drop down options:

1. always / do not necessarily

2. no-load / low-load / back-end load / front-end load

Understanding the Costs Involved in Mutual Fund Investments Jacques is debating purchasing a mutual fund, but he has some questions for his financial advisor, Kyoko. The following table presents information on four different open-end mutual funds that Jacques and Kyoko are discussing. Use the information in the table to answer the questions that follow. JACQUES: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 12b-1 fees and fund performance? KYOKO: Generally, funds that charge 12b1 fees, such as QtrF p, outperform funds that do not charge these fees. JACQUES: What about front-end load fees? For example, suppose MajTrk has a front-end load fee of 7%, when do I pay this fee? KYOKO: If you purchase 100 shares of this fund at the NAV, you will pay a commission of , but when you sell these shares you will pay in front-end fees. JACQUES: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? KYOKO: If a fund charges a 2.5% front-end load and a 4%12b1 fee, then it can charge a maximum of only charges without violating the cap. JACQUES: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible