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Simple English definitions for legal terms
management fee
Read a random definition: prorogation
A quick definition of management fee:
Management fee: A management fee is a charge that is paid to a person or company for managing something, such as an investment portfolio or a property. It is a fee for the services provided by the manager.
A more thorough explanation:
A management fee is a fee charged by a company or individual for managing an investment portfolio or providing a service. It is a fee paid to the manager for their expertise and time spent managing the investment.
For example, a mutual fund may charge a management fee of 1% of the total assets under management. If the fund has $1 million in assets, the management fee would be $10,000 per year.
Another example is a property management company that charges a management fee for managing rental properties. The fee may be a percentage of the monthly rent or a flat fee per property.
These examples illustrate how a management fee is a fee charged for managing an investment or providing a service. The fee compensates the manager for their time and expertise in managing the investment or property.