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.

Factors affecting fund management fees

Generally speaking, the management fee is related to the fund size. 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.

Development of fund management fee

China's initial annual fund management fee was 2.5%. With the intensification of market competition, at present, most domestic funds accrue fund management fees according to the ratio of 1.5%. The management fees of bond funds are generally lower than 1%, and the management fees of monetary funds are 0.33%.

Relevant provisions on fund management fees

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. However, the fund manager's fees cannot be spread into funds or fund companies, nor can they be charged to investors.