If a mutual fund's published YTD return is 3%, and it has an up-front sales charge of 5% and a 12b1 fee of 2%, are these fees included in the YTD return, or would the "real" return be 3%-5%-2% = -4%?

  • 4
    There are lots of good no-load funds. There's no good reason to pay fees like those. – Pete Becker Dec 13 '15 at 18:56
  • Run. As Pete Becker says, there are way better options out there. – Peter K. Dec 13 '15 at 19:04
  • 5% up front charge? Yikes. – Joe Dec 14 '15 at 18:20

Generally the sales load are amortized over a period of time. The upfront sales load is taken out of the investment value. Hence quite a few Mutual funds the real return is not fully known unless one explicitly calculates the amount paid and the amount received as there are load at times of investment or at time of sale. More about various fees here.


Fees are one of the main reasons few funds can consistently beat the market. That said fund return is an advertising gimmick...almost none of them state return rate after fees.

  • 1
    Are you sure that returns don't already include the fees? The return of a mutual fund over N days is the percentage increase (or decrease) in the NAV share price over the N-day period, and the NAV is calculated each evening after the markets have closed and the expense ratio for the day has been subtracted from the fund assets. – Dilip Sarwate Dec 13 '15 at 20:59

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.