Editing Mutual fund (section)

===Management fee===
{{Main|Management fee}}
The management fee is paid by the fund to the management company or sponsor that organizes the fund, provides the portfolio management or investment advisory services, and normally lends its brand name to the fund. The fund manager may also provide other administrative services. The management fee often has breakpoints, which means that it declines in percentage as the invested amount (in either the specific fund or in the fund family as a whole) increases. The fund's board reviews the management fee annually. Fund shareholders must vote on any proposed increase, but the fund manager or sponsor can agree to waive some or all of the management fees in order to lower the fund's expense ratio.

Index funds generally charge a lower management fee than actively-managed funds.