Management Fee

This is a fee that the fund pays to its investment advisor for dealing with the portfolio. It is typically 0.5%-1% of the fund's total assets yearly and is remembered for the overall expense ratio.

Features

• Fee structures are normally founded on a percentage of assets under management (AUM); they will generally go from 0.10% to over 2% of AUM.
• Management fees are the cost of having an investment fund expertly managed by an investment manager.
• The management fees cover the cost of paying the managers as well as the costs of investor relations and any administrative costs.