There is a confusing array of expenses and fees that an investor can encounter when shopping for and comparing mutual funds. Because these expenses and fees all reduce investor's returns, shareholders should pay close attention to expense ratios and fees.


The expense ratio of a mutual fund is the amount, expressed as a percentage of total investments, that shareholders pay for the fund's operating expenses and management fees. These costs may range from under 0.25% to more than 2% of a fund's net assets. A lower expense ratio is generally better because this money is taken out of the fund's current income, The expense ratio is disclosed to the shareholders in the fund's annual report. Note: A fund's sponsor may temporarily waive its management fee or absorb all operating expenses to enhance the fund's current yield. This practice is common with new funds and is used as a device to make a fund look better to someone comparing fund yields. If the fund charges a 12b-1 fee, these costs are included in the expense ratio.

Fee/Charge	Charged by all Fund Companies	Included in the Expense Ratio
Load	No	No
Expense Ratio	Yes	--
Redemption Fee	No	No
12b-1 fee	No	Yes
Service Fee	No	Yes

Buyers of some mutual funds must pay a sales charge (load) on the fund shares purchased. Loads come in different forms and are not included in the fund's expense ratio. The justification for a load is the same as any other product sold by a commissioned salesperson. The salesperson will explain the fund to the customer, and advise him or her when it is appropriate to sell the fund, as well as when to buy more shares.

1. Front-End Load - This is a sales charge or commission applied to an investment at the time of the initial share purchase. Front-end loads typically range from 4% to 7% and effectively reduce the amount of money that you invest. Loads may also be charged when you reinvest dividends in additional shares. A "no-load" fund doesn't have any front-end sales charges, while "low-load" refers to a fund that charges 1% to 3% of the amount that is invested.


2. Back-End Load - This is a charge incurred at the time you redeem fund shares. The load may be levied as a percentage of the redemption amount or at a flat rate. Back-end loads are sometimes called redemption or exit fees. A deferred sales charge can impose a 5% to 6% charge against the redemption amount on withdrawals made during the first year the shares are owned. The percentage is typically reduced at a rate of 1% per year over a period of five to six years. For example, in your third year as a shareholder, a deferred sales charge that started at 6% could decline to 4%. The charge is usually eliminated by the seventh year.


3. 12b-1 Plan Fee - A method used by some funds to recover marketing and distribution costs by charging them directly against fund assets. 12b-1 fees range from 0.25% to 1.0% of assets annually. Funds are required to include a 12b-1 charge in the stated expense ratio.


4. Exchange Fee - A charge levied when you exchange shares from one fund to another within a fund family. Exchange fees are generally assessed at a flat rate. Many funds do not charge exchange fees, instead offering free exchange privileges. The brokerage firm may still charge an exchange fee for handling the paperwork, even if the fund family does not. Since a brokerage firm typically offers many fund families, exchanges of no-load funds are possible on a much larger selection of funds than those offered by just one family.

How do you determine if a fund is charging a load, redemption fee, or a 12b-1 plan fee? It's easy -- check the mutual fund listing in most newspapers. Newspaper listings generally carry two "prices" for mutual funds -- a sell price and a buy price.

A fund's sell price is its closing share price, called net asset value (NAV), an it is the amount per share you would receive if you had sold shares.

A fund's buy price (also called the offering price) is the amount you would pay per share, including sales charges, if you had purchased shares.

To calculate a fund's sales load, take the difference between the sell price and the buy price, and then divide by the buy price. For example, a fund with a $6.56 sell price and a $6.85 buy price has a 4.25% load.

Other typical newspaper abbreviations include:

Abbreviation	Meaning
NL (no-load)	Indicates funds that do not charge a load. This abbreviation is listed in the offering price column.
r	Denotes a redemption fee or deferred sales charge (back-end load).
p	Indicates funds that have 12b-1 distribution charges.
t	Indicates both redemption and 12b-1 fees are charged by the fund.

Important Notice: Performance data for the Mutal Fund Mall is provided by Morningstar, Inc., an independent firm that tracks the investment industry. Although gathered from reliable resources, Morningstar cannot guarantee completeness and accuracy. Fund information and data includes sales charges or transaction fees and assume reinvestment of dividends and capital gains at net asset value. A free prospectus for mutual funds containing more complete information, including management fees and other expenses, in available upon request. unds are offered by prospectus only. As with any investment, you should always carefully read the prospectus and make sure you understand it fully. Investigate before you invest is always good investment practice. Mesirow Financial provides recordkeeping and shareholder services for shares purchased and/or held in accounts. BestVest Investments, Ltd. receives remuneration from participating fund companies for NTF funds. Returns will vary and shares may be worth more or less than their original cost when sold. This and other information on mutual funds is provided for general informational purposes only. Also remember that market volatility can significantly impact short-term performance. Results of an investment made today may differ substantially from the historical performance shown.