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Distribution Fees

Distribution Fees are used primarily to cover marketing and selling fund shares. This is an ongoing fee that helps buyers and sellers to find and sell specific fund shares. Distribution Fees are considered an operational expense, helping to cover the day to day operational expenses that come with managing the fund assets effectively. These fees will also cover broker’s compensation and others who aid in selling the fund shares as well as advertising costs and any other associated fees including printing and distributing information to potential investors. Distribution Fees were originally designed to lower the cost of managing fund shares by consolidating a variety of operational costs into one fee, thus making it easier for investors to deduct them from their taxes. This consolidated fee keeps the investor’s taxable income to a minimum. Although these fees are still being used with medium-ranged investments as an incentive, it is now considered to have no effect on the overall cost. It is always best to the weigh cost against benefits before committing to any investment.

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