Closed End funds and Front End Load funds usually also charge what is known as a 12-b1 fee. The fund companies and those advisors who utilize those funds sometimes refer to that as an advertising fee.
The fund company will pay that to the advisor or broker who puts their clients in those funds.
So not only is the advisor charging you a fee based on the assets they manage for you, but they are also sharing in the expenses the fund company collects for managing the fund.
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