Management Fee

A management fee is a charge paid to a company or individual for overseeing and managing investments or services, such as mutual funds or real estate. This fee is typically calculated as a percentage of the total assets under management and is used to cover operational costs, research, and professional expertise. Investors pay this fee to compensate fund managers or management firms for their work in maximizing returns and making investment decisions. Understanding these fees is crucial for evaluating the overall cost of investment and potential returns.