Which of the Following Is Not Correct About the 12b-1

question 99

Multiple Choice

Which of the following is not correct about the 12b-1 fee?

• A) It is also known as a distribution fee.
• B) A no-load fund can charge a 12b-1 fee of up to 0.25% of its assets.
• C) It is often an ongoing fee that is charged on an annual basis.
• D) It needs to be disclosed in the annual report but not in the prospectus.
• E) It is used to defray the costs of advertising and marketing a mutual fund and commissions paid to a broker who sold shares in the mutual fund.