The amount charged by the management company of an investment fund to conduct the management of capital invested in the fund. It covers the salaries of managers and operating expenses associated with the fund. It is one of the basic commissions and takes on the same function of the custodial fe

It accrues daily and is implicit, meaning, it is already deducted from net asset value to which the investor subscribes or redeems their shares.

It can be set depending on the assets to be managed, the fund´s performance, or even both.

The management fee has a maximum of 2.25% if based on equity and in 18% if it depends on performance exclusively. When set as a variable of both the maximum is set at 1.35% of the first and 9% of the latter. In many cases it is better to apply management fee to performance, which leads one to understand that with an investment fund a profit is practically assured (the manager earns only if I earn). The market considers these commissions to be "good" for customer because they align client/manager interests.

However, the problem that arises is that such commissions can skew results of risk analysis performed by the manager just to increase profitability, leading him to take on more risk involved that what is convenient.