Management fees refer to the charges or payments made by investors to fund managers for their services in managing and overseeing their assets. These fees are typically calculated as a percentage of the total assets under management, with higher levels of asset management often resulting in higher fees. Management fees can also be charged on an hourly basis or as a fixed fee, depending on the agreement between the fund manager and investor. The purpose of these fees is to compensate the fund manager for their time, expertise, and efforts in managing the assets and achieving returns for the investors.