Income Mutual Fund Fees

Mutual fund fees and expenses are charges that may be incurred by investors who hold mutual funds.

Income mutual fund fees. At present mutual funds cannot charge entry load. Mutual fund transaction fees transaction fees are trading expenses charged to the investor when buying or selling shares of stocks mutual funds or exchange traded funds etfs. These fees are deducted directly from the fund s assets i e the investor does not see the fee on bank or brokerage statements. The charge for the next 50 000 purchased is 4 75 then drops to 3 75 for purchases of 100 000 to 250 000 and so on until the sales charge disappears usually for a purchase of 1 million or more.

Operating a mutual fund involves costs including shareholder transaction costs investment advisory fees and marketing and distribution expenses. There are no fixed exit loads which are charged. The financial industry regulatory authority finra limits the size of these 12b 1 fees to 1. The current practice is the funds could charge any way from 0 50 to 3 00.

Funds typically pay t. Some funds impose shareholder fees directly on investors whenever they buy or sell shares. The mutual fund would sell the unit price higher than the nav. These fees can be as low as 7 at some discount brokers such as scottrade or charles schwab but they can be much higher depending upon the investment and or the broker.

The mutual fund would buy back the units at rate lower than the nav. For example a fund might have an initial sales charge of 5 75 for class a shares for purchases of up to 50 000. In addition every fund has regular recurring fund wide operating expenses.