Fee-Based Investment

Fee-Based Investment

A fund or portfolio where the money manager is paid a percentage of the fund or portfolio's market value rather than commissions based on the number of transactions conducted. Fee-based investment is thought to better align the incentives of investors and money managers; specifically, money managers have a reason to provide increased value for the investment. Fee-based investment also reduces the temptation to overtrade simply to extract higher commissions.
References in periodicals archive ?
Advocating a diversified, conservative, long-term approach that minimizes the use of mutual funds, the company relies on private money managers to help CPAs create asset allocation and fee-based investment plans for clients.
Fee-based investments are made in institutional asset class funds in a selection of asset classes.
ASA (800-556-9151) is wholesaling the fee-based investment program through affiliate brokers and financial planners.
org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services.
org/), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Schwab Institutional division.
To accept commissions on the sale of investments you must be licensed with the National Association of Securities Dealers; to operate as a fee-based investment adviser you must be registered with the Securities and Exchange Commission.
Also driving the licensing trend is the shift towards fee-based investment advisory work and away from commission or transaction-based compensation.
org/), offers a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Schwab Institutional division.