As a money management fee, how much do mutual funds usually charge their customers?
A) between 0.5 and 3.0 percent of assets each year
B) between 1.5 and 3.0 percent of assets each year
C) nothing, because they receive commissions from the firms whose stock they buy
D) a flat fee of about $50

Question

Quizplus · Accepted Answer

Mutual funds usually charge their customers a money management fee between 0.5 and 3.0 percent of assets each year. This fee is commonly known as an expense ratio and covers the fund's operating expenses, such as management fees, administrative fees, and other costs. The specific fee charged can vary depending on the fund and the investment objective.

As a Money Management Fee, How Much Do Mutual Funds