Mutual fund fees work differently depending on the type of fee charged. The main two costs are ongoing operating fees and shareholder fees. Both fees are usually paid by the investor with the ongoing fees paying for the administration of the fund and shareholder fees covering transaction costs. Shareholder fees are linked to investors’ transactions when buying, selling and exchanging mutual fund shares. These mutual fund fees work by paying sales commissions to brokerages and financial advisors, as well as covering other one-time costs. Shareholder fees include: Sales Loads Purchase fees Exchange fees Redemption fees Account fees Ongoing operating fees on the other hand are incredibly common and are associated with all mutual funds. These fees fall under the management expense ratio. Good to know Sales loads are the commissions paid to financial advisors and can be expensive. When purchasing mutual funds through an advisor, always ask for a full breakdown of all charges.