Divestopedia explains Management Fee
Asset managers incur expenses in providing advice to investors regarding prospects versus risk involved with different investment schemes and asset purchases. They also conduct research in order to be able to predict the prospects of different sectors of the economy in various time frames. Some fund managers waive the fee in the eventuality of the fund not generating minimum return.
Typical annual figures for management fees are 0.75% to 0.5% of the net asset value of the unit, in the case of mutual funds. A management fee is also applicable for operating and managing resorts, hotel chains, offshore trusts and commercial establishments. The term fee, in these cases, refers to a periodic payment as percentage of revenue or profit