Understanding the Costs Involved in Mutual Fund Investments ols Gilberto is debating purchasing a mutual tand, but he has some questions for his financial advisor Juanita. The following table presents information on four different open-end mutual funds that Gilberto and anita are discussing. Use the information in the table to answer the questions that follow FUND GbExp NAV 12.32 12.27 YTD RET 28 PwiSL NET CHG -0.03 0.07 0.21 0.30 5.7 PFIN 8.2 BRRT 4121 93 GILBERTO: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 125-1 fees and fund performance 121 JUANITA: Generally, funds that charge 12-t fees, such as GDEX D. outperform funds that do not charge these fees GILBERTO: What about front-end food feesFor example, suppose BRT has a front-end load Tee of 7, when do I pay this fee? JUANITA If you purchase 100 shares of this fund at the NAV, you will pay a common of w in front-end fees .but when you sell these shares you GILBERTO. It sounds like these fees could start to add up. What the most I can expect to pay in the JUANITA If a fund charges a front-end load and a 12-01 fee, then it can charge a maximum of only charges without violating the cap in backend load GILBERTO: Tha This was really help sound like you'd recommend looking for funds whenever possible it down to these four funds, but can you explain to me the relationship E es, such as GlbEx P. outperform funds that don do not necessarily example, suppose B load fee of 7%, when do I pay thi always 1 at the NAV, you will pay o COTTITISSIOm of but when you . add up. What's the most I can expect to rge these ble, suppose BRRT has a front-end load fee of 7%, when do I pay this fee? e NAV, you will pay a commission of s but when you sell these shar front-end load up. What's the most I can expect to no-load 3% 12-b1 fee, then it can charge low-load nly % in back-end load back-end load like you'd recommend looking for funds whenever possible