management fee

1. The money paid to the managers of an investment company. The fee is generally based on a percentage of the net asset value of the fund, with the percentage becoming smaller as the fund's assets grow larger. Fees vary considerably among firms, but average about one-half of 1% of assets. A fund's management fee must be listed in its prospectus and can be found in a number of publications. Also called advisory fee.
2. The fee charged to manage commercial or residential real estate, generally stated as a percentage of rental income.