Trailer Fee
A fee that a mutual fund manager pays to a salesperson who sells the fund to investors. The trailer fee pays the salesperson for providing the investor with ongoing investment advice and services.
Also known as a "trailer commission". Investopedia Says:
It is important to know whether your mutual fund salesperson is receiving a trailer fee because it may cause him or her to try to sell you a particular fund not because it is a good investment but because selling it to you will make him or her money. This fee is paid annually for as long as the investor holds shares in the fund. Related Terms:
12b-1 Fees
Commission
Expense Ratio
Mutual Fund
No Transaction Fee Mutual Fund |