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12b-1 fee

An extra fee charged by some mutual funds to cover promotion, distributions, marketing expenses, and sometimes commissions to brokers. A genuine no-load fund does not have 12b-1 fees, although some funds calling themselves /quot;no-load/quot; do have 12b-1 fees (as do some load funds). 12b-1 fee information is disclosed in a fund's prospectus, is included in the stated expense ratio, and is usually less than 1%.

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Baden Business News is provided with the understanding that it does not provide an accounting, tax or legal service. Contact a qualified professional with any questions or concerns about the information presented in this newsletter to investigate how it may apply to your specific situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer.