Management charges - Charges made by the managers of, for example, a mutual fund or unit trust which cover investment management and administration costs. Charges usually take the form of a percentage fee based on the value of the fund. The charges for unit trusts tend to be higher than for investment trusts (typically 1.5% as against under 1%). Tracker funds, which are passively managed to follow an index, are much cheaper to run, and the costs passed on to investors are correspondingly lower. Exchange-traded funds, a new type of collective fund imported from the USA, also have lower charges than conventional unit trusts.
Management charges : charges made by the managers of, for example, a mutual fund or unit trust which cover investment management and administration costs. charges usually take the form of a percentage fee based on the value of the fund. the charges for unit trusts tend to be higher than for investment trusts (typically 1.5% as against under 1%). tracker funds, which are passively managed to follow an index, are much cheaper to run, and the costs passed on to investors are correspondingly lower. exchange-traded funds, a new type of collective fund imported from the usa, also have lower charges than conventional unit trusts.
Management charges