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Mutual Funds

Fund Expenses

Mutual funds can carry a variety of fees. These fees are highly regulated by federal laws and can be important to consider when selecting your fund.

Common mutual fund fees

  • Load Refers to a fee that the investment charges the investor. Loads can range from 1% to 6% depending on whether they're taken up front or at the back end.
  • Annual management fees Range anywhere from 1% to 3% per year of the assets under management. All funds carry an internal annual management fee; there may be an additional management fee depending on the structure of the investment.
  • Marketing fees, or trailers Vary by type, but the most common marketing fee is the the 12(b).1 fee. Usually these fees are assessed annually and for some share classes, they may be higher during the first five to seven years you're in an investment.
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Last Updated: 11/28/2003