Accessibility Mutual fund shares are easy to buy. They are compensated for those services, generally through a fee for service, a sales commission, or through 12b-1 fees deducted from the fund's assets. Direct-marketed funds are sold through the mail, by telephone, or at office locations. They typically offer fund shares to the public with a low sales charge or none at all. Because direct-marketed funds do not usually offer specific investment advice, investors are required to do their own research and determine which funds meet their needs.
All mutual funds have fees and expenses that are paid by investors.
These costs are important because they affect the return on your investment, particularly over the long term. Before investing in a mutual fund, you should decide if the fund's costs are acceptable to you. While the amount you invest and your rate of return are unlikely to match the example, this standardized measure can be a useful way to compare the effect of fees for different funds. Shareholder fees include any commission paid to brokers when you buy or sell your shares. Both shareholder fees and annual operating expenses are shown in the fee table in the fund's prospectus.