Management fee

Management fee

An investment advisory fee charged by the financial adviser to a fund typically on the basis of the fund's average assets, but sometimes determined on a sliding scale that declines as the dollar amount of the fund increases.

---

management fee

The money paid to the managers of an investment company. The fee is generally based on a percentage of the net asset value of the fund, with the percentage becoming smaller as the fund's assets grow larger. Fees vary considerably among firms but average about one half of 1% of assets. A fund's management fee must be listed in its prospectus and can be found in a number of publications. Also called advisory fee.

---

Management fee. A management fee is the percentage of your account value that an investment company or manager charges to handle your account.

Fees for passively managed index funds typically cost less than the fees for actively managed funds, though fees differ significantly from one fund company to another.