Page 38 - DecDefComp

Mutual Fund and Recordkeeping fees are
small on a relative basis, often fractions of
Example
1%. Industry professionals refer to these
0.75%
0.25%
0.15%
0.35%
0.25% = 25 basis points
1% = 100 basis points
small numbers as “Basis Points”.
Basis Points
Revenue Sharing/Distribution Fee
Total Expense
Potential Fee
Expense Ratio
Advisory Fee
Typical Mutual Fund Expenses
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Total operating expense of the
May include 12b‐1 fees,

Expense Ratio: fund, including investment management fees, operating expenses, marketing/distribution, etc. Distribution Fee: Revenue Sharing, or other compensation paid to a third party for distribution (sales) of the fund. –Note: Not all funds contain 12b‐1 or revenue sharing fees. In some cases, revenue sharing may be refunded to participants in a retirement plan. Advisory Fee: Some retirement plan recordkeepers charge a wrap advisory fee in addition to the other potential fees listed above. Fees listed above are deducted from the value of the fund each day a

Mutual Funds • • • •