What is annual management charge for mother fund?
Some funds are a feeder fund structure and so, they are funds that buy into a mother fund that is based overseas. These mother funds have their own layer of fees, including management fees. However, most fund houses have various arrangements that cap the fees at the mother fund level (or rebate them to the feeder fund), so that you don’t overpay for the feeder fund structure. As the annual management charge is part of the annual expense ratio, you do not need to fork out extra for this charge as it will be deducted from the daily NAV price.
