Mutual Funds and Hedge Funds

12b-1 fees, also sometimes called "distribution fees", pay for any marketing and advertising expenses that the fund incurs. They are called 12b-1 fees because that is the number of the SEC rule that allows mutual funds to charge them. No-load mutual funds often have higher 12b-1 fees because they do not charge sales commissions. You should always look at 12b-1 fees in conjunction with sales loads.