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Funds 107: Mutual Fund Expenses

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1.
Which of the following is not a cost covered by a mutual fund's 12b-1 fees?
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Management expenses. These are not covered by 12b-1 fees, but by their own fees.
2.
One reason to choose a low-cost bond fund over a higher-cost bond fund is that bond fund returns don't differ very much anyway, so you may as well save on expenses.
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True. Bond fund returns don't vary all that much. Many investors find that every dollar going to expenses will hurt their return noticeably.
3.
Redemption fees cover the _______ of mutual fund shares.
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Selling. Redemption fees are charged when you sell, or redeem, shares back to a fund.
4.
Sales charges cover the ________ of mutual fund shares.
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Buying and selling. Sales charges are levied for both buying and selling shares.
5.
If you transfer money from mutual fund A into mutual fund B, you may be charged a(n) _______ fee.
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Exchange. Exchange fees cover the movement of money between funds.