Costs & Fees
Management Fee
Definition
What is Management Fee?
The recurring fee paid from fund assets to the fund managerThe licensed firm responsible for investment decisions and day-to-day management of a fund. for managing the portfolioThe complete collection of investments owned by an investor or managed under one mandate..
Example in practice
How This Looks in Practice
A 1.5% annual management fee on average assets of $1 billion equals roughly $15 million before timing adjustments.
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Related Terms
Costs & Fees
Expense 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.
Costs & FeesExit Load
A charge applied when fund units are redeemed, often within a specified holding period.
Plans & OptionsAccumulation Option
A fund option that retains or reinvests income so it contributes to unit-value growth.