Mutual Funds Management Fees

Mutual funds, like other funds, are administered by a manager.  A manager eases many difficulties for the fund’s investors, but this comes at a price.  Managers typically charge between 0.5% and 1% of the mutual fund’s assets; this is known as the management fee.   This is a substantial fee, considering the immense wealth invested in most mutual funds.  Although this expense cuts a big chunk from the mutual fund, it pales in comparison to what many hedge fund managers charge.