Management Fee

A charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise. It can also include other items such as investor relations expenses and the administration costs of the fund.

Investopedia Says:
The management fee is the cost of having your assets professionally managed. The fee pays other people to select which securities your money (along with that of the other investors in the fund) is invested into, to do all the paperwork needed and to provide information about the fund's holdings and performance.

Management fee structures vary from fund to fund, but they are typically based on a percentage of assets under management. For example, a mutual fund's management fee could be stated as 0.5% of assets under management.

Related Links:
Learn about the basics - and the pitfalls - of investing in mutual funds. Mutual Fund Basics Tutorial
The way a professional is compensated can affect quality of service. Learn more here. Paying Your Investment Advisor - Fees Or Commissions?

Charge against investor assets for managing the portfolio of an open- or closed-end Mutual Fund as well as for such services as shareholder relations or administration. The fee, as disclosed in the Prospectus is a fixed percentage of the fund's net asset value, typically between 0.5% and 2% per year. The fee also applies to a Managed Account. The management fee is deducted automatically from a shareholder's assets once a year. See also Mutual Fund Share Classes.

The cost of professional Property Management. The fee is typically set at a fixed percentage of total rental income generated by the property managed.
Example: Acme Managment Company is employed by several property owners to oversee and collect rent for their properties. Acme's standard management fee is 5% of gross rental income.