Bogleheads:Sandbox

Management fees work the same for both bond and equity funds. At the end of each day a Fund’s management fee is calculated with the following equation:

$$\frac{(\text{Net Asset Value} * \text{Management Fee Rate})}{365} = \text{management fee for the day}$$

The result of this equation is then booked as a fund expense and a payable each day. The management fee payable is generally paid either monthly or quarterly.