custodial fee

fee that a broker of financial institution charges its client for safekeeping their assets or securities.

The amount charged by the Custodian for the custody of the asset in the investment fund. It is one of the basic commissions of an investment fund (along with the management fee).

It is unavoidable, all investment funds have one. It is also known as custody fee. It is calculated based on the fund´s assets or the nominal value of the securities in its portfolio. They are charged daily to the fund and are included in the value of their investment.

Therefore, the investor should not pay any extra charge for these items. The legal limit in terms of depository or custodial commission that managers cannot surpass is 0.2% of the fund´s assets, however, this can vary depending on the type of fund.