Management Fee
A management fee compensates an investment manager for managing a fund, portfolio, account, or advisory mandate.
Management fee and two-and-twenty terms used in mutual fund and alternative fund fee analysis.
Management and Performance Fees terms explain the explicit and embedded costs investors may pay through fund expense ratios, management fees, sales loads, redemption fees, and share classes.
Use this branch when costs or share-class design can change net return, distribution economics, adviser compensation, or the suitability of a fund wrapper.
| Term | Use it for |
|---|---|
| Management Fee | A fund cost, compensation, share-class, or distribution term that affects investor net return. |
| Two and Twenty | A fund cost, compensation, share-class, or distribution term that affects investor net return. |
Check the prospectus or offering document, expense ratio, fee waiver, sales charge, redemption fee, 12b-1 or distribution fee, adviser compensation, and share-class eligibility.
This page is educational and does not recommend a specific fund, security, tax treatment, or account choice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
A management fee compensates an investment manager for managing a fund, portfolio, account, or advisory mandate.
Two and twenty is a hedge fund fee model with a 2% management fee and 20% performance allocation or incentive fee.