An annual fee charged by some mutual funds to cover promotion and selling expenses is called the 12b - 1 fee. The 12b-1 fee is considered an operational expense and is thus included in the expense ratio of a fund. It is typically between 0.25% and 0.75% (the maximum permitted) of a fund's net assets and must be reported in the prospectus.
Mutual funds are much more popular these days, making the annual fee's initial rationale much less important. With billions of dollars under management, it's difficult to see why investors should be charged to market the fund to other potential investors.
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