What Does an Investment Adviser Charge for Services?

Answer:
An investment adviser's fee is

also known as an asset management fee. The amount that an adviser charges is based on the size of your account. Usually, larger accounts will pay fewer fees than smaller accounts. Asset management fees can vary and can be as high as 3% at some firms.

In addition to an adviser's fee, you’ll also incur costs of fixed and variable expenses. Fixed expenses are included in the Annual Expense Ratio. This expense ratio pays for such items as recurring operational costs, as well as the manager’s salary. Of course, you won’t find this expense listed on your monthly statement. Broker commissions and trading expenses are the biggest variable costs to the investor.

So, when you’re interviewing potential investment advisers, make sure to ask what your total cost will be – not just the cost of the adviser's commission.