Fees charged to obtain, use, manage, or trade financial products and services.
Investment fees may be charged at various stages of financial services and by various entities managing the investment, such as broker fees, trading fees, expense ratios, hedge fund fees, and submanager fees. Fees may also be charged based on the performance of the underlying investment, the cost of obtaining or managing it, and/or to compensate the investment manager or firm.
Generally speaking, the more esoteric or complex an investment is, the higher the fees. Fees are important determinants of investment performance due to their impact on total returns.
Investor.gov. “Understanding Fees.” Accessed September 30, 2024. www.investor.gov/introduction-investing/getting-started/understanding-fees