Layered Fees

Written By
Paul Tracy
Updated June 23, 2021

What are Layered Fees?

Layered fees are management fees, typically in investment products, that investors pay to financial managers for the same group of assets.

How Do Layered Fees Work?

Many mutual funds, annuities and investment advisors charge layered fees. Let's say John Doe is a financial advisor, and his standard fees include the cost of trading domestic stocks. However, Jane Smith wants John to make various trades of Japanese stocks in her portfolio. John has a layered fee structure, so he charges Jane extra for these transactions.

Why Do Layered Fees Matter?

Layered fees are often duplicative, but the prospectuses for these investments and client agreements (when an advisor is involved) must disclose them to investors.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Layered Fees.
Be the first to ask a question

If you have a question about Layered Fees, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Layered Fees, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Layered Fees

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms