The Securities and Exchange Commission will be reviewing 12B-1 fees this year for mutual funds, which were introduced in the 1980s when mutual funds were facing hard times. 12B-1 fees are, according to Investopedia:
A provision that allows a mutual fund to collect a small fee from investors. This fee is designated for promotions, sales, or any other activity connected with the distribution of the fund's shares. The fee must be reasonable: 0.5% to 1% of the fund's net assets, and up to a maximum of 8.5% of the offering price per share.
Nearly any reputable resource on mutual funds is clear about how investors should handle them: Do not buy mutual funds with 12B-1 fees. Given that the fees are fully disclosed, it's hard for me to understand why the SEC would need to look into them again. Are the fees ridiculous and stupid, and something investors should avoid? Of course. Are most mutual funds ridiculous and stupid, and something that investors should avoid? Probably.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
