Management and transaction fees for actively managed funds
What are the fees for participants who purchase units of actively managed funds?
In accordance with the practice at discount brokers distributing Series D and Series F funds, participants in Bourstad simulations acquire and retrocede investment fund units without having to pay brokerage fees.
The management of Series D and Series F funds entails various types of fees for portfolio management and marketing. The Fund Manager continually collects from the funds the amounts required for these disbursements, which in turn reduces the return of the investor.
For Series D and F, these typically range from 1% to 1.5% per year. Fund managers regularly publish on their website the management expense ratio applicable to each fund they offer. This type of information can also be found on specialized sites such as Morningstar.