What is non 12b1 service fee?

A non-12b-1 service fee is a charge applied by financial firms that is not related to the 12b-1 fees typically associated with mutual funds, which are used to cover marketing and distribution costs. Instead, these fees may cover other services, such as account maintenance or advisory services, and can be assessed as a flat fee or a percentage of assets under management. Unlike 12b-1 fees, which are ongoing and tied to fund performance, non-12b-1 service fees may vary based on the specific services provided. It's important for investors to understand these fees, as they can impact overall investment returns.