Question of the Week: What are Series F mutual funds?

Last week we continued our look at mutual funds series with a look at Series D funds. The previous week we also looked at Series A, B & C funds. This week we continue our look at mutual funds series with Series F mutual funds. As we noted last week, while the series we are highlighting are the most common types of mutual funds series offered by investment firms there is no standard letter designations which investment firms must use. Be sure to check what letter designations your investment firms use and what they mean.

Series F funds, also known as Fee-based Series Funds, are purchased by investors who have fee-based arrangements. These fee-based arrangements can sometimes be negotiated between client and adviser and are paid directly to an adviser when funds are purchased or sold. An adviser could also have a fee based on a percentage of a client’s overall account value. Under a fee-based system there are typically no trailing commissions and the overall management fees are lower than retail series funds.