Introduction
When it comes to investing, many individuals seek the expertise of financial professionals to manage their portfolios. Active management, as opposed to passive management, involves a portfolio manager making investment decisions on behalf of their clients with the goal of outperforming a specific benchmark or market index. While active management can potentially lead to higher returns, it's essential to understand the fees associated with this approach.
Active management fees are the costs investors pay for the expertise and services provided by portfolio managers. These fees can vary depending on factors such as the manager's experience, the size of the portfolio, and the complexity of the investment strategy. Understanding the different types of active management fees and their potential impact on investment returns is crucial for making informed investment decisions.
