Fee-Based Investment(redirected from Fee Based Investments)
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved