Fund fee terms

1. Expense Ratio: This is the annual fee charged by a mutual fund or exchange-traded fund (ETF) to cover the fund's operating expenses. It is expressed as a percentage of the fund's average net assets. 2. Management Fee: This is the fee paid to the investment manager for managing the fund's portfolio. It is usually expressed as a percentage of the fund's assets under management. 3. Sales Load: This is a fee charged by some mutual funds when investors buy or sell shares. It can be front-end (charged at the time of purchase) or back-end (charged at the time of redemption). 4. Redemption Fee: Some mutual funds charge a fee when investors sell their shares within a certain period of time after purchase. This fee is designed to discourage short-term trading. 5. 12b-1 Fee: This is an annual fee charged by some mutual funds to cover marketing and distribution expenses. It is named after the section of the Investment Company Act of 1940 that allows for such fees. 6. Performance Fee: Some hedge funds and alternative investment funds charge a performance fee, which is a percentage of the fund's profits. This fee is designed to align the interests of the fund manager with those of the investors. 7. Advisory Fee: This is the fee paid to the investment advisor for providing investment advice and management services. It is often based on a percentage of assets under management. 8. Custodian Fee: This is the fee charged by the custodian bank for holding and safeguarding the fund's assets. It is typically based on the value of the assets held. 9. Account Maintenance Fee: Some financial institutions charge a fee for maintaining investment accounts. This fee may be charged annually or on a monthly basis. 10. Inactivity Fee: Some brokers and financial institutions charge a fee if there is no trading activity in the account for a certain period of time. This fee is designed to encourage active trading.