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The management cost is reduced in comparison to the operation and depreciation expenses. As a result, the general cost of ownership is bigger in comparison to the funds. Consequently, the general price of management is typically lower in comparison to the funds expenses.
For most cases, the brief-phrase management charge is related to an additional proportion of appreciation, often known as the IRR. The IRR is solely the difference between the extensive-term administration cost and the extended-time period lease.
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