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In fact, over time, the standard upfront sales charge for a mutual fund has dropped from a high of 8.5% in the 1990s to about 3% to 6% today. Many funds charge no load at all, and those that do ...
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Most states that close their prepaid tuition plans now administer other education savings plans instead. In Texas, the TGTP was replaced by a new prepaid plan in 2008. The Texas Tomorrow Fund will be reopened for new enrollment under a new name: [5] The Texas Tuition Promise Fund, which replaced the Texas Guaranteed Tuition Plan in 2008. [6]
Despite the positives, balanced funds have some downsides, too. Higher fees: Balanced funds come with higher expense ratios, the cost of owning the fund as a percentage of your investment in it ...
One notable component of the expense ratio of U.S. funds is the "12b-1 fee", which represents expenses used for advertising and promotion of the fund. 12b-1 fees are paid by the fund out of mutual fund assets and are generally limited to a maximum of 1.00% per year (.75% distribution and .25% shareholder servicing) under FINRA Rules. [7]
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