Management Fee
A management fee is an annual charge levied by an investment fund to compensate the fund manager or asset management company (AMC) for their investment management services. It's expressed as a percentage of the fund's average assets under management (AUM). Management fees cover the costs associated with researching investments, making portfolio decisions, and the overall administration of the fund. Investors should consider a fund's management fees when evaluating its overall cost and potential impact on returns.
