Hypothetical scenario: let’s say that I currently own $100,000 of a Mutual Fund, C shares, that was purchased with the advice of my financial advisor. The Mutual Fund has a Gross Expense Ratio of 1.4% and a Net Expense Ratio of 1.3%. Because the shares are C class, I am aware I am likely paying a 1% 12b-1 fee.
Is this 1% included in the Gross and Net Expense Ratio, or is this 1% in addition to the 1.4% and 1.3% respectively?
For example purposes let’s say that it’s included and I am paying 1.3% total. Does my advisor receive the 1% 12b-1 annual fee as a commission? And the person managing the fund get the other .3% (net expense ratio)?
Submitted July 27, 2018 at 06:16PM by Planet12838adamsmith https://ift.tt/2NMum6r
