The proposal would limit the cumulative sales fee paid over the life of an investment to the highest one charged by the fund for shares that have an upfront sales fee, also known as a load fee.
Documents show that Becton Dickinson agreed to pay the special $1 million fee to Novation as well as a 3percentt sales fee.
"It stuns me how many folks currently pay a sales fee to buy a high-expense mutual fund over which they have no tax control," he said.
For example, if one class of a fund's shares charges a 4 percent front-end sales fee, investors in other classes of the same fund's could not be charged more than 4 percent of their investment over time.
Purchasers otherwise pay additional standard shipping fees as for any item at Amazon.Amazon also takes a sales fee of 15% on toys, games and media; some categories come with as little as a 8% cut.
In insurance, there is a possible problem when a financial adviser, who has a fiduciary duty to a client, is tempted to push an in-house product that would generate not only a sales fee but also a running management charge.
This fund doesn't charge a sales fee.
Robert K: There's a 3.5% sales fee on the site.
The sales fee is up to 2%, depending on the length of the investment.
Vanguard charges no sales fee on its S&P 500 Index Trust.
Fangman and Edwards pocketed an estimated 6.75% of Mitton's investment, or $25,900, as a sales fee.
