Management Fee
A management fee is recurring compensation for investment management, calculated from a specified asset or capital base under a fund or advisory agreement.
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 is recurring compensation for investment management, calculated from a specified asset or capital base under a fund or advisory agreement.
Two and twenty is shorthand for a 2% management fee and 20% performance compensation, with actual cost determined by the fee bases and fund terms.