Management Fee

Dictionary Says

Definition of 'Management Fee'

A charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise. It can also include other items such as investor relations expenses and the administration costs of the fund.
Investopedia Says

Investopedia explains 'Management Fee'

The management fee is the cost of having your assets professionally managed. The fee pays other people to select which securities your money (along with that of the other investors in the fund) is invested into, to do all the paperwork needed and to provide information about the fund's holdings and performance.

Management fee structures vary from fund to fund, but they are typically based on a percentage of assets under management. For example, a mutual fund's management fee could be stated as 0.5% of assets under management.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. 12B-1 Fee

    An annual ...
  2. Expense Ratio

    A measure of ...
  3. Fund Manager

    The person(s) ...
  4. Mutual Fund

    An investment ...
  5. Layered Fees

    Two sets of ...
  6. Hedge Fund

    An aggressively ...
  7. Advisor Fee

    The fee that is ...
  8. Fee Structure

    A chart or list ...
  9. Performance Fee

    A payment made ...
  10. Fiduciary Risk

    A type of risk ...

Articles Of Interest

  1. Mutual Fund Fees

    An article by the Securities and Exchange Commission on fees and loads involved with mutual funds.
  2. Mutual Fund Basics Tutorial

    Learn about the basics - and the pitfalls - of investing in mutual funds.
  3. Paying Your Investment Advisor - Fees Or Commissions?

    The way a professional is compensated can affect quality of service. Learn more here.
  4. Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.
  5. 12b-1: Understanding Mutual Fund Fees

    Many mutual funds charge investors a 12b-1 fee to pay for marketing and promotion expenses.
  6. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  7. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  8. The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  9. Tips For CFPs Looking To Building A Portfolio For Clients

    Here is some useful advice for CFPs when it comes to building portfolios for clients.
  10. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center