Fee-Based Investment

(redirected from Fee-Based Investments)

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 ?
Fee-based investments are made in institutional asset class funds in a selection of asset classes.
a broker-dealer, CPAs can become registered representatives; Terra Insurance Services allows affiliates to sell insurance products; and Terra Financial Planning Group is a registered investment adviser that enables CPAs to become investment adviser representatives, working on fee-based investments.
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.