Online brokerage E-Trade Group announced yesterday that it would begin giving customers half of its mutual fund fees later this year. The firm estimates that a $500,000 mutual fund investment generates about $2,000 annually in so-called “12b-1” and “Shareholder Service Agreement” fees – and that half of that would be returned to the account owner in twice-annual payments. However, E-Trade acknowledges it still hasn’t ironed out all the details with all the mutual funds that it hopes to distribute – and notes that some aren’t keen on the notion, which could focus attention on fund fees.
E-Trade To Rebate Half Mutual Fund Fees To Customers
Online brokerage E Trade Group announced yesterday that it would begin giving customers half of its mutual fund fees later this year. The firm estimates that a $500,000 mutual fund investment generates about $2,000 annually in so called "12b 1"
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