Business and Personal Finance Dictionary

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• MANAGEMENT FEE
  
  A management fee is the percentage of your account value an investment company or manager charges to handle the investments you make. For example, if you invest in four different mutual funds offered through your 401(k), you'll pay a management fee to the company that sponsors the funds. Each individual fund sets its own fee, reflecting the level of management that's required though in the US the total expense can't be more than 8.5%. Generally, index funds cost the least and international equity funds cost the most, though fees differ significantly from one fund company to another.
  
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