12B-1 Funds

Financial Definition of 12B-1 Funds

Meaning of 12B-1 Funds

Mutual funds that do not charge an upfront or back-end commission, but instead take out up to 1.25% of average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC’s Rule 12b-I (passed in 1980).

Related Entries of 12B-1 Funds in the Encyclopedia of Law Project

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12B-1 Funds in Historical Law

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Legal Abbreviations and Acronyms

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