A fee that an investment advisory firm charges for making investment decisions on behalf of a client.
A management fee is the percentage of your account value that an investment company or manager charges to handle your account
This fee usually consists of a fixed monthly, quarterly, or annual amount plus a percentage of the revenue or income generated by the managed enterprise.
Fee structures are usually based on a percentage of assets under management (AUM); they tend to range from 0.10% to more than 2% of AUM.
An aggressive stock fund that turns over its portfolio several times a year in search of profit opportunities costs much more to manage than a more passively managed fund, such as an index fund that more or less sits on a basket of stocks without much trading.
Management fees can cover a variety of expenses, including Portfolio management