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Why do mutual funds charge a management fee on the total amount instead of on the growth?


Why do mutual funds charge a management fee on the total amount instead of on the growth?

That way they can profit even if you lose money.

Some funds will charge less if they lose money.

because they can.

Generally mutual funds, as opposed to hedge funds, cannot charge a management fee based on performance.

A subadviser can, but that does not trickle down to the investor.

Mutual fund management fees are a percentage of total assets under management.

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