Management Fee

January 20, 2014  |     |     |   0 Comment

In investing, a management fee is the fee paid to an investment manager for the time and expertise he offers in managing investments.

The fee structure depends on the type of investment fund and the level of expertise provided. A hedge fund whose investments are actively managed would usually charge higher fees than a mutual fund that is more passively managed.

Generally, fees are charged as a percentage of total assets under management. These fees can range between 0.5% to 2% or higher.  Some managers also charge a percentage of profits generated by the manager’s investment decisions. This is referred to as a performance fee.

Author: 

Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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