Bobbing's law

Bobbing's Law states that investment management fees tend to be proportional to the amount of assets under management. In simpler terms, the more money a client invests, the higher the management fees are likely to be, often calculated as a percentage of the total assets. This creates a direct relationship between the size of the investment and the cost of managing it, meaning larger portfolios generally incur higher total fees, though often at a lower percentage rate. This principle helps investors understand how fees scale with their investments, influencing decisions on asset size and management options.