se A Understanding the Costs Involved in Mutual Fund Investments Edison is debating purchasing a mutual fund, but he has some questions for his financial advisor, Hilary. The following table presents information on four different open-end mutual funds that Edison and Hilary are discussing. 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 IntRAT 20.77 0.14 6.0 PFIN 29.81 0.28 8.5 BRRT 44.21 0.37 9.6 EDISON: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 12b-1 fees and fund performance? do not or always HILARY: Generally, funds that charge 12b-1 fees, such as QtrFP, outperform funds that do not charge these fees. EDISON: What about front-end load fees? For example, suppose BRRT has a front-end load fee of 7%, when do I pay this fee? , but when you sell these shares you HILARY: If you purchase 100 shares of this fund at the NAV, you will pay a commission of $ will pay $ in front-end fees. EDISON: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? HILARY: If a fund charges a 2.5% front-end load and a 4% 12-bi fee, then it can charge a maximum of only % in back-end load charges without violating the cap. back end load, low-load, no-load, front end load EDISON: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible. se A Understanding the Costs Involved in Mutual Fund Investments Edison is debating purchasing a mutual fund, but he has some questions for his financial advisor, Hilary. The following table presents information on four different open-end mutual funds that Edison and Hilary are discussing. 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 IntRAT 20.77 0.14 6.0 PFIN 29.81 0.28 8.5 BRRT 44.21 0.37 9.6 EDISON: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 12b-1 fees and fund performance? do not or always HILARY: Generally, funds that charge 12b-1 fees, such as QtrFP, outperform funds that do not charge these fees. EDISON: What about front-end load fees? For example, suppose BRRT has a front-end load fee of 7%, when do I pay this fee? , but when you sell these shares you HILARY: If you purchase 100 shares of this fund at the NAV, you will pay a commission of $ will pay $ in front-end fees. EDISON: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? HILARY: If a fund charges a 2.5% front-end load and a 4% 12-bi fee, then it can charge a maximum of only % in back-end load charges without violating the cap. back end load, low-load, no-load, front end load EDISON: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible