Annual management charge (AMC)
The annual management charge (AMC) is a fee you pay to your fund manager for investing your money on your behalf. The fee is usually a percentage of the value of your investment.
For instance, if your investment is worth £10,000 and the fund manager’s charge is 1% then you will pay £100 a year.
It is common for funds which hold more risky assets, including equities and property, to have a higher AMC than less risky investments such as corporate bonds or gilts, and is what you pay for the fund manager’s expertise.
It is very important that you know the fees that your fund manager charges. The higher the fees the more your investment will have to grow each year to earn a decent return.