SIE practice questioneasyMutual Fund Fees
A mutual fund's 12b-1 fee is primarily used to cover:
- APortfolio transaction costs
- BMarketing and distribution expenses✓ Correct answer
- CCustodial and legal fees
- DManagement fees owed to the advisor
Explanation
Why B — Marketing and distribution expenses
A 12b-1 fee is used for distribution, marketing, and certain shareholder servicing expenses. It is separate from portfolio transaction costs, custody/legal expenses, and the adviser's management fee.
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