Question: 1st drop down options are: a) always b) do not necessarily 2nd drop down, question 4 optiona are: a) no-load b) low-load c) front-end load
Sean is debating purchasing a mutual fund, but he has some questions for his financial advisor. Yvette. The following table presents information on four different open-end mutual funds that Sean and Yvette are discussing. Use the information in the table to answer the questions that follow. FUND NAV NET CHG 0.01 YTD % RET 3.2 18.32 Mint Pwr SLP 29.77 0.11 6.1 MRGG 27.81 0.25 8.6 Majtrk 43.21 0.34 9.7 SEAN: After some research, I've narrowed it down to these four funds, but can you explain to me therelationship between 126-1 fees and fund performance? YVETTE: Generally, funds that charge 12b-1 fees, such as Mint D, do not necessarily outperform funds that do not charge these fees. SEAN: What about front end load fees? For example, suppose Majtrk has a front-end load fee of 8%, when do I pay this fee? YVETTE: If you purchase 100 shares of this fund at the NAV, you will pay a commission of 5 will pay 5 in front-end fees 1. but when you sell these shares you SEAN: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? YVETTE: If a fund charges a 2% front-end load and a 4% 12-b1 fee, then it can charge a maximum of only charges without violating the cap. 9e in back-end load SEAN: Thanks This was really helpful. So it sounds like you'd recommend looking for funds whenever possible. Sean is debating purchasing a mutual fund, but he has some questions for his financial advisor. Yvette. The following table presents information on four different open-end mutual funds that Sean and Yvette are discussing. Use the information in the table to answer the questions that follow. FUND NAV NET CHG 0.01 YTD % RET 3.2 18.32 Mint Pwr SLP 29.77 0.11 6.1 MRGG 27.81 0.25 8.6 Majtrk 43.21 0.34 9.7 SEAN: After some research, I've narrowed it down to these four funds, but can you explain to me therelationship between 126-1 fees and fund performance? YVETTE: Generally, funds that charge 12b-1 fees, such as Mint D, do not necessarily outperform funds that do not charge these fees. SEAN: What about front end load fees? For example, suppose Majtrk has a front-end load fee of 8%, when do I pay this fee? YVETTE: If you purchase 100 shares of this fund at the NAV, you will pay a commission of 5 will pay 5 in front-end fees 1. but when you sell these shares you SEAN: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? YVETTE: If a fund charges a 2% front-end load and a 4% 12-b1 fee, then it can charge a maximum of only charges without violating the cap. 9e in back-end load SEAN: Thanks This was really helpful. So it sounds like you'd recommend looking for funds whenever possible
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