This isn't usually in your best interest as an investor, so Fools favor no-load funds. These often fare better than load funds and have lower expense ratios, too. With no-load funds, you just need to focus on the expense ratio. Chairs, computers, catered holiday parties, and other administrative costs that support the fund are included in this annual fee. The 12b-1 fee is defined as covering marketing expenses, but it's essentially a continual load in the form of an annual sales charge.
Management fees pay for fund manager salaries.
Index funds, which the Fool recommends for investors who want to invest in mutual funds, typically sport very low fees and outperform most other funds. A. Inventory refers to all items in a company's production pipeline. Imagine PlastiCrania Inc. Making the toys involves ordering, receiving, storing, and using raw materials, such as chemicals, cardboard, and paint. These are assembled into finished products.