Performance Fee

Performance Fee The performance fee is an amount of money that is given to a investment manager as a reward for good making the investor money. This fee is usually a certain percentage of the return that the investor has received from the fund or investment and can be very lucrative for the manager when a great deal of money has been made. Generally, this is meant to give managers the motivation to help an investor's portfolio grow, as this is the only way that investors will see consistent results in the market and a good manager knows how to accomplish this on a consistent basis.

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