Drop-down options: always or do not necessarily

Drop-down options: low-load, front-end, back-end loan, or no-load

4. Comparing mutual funds Understanding the Costs Involved in Mutual Fund Investments Hubert is debating purchasing a mutual fund, but he has some questions for his financial advisor, Kate. The following table presents information on four different open-end mutual funds that Hubert and Kate are discussing. Use the information in the table to answer the questions that follow. FUND NAV NET CHG YTD % RET GIbExp 13.32 0.04 3.1 Pwrser 20.77 0.14 6.00 MRGG 29.81 0.28 8.5 TopLA 44.21 0.37 9.6 HUBERT: 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? KATE: Generally, funds that charge 12b-1 fees, such as GlbEx P. outperform funds that do not charge these fees. HUBERT: What about front-end load fees? For example, suppose TopLA has a front-end load fee of 7%, when do I pay this fee? but when you sell these shares KATE: If you purchase 100 shares of this fund at the NAV, you will pay a commission of $ you will pay $ in front-end fees. HUBERT: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? % in back-end load KATE: If a fund charges a 2.5% front-end load and a 4% 12-b1 fee, then it can charge a maximum of only charges without violating the cap. HUBERT: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible. 4. Comparing mutual funds Understanding the Costs Involved in Mutual Fund Investments Hubert is debating purchasing a mutual fund, but he has some questions for his financial advisor, Kate. The following table presents information on four different open-end mutual funds that Hubert and Kate are discussing. Use the information in the table to answer the questions that follow. FUND NAV NET CHG YTD % RET GIbExp 13.32 0.04 3.1 Pwrser 20.77 0.14 6.00 MRGG 29.81 0.28 8.5 TopLA 44.21 0.37 9.6 HUBERT: 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? KATE: Generally, funds that charge 12b-1 fees, such as GlbEx P. outperform funds that do not charge these fees. HUBERT: What about front-end load fees? For example, suppose TopLA has a front-end load fee of 7%, when do I pay this fee? but when you sell these shares KATE: If you purchase 100 shares of this fund at the NAV, you will pay a commission of $ you will pay $ in front-end fees. HUBERT: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? % in back-end load KATE: If a fund charges a 2.5% front-end load and a 4% 12-b1 fee, then it can charge a maximum of only charges without violating the cap. HUBERT: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible