Typically, the largest money market mutual fund expense is the management fee charged by the fund’s advisor, which is usually also the sponsor of the fund.  This fee compensates the fund’s advisor for administering the fund and managing its portfolio.

Money market fund management fees are fees used to compensate the portfolio management team.  Mutual fund management fees are paid out of fund assets to the fund’s investment adviser for managing the fund’s investment portfolio, and administrative fees payable to the investment adviser that are not included in the category of other expenses.

The management fee for the fund is usually synonymous with the contractual investment advisory fee charged for the management of a fund’s investments.  However, as many fund companies include administrative fees in the advisory fee component, when attempting to compare the total management expenses of different funds, it is helpful to define management fee as equal to the contractual advisory fee plus the contractual administrator fee.

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