4. Comparing mutual funds

Understanding the Costs Involved in Mutual Fund Investments

The following table presents information on four different open-end mutual funds. Use the information in the table to answer the questions that follow.

FUND	NAV	NET CHG	YTD % RET
QtrF p	13.32	0.04	3.1
TmRE r	20.77	0.14	6.0
MRGG	29.81	0.28	8.5
MajTrk	44.21	0.37	9.6

The mutual fund charges a 12b-1 fee.

True or False: You can generally expect funds that charge 12b-1 fees to outperform funds that do not charge these fees.

True

False

Suppose MajTrk has a front-end load fee of 7%. If you purchase 100 shares of this fund at the NAV, you will pay a commission of ? $

If, in one month, you sell the shares, you ? will not or will also pay a redemption fee at that time.

If you are interested only in funds without any fee, you ? will need or do not need to use additional online resources to find no-load funds, because using only the quotations as listed in the table, it is ? very easy or impossible to determine the amount of any front-end load fee that the fund may charge.