Mutual funds charge an investment management fee. Certain mutual funds also charge short-term trading fees if shares of the fund are held for less than a stated number of days.
Variable annuities charge investment management fees and may charge short-term trading fees for certain underlying fund options. In addition, an annual mortality and risk expense fee (M&E fee) may be charged.
Because fixed annuities provide a guaranteed rate of return, that guarantee already takes into account any expenses the insurance company may incur in managing the investment. Some fixed annuity contracts may have withdrawal restrictions that may impact the timing of your withdrawal of assets from fixed accounts.