Fees and Expenses Mutual funds provide a number of conveniences to investors, including professional management of investments. In order to provide these services to shareholders, mutual fund companies establish management fees and operating expenses on each of the funds.
Mutual funds are considered either load funds or no-load funds1. A load is simply a sales charge or commission that the fund may charge when you buy or sell shares. A commission charged when you buy a fund is called a front-end load; a charge when you sell is known as a back-end load. No-load funds, on the other hand, don't charge a sales commission if you buy them directly from the fund companies. Other fees and expenses may include:
Management FeeAll funds load and no-load funds alike charge a management fee to cover the costs of managing the fund. Investors don't pay this fee directly; instead, it is calculated into the fund's share price (or NAV) every day. Management fees differ from one fund to another.
Fund Operating ExpensesOperating expenses are charged by most funds to cover the cost to print and mail required materials to shareholders. These fees are in addition to the fund's management fee.
12b-1 Fees12b-1 fees are annual fees that some fund companies charge to cover miscellaneous marketing costs such as advertising and other costs of promoting the fund.
Transaction FeesFunds may institute additional fees to cover transaction costs or to alleviate operating expenses. These fees are assessed against individual shareholders for specific actions. For example, certain funds may have a redemption fee in order to discourage market timing or excessive transactions that may have a negative impact on the fund.
Wells Fargo Advantage Funds® has a wide variety of mutual funds to choose from. Information on fees and expenses is available within each fund's prospectus. If you have additional questions, please contact a representative at 1-800-359-3379, 24 hours a day, 7 days a week.