The fund management fee is the management remuneration paid to the fund manager, and its amount is generally extracted from the fund assets according to a certain proportion of the net asset value of the fund. Fund manager is the manager and user of fund assets, which plays a decisive role in maintaining and increasing the value of fund assets. Therefore, the proportion of fund management fees charged is higher than other expenses. Fund management fee is the main source of income for fund managers, and fund managers' fees cannot be spread into funds or fund companies, nor can they be charged to investors. Outside _, the fund management fee is usually calculated on a daily basis, and it is paid regularly according to a certain proportion (annual rate) of the fund's net asset value on each valuation date.
The management fee is related to the fund size, generally speaking. The larger the fund scale, the lower the fund management fee rate. But at the same time, the fund management fee rate is also related to the fund category and different countries or regions. Generally speaking, the higher the fund risk, the higher the fund management fee rate, among which the fund with the highest rate is the securities derivative fund, such as the annual rate of the warrant fund is 1.5% ~ 2.5%. The lowest is the money market fund with an annualized rate of only 0.5% ~ 1%. The annual management fees of other funds announced by the Hong Kong Fund Association are: 0.5% ~ 15% for bond funds and 0/%~ 2% for equity funds. In developed countries and regions such as the United States, the annual management fee of the fund is usually around 1%. However, in some developing countries or regions, the proportion is higher. For example, the annual fund management fee rate in Taiwan Province Province is generally 1.5%, and the annual fund management fee rate in some developing countries even exceeds 3%. My current annual fund management fee is 2.5%.
In order to encourage fund management companies to use fund assets more effectively, some funds also stipulate that performance rewards can be paid to fund managers. Fund performance compensation is usually based on the growth of managed fund assets. As for the number of withdrawals, Hong Kong stipulates that withdrawals can be made at most once a year.