alleryStart learning →Who pays a 12b-1 fee, and what does it affect?
AThe investor; it raises the price
BThe fund; it reduces net asset value
CThe broker; it reduces commissions
DThe regulator; it reduces taxes
Answer & Solution
Correct answer: B. The fund; it reduces net asset value
Because it is paid from fund assets, the 12b-1 fee lowers the fund's NAV rather than being billed to the investor.
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