and the other a no-load fund with a maximum 12b-1 fee. How would the length of your expected holding period influence your choice between these two funds?
Answer to relevant QuestionsWhy did the proportion of equities in long-term mutual funds increase from 38.3 percent in 1990 to 70.0 percent in 2007 and decrease back to 55.5 percent in 2008? How might an investor’s preference for a mutual fund’s ...What are the different categories of hedge funds?Suppose today a mutual fund contains 2,000 shares of J. P. Morgan Chase, currently trading at $ 46.75, 1,000 shares of Walmart, currently trading at $ 70.10, and 2,500 shares of Pfizer, currently trading at $ 27.50. The ...Describe the trend in assets invested in 401(k) plans in the 1990s and 2000s.Your employer uses a flat benefit formula to determine retirement payments to its employees. The fund pays an annual benefit of $ 2,500 per year of service. Calculate your annual benefit payments for 25, 28, and 30 years of ...
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