Page 24 - DCAC November 2023 Files

Following a Prudent Due Diligence Process

Typical Mutual Fund Expenses

• Expense Ratio: Total operating expense of the Potential Fee Example

fund, including investment management fees, Expense Ratio 0.35%
operating expenses, marketing/distribution, etc.
Revenue Sharing/Distribution Fee 0.25%
• Distribution Fee: May include 12b-1 fees, Revenue
Sharing, or other compensation paid to a third Total Expense 0.60%

party for distribution (sales) of the fund.

– Note: Not all funds contain 12b-1 or revenue
sharing fees. In some cases, revenue sharing Basis Points

may be refunded to participants in a

retirement plan. Mutual Fund and Recordkeeping fees are
small on a relative basis, often fractions of
• Fees listed above are deducted from the value of 1%. Industry professionals refer to these

the fund each day and are paid by investors. small numbers as “Basis Points”.

1% = 100 basis points

0.25% = 25 basis points

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