Mutual Funds
A no-load mutual fund does NOT charge which of the following fees?
No-load = no sales charge. Still has management fees, admin costs, and up to 0.25% 12b-1.
Complete Analysis & Legal Rationale
A no-load fund does not charge sales charges (front-end or back-end loads). However, all mutual funds, including no-load funds, still charge management fees and administrative expenses. They may also charge 12b-1 fees up to 0.25% and still be considered no-load.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
All mutual funds charge management fees to compensate the portfolio manager.
Matches the verified teaching point in the explanation.
Administrative expenses are part of the operating costs all funds incur.
A fund can charge up to 0.25% in 12b-1 fees and still be classified as no-load.
Official Standard: Regulatory framework for investment companies including mutual funds (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.