Understanding the Costs Involved in Mutual Fund Investments Jake is debating purchasing a mutual fund, but he has some questions for his financial advisor, Latasha. The following table presents information on four different open-end mutual funds that Jake and Latasha are discussing. Use the information in the table to answer the questions that follow. FUND NAV NET CHG YTD % RET QtrF p 17.32 0.03 3.0 PwrSLr 15.77 0.13 5.9 PFIN 40.81 0.27 8.4 BRRT 39.21 0.36 9.5 JAKE: 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? LATASHA: Generally, funds that charge 12b-1 fees, such as QtrFP. outperform funds that do not charge these fees. JAKE: What about front-end load fees? For example, suppose BRRT has a front-end load fee of 6%, when do I pay this fee? commission of , but when you sell these shares LATASHA: If you purchase 100 shares of this fund at the NAV, you will pay you will pay $ in front-end fees. JAKE: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? % in back-end load LATASHA: If a fund charges a 2.5% front-end load and a 2.5% 12-b1 fee, then it can charge a maximum of only charges without violating the cap. JAKE: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible. Understanding the Costs Involved in Mutual Fund Investments Jake is debating purchasing a mutual fund, but he has some questions for his financial advisor, Latasha. The following table presents information on four different open-end mutual funds that Jake and Latasha are discussing. Use the information in the table to answer the questions that follow. FUND NAV NET CHG YTD % RET 0.03 3.0 17.32 QtrF p PwrsLT 15.77 0.13 5.9 PFIN 40.81 0.27 8.4 BRRT 39.21 0.36 9.5 JAKE: 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? LATASHA: Generally, funds that charge 12b-1 fees, such as QtrF p. outperform funds that do not charge these fees. do not necessarily JAKE: What about front-end load fees? For example, suppose BRRT fee of 6%, when do I pay this fee? always LATASHA: If you purchase 100 shares of this fund at the NAV, you will pay a commission of $ but when you sell these shares you will pay $ in front-end fees. JAKE: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? % in back-end load LATASHA: If a fund charges a 2.5% front-end load and a 2.5% 12-b1 fee, then it can charge a maximum of only charges without violating the cap. JAKE: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible. 17.32 0.03 3.0 QtrF p PwrsLr 15.77 0.13 5.9 PFIN 40.81 0.27 8.4 BRRT 39.21 0.36 9.5 JAKE: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 126-1 fees and fund performance? LATASHA: Generally, funds that charge 12b-1 fees, such as QtrF p. outperform funds that do not charge these fees. JAKE: What about front-end load fees? For example, suppose BRRT has a front-end load fee of 6%, when do I pay this fee? LATASHA: If you purchase 100 shares of this fund at the NAV, you will pay a commission of $ but when you sell these shares you will pay $ in front-end fees. front-end load JAKE: It sounds like these fees could start to add up. What's the most I can expect to back-end load LATASHA: If a fund charges a 2.5% front-end load and a 2.5% 12-b1 fee, then it car no-load um of only % in back-end load charges without violating the cap. low-load JAKE: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible. Understanding the Costs Involved in Mutual Fund Investments Jake is debating purchasing a mutual fund, but he has some questions for his financial advisor, Latasha. The following table presents information on four different open-end mutual funds that Jake and Latasha are discussing. Use the information in the table to answer the questions that follow. FUND NAV NET CHG YTD % RET QtrF p 17.32 0.03 3.0 PwrSLr 15.77 0.13 5.9 PFIN 40.81 0.27 8.4 BRRT 39.21 0.36 9.5 JAKE: 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? LATASHA: Generally, funds that charge 12b-1 fees, such as QtrFP. outperform funds that do not charge these fees. JAKE: What about front-end load fees? For example, suppose BRRT has a front-end load fee of 6%, when do I pay this fee? commission of , but when you sell these shares LATASHA: If you purchase 100 shares of this fund at the NAV, you will pay you will pay $ in front-end fees. JAKE: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? % in back-end load LATASHA: If a fund charges a 2.5% front-end load and a 2.5% 12-b1 fee, then it can charge a maximum of only charges without violating the cap. JAKE: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible. Understanding the Costs Involved in Mutual Fund Investments Jake is debating purchasing a mutual fund, but he has some questions for his financial advisor, Latasha. The following table presents information on four different open-end mutual funds that Jake and Latasha are discussing. Use the information in the table to answer the questions that follow. FUND NAV NET CHG YTD % RET 0.03 3.0 17.32 QtrF p PwrsLT 15.77 0.13 5.9 PFIN 40.81 0.27 8.4 BRRT 39.21 0.36 9.5 JAKE: 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? LATASHA: Generally, funds that charge 12b-1 fees, such as QtrF p. outperform funds that do not charge these fees. do not necessarily JAKE: What about front-end load fees? For example, suppose BRRT fee of 6%, when do I pay this fee? always LATASHA: If you purchase 100 shares of this fund at the NAV, you will pay a commission of $ but when you sell these shares you will pay $ in front-end fees. JAKE: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? % in back-end load LATASHA: If a fund charges a 2.5% front-end load and a 2.5% 12-b1 fee, then it can charge a maximum of only charges without violating the cap. JAKE: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible. 17.32 0.03 3.0 QtrF p PwrsLr 15.77 0.13 5.9 PFIN 40.81 0.27 8.4 BRRT 39.21 0.36 9.5 JAKE: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 126-1 fees and fund performance? LATASHA: Generally, funds that charge 12b-1 fees, such as QtrF p. outperform funds that do not charge these fees. JAKE: What about front-end load fees? For example, suppose BRRT has a front-end load fee of 6%, when do I pay this fee? LATASHA: If you purchase 100 shares of this fund at the NAV, you will pay a commission of $ but when you sell these shares you will pay $ in front-end fees. front-end load JAKE: It sounds like these fees could start to add up. What's the most I can expect to back-end load LATASHA: If a fund charges a 2.5% front-end load and a 2.5% 12-b1 fee, then it car no-load um of only % in back-end load charges without violating the cap. low-load JAKE: Thanks! This was really helpful. So it sounds like you'd recommend looking for funds whenever possible