A trailer fee is the annual service commission paid by the mutual fund company to the mutual fund sales representative. This fee is paid as long as you hold units in the fund. These fees generally range between 0.25% and 1% and are paid out of the fund's management expenses. A trailer fee is a service commission. This means the salesperson should be providing the purchaser of the funds with ongoing services such as answering any questions you may have about the performance of your fund(s), and other related matters.
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