What Is a 12B-1 Plan?

Business & Management
#1

A mutual fund company’s 12B-1 plan is a mechanism for the distribution of money through intermediaries. The agreements between distributors and intermediaries that help secure the sale of a fund are mapped out in 12B-1 plans. The key components driving a 12B-1 plan are sales commission schedules and 12B-1 distribution expenditures.