Management Fees of Mutual Funds

Management fees cover the fund company’s management expenses — the work of lawyers and accountants, the cost of maintaining books and records, money spent complying with government regulations and disclosure rules, research expenses, and the salary of the fund manager, among other costs. The amount varies from fund to fund and from one type of fund to another.
Management fees are usually lower on money market mutual funds and other bond funds and higher on most types of equity funds because of the greater complexity of the investment decisions.
Management fees are usually the single largest portion of a fund’s annual expenses, averaging between 0.5% and 1.0% of the fund’s assets.