Management Fees: Understanding Charges for CFA® Level 1 Exam Preparation

Management Fees Charged for CFA® Level 1: Explained

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Question

Management fees are charged -

Answers

A. only by low-load and 12b-1 plan open-end investment companies.

B. only be load open-end investment companies.

C. by all investment companies.

D. only by no-load open-end investment companies.

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Explanations

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A. B. C. D.

All investment companies charge annual management fees to compensate the managers of the fund. These fees are typically 0.25 to 1 percent of average net assets of the fund and tend to decline with the size of the fund.

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