what 12b 1 fees are used for
the distribution fee covers marketing and paying brokers who sell shares they also go toward advertising the fund and mailing fund literature and prospectuses to clients shareholder service fees another form specifically pay for the fund to hire people to answer investor inquiries and distribute information when necessary though these fees may be required without the adoption of a 12b 1 plan another category of fees that can be charged is known as other expenses other expenses can include costs associated with legal accounting and administrative services they may also pay for transfer agent and custodial fees 