Thursday, December 23, 2010

Fund Fees

Fund Fees are any fees charged to an investor that invests in a fund. The types of fees and quantum of fees varies by fund provider and distribution channel. Examples of fees are: Management Fee - an annual asset based percentage fee for investment management e.g. 0.50%, Administration Fee - an annual asset based or fixed fee for administration of accounts, reporting etc, Sales Fee - a fee charged upon initial investment in the fund, usually charged to pay for sales e.g. adviser/broker commissions, Exit Fee - a fee charged for exiting the fund. There are also indirect and sometimes hidden fees or expenses that are charged directly to the fund such as certain operating expenses, custodian and trustee expenses, etc. It is important to be aware of the type of fees being charged by a fund provider as fees decrease returns, which can have a meaningful impact over the long term.

Synonyms: Fees, Fund Expenses, Load, Administration fee, Management fee, Performance fee, Exit fee, Total expense ratio, Management expense ratio, Fund charges

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