Management fees

Management fees are the costs you pay out of your pocket in exchange for having your investments managed by a professional fund manager. Suppose you invest your funds with a particular mutual fund house or a specific fund manager. In that case, they usually charge you a percentage of your assets invested with them as management fees.

For example, if you invest $100,000 with a fund with a management fee of 1%, you have to pay $1000 yearly as fees to the fund. This increases or decreases based on how the fund performs annually.