Costs & Fees
Custody Fee
Definition
What is Custody Fee?
A fee charged for safekeeping and administering investmentAn asset or commitment of money made with the expectation of future income, growth, or both. assets.
Example in practice
How This Looks in Practice
The custodianA licensed institution that safeguards a fund's cash and securities separately from the manager's own assets. charges 0.15% of assets yearly.
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Related Terms
Costs & Fees
Management Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.
Costs & FeesExpense Ratio
A fund's annual operating expenses expressed as a percentage of its average net assets.
Costs & FeesEntry Load
A charge deducted when an investor subscribes to a fund.
Plans & OptionsAccumulation Option
A fund option that retains or reinvests income so it contributes to unit-value growth.