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Investment Fee
Money charged for buying, selling, running, or advising on a financial product.
Example
A fund charges 1% each year. If Eli has $1,000 in it, about $10 is charged that year before later changes in value.
How it fits in
Fees may be recurring percentages, fixed amounts, sales charges, trading costs, or performance charges. A recurring fee removes money that could otherwise remain invested, so its effect can grow over time. Compare total costs for products with similar holdings and goals. A low fee does not make a poor or unsuitable investment safe, and a high fee does not guarantee better performance.
Where this is taught
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.