Management fee

Management fee,

Definition of Management fee:

  1. Remuneration paid to a management company which manages mutual funds, unit trusts, hotels, resorts, and offshore companies on behalf of investors/owners. This fee usually consists of a fixed monthly, quarterly, or annual amount plus a percentage of the revenue or income generated by the managed enterprise.

  2. A fee paid to a person or company for managing a business, property, sum of money, etc. on anothers behalf.

  3. A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting stocks and managing the portfolio. It can also include other items such as investor relations (IR) expenses and the administration costs of the fund.

  4. The management fee is the cost of having your assets professionally managed. The fee compensates professional money managers to select securities for a fund’s portfolio and manage it based on the fund’s investment objective. Management fee structures vary from fund to fund, but they are typically based on a percentage of assets under management (AUM). For example, a mutual fund's management fee could be stated as 0.5% of assets under management.

How to use Management fee in a sentence?

  1. The management fees cover not only the cost of paying the managers but also the costs of investor relations and any administrative costs.
  2. Fee structures are usually based on a percentage of assets under management (AUM); they tend to range from 0.10% to more than 2% of AUM.
  3. Management fees are the cost of having an investment fund professionally managed by an investment manager. .

Meaning of Management fee & Management fee Definition