What are 12b-1 Fees?

A mutual fund that charges 12b-1 fees may use the money to cover: promotion and printing costs costs sales costs, sales fees financial adviser fees, advertising costs

12b-1 fees may not be used to pay for the portfolio manager's fees, only for sales promotions and fees, and other activities relating to the distribution, advertising and printing of the fund's shares.

Typical 12b-1 Fees for A share mutual funds are .25%. Some charge .35%. So if you have 1,000 dollars invested you are paying $2.50 per year in advertising fees.