Final answer:
12b-1 funds must have a written plan that specifically states the distribution fees. This plan outlines the costs for marketing and selling fund shares, which is different from sales charges, redemption fees, and management fees, detailed in a fund's prospectus.
This correct answer is d.
Step-by-step explanation:
12b-1 funds are mutual funds that include a fee used for marketing and distribution costs. As per the regulatory requirements, these funds must have a written plan that explicates the fees charged.
In particular, the written plan must state the distribution fees. These are fees paid out of fund assets to cover expenses related to the marketing and selling of fund shares, including advertising costs, broker compensation, and payments to underwriters. 12b-1 plans often include service fees for providing ongoing service to shareholders.
The written plan does not specifically require details about sales charges, redemption fees, or management fees. However, these other types of fees are typically disclosed in the fund's prospectus.
Sales charges are one-time fees paid by the investor when purchasing shares, redemption fees are charged when shares are sold, and management fees are the costs for the fund's investment management and administration.
This correct answer is d.