There are specific rules and regulations that 12b 1 fund companies have to comply with. The cost or fee is used to pay the costs associated with attracting new investors into the fund.

Companies with this type of SEC set up have been around for many years. As with any other investment vehicle, choice in an investors best decision maker. Some shareholders do not want to pay traditonal sales charges, whenther front end or back end. There is a strong market for 12b 1 fee structures.

As with any mutual fund plan, the fee involved in these funds should only make up part of your decision to invest. Many 12b 1 mutual funds offer greater returns than others. Investing in funds should involve many aspects in your decision.

• Who is the sponsor or owner of the company?
• What are the historical rates of return?
• What is the objective of the fund?
• Does the 12b fee more than make up for the attractiveness of the mutual fund?

Copyright 2006 American Investment Training, Inc.