Think some pay themselves a performance fee if certain targets are met (for example, 15% if over 10%). This on top of flat fee.
Think some pay themselves a performance fee if certain targets are met (for example, 15% if over 10%). This on top of flat fee.
Never found one that worked on a percentage of gains, which is telling. There tends to be a flat fee (1% is typical) which is payable even if they lose you money - which they frequently do.
Hedge funds and private equity funds tend to have this “performance” element. Generally speaking if the fund is “active” ie trying to beat the benchmark index instead of just tracking it the fees tend to be much higher. Personal opinion i would never instead in actively managed funds.
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