Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Performance fees definition

Investment and hedge fund managers will often charge performance fees for generating positive returns on investments. The fee is a percentage of any profits or outperformance generated, typically between 10% and 20%.

Performance fees definition

Investment and hedge fund managers will often charge performance fees for generating positive returns on investments. The fee is a percentage of any profits or outperformance generated, typically between 10% and 20%.

Performance fees are controversial. Supporters argue they act as an incentive for fund managers to seek the best possible returns, while detractors argue they mean managers share in the fund’s profits, but not in any losses, and are incentivised to take on too much risk. There’s a push from UK regulators to make fees more transparent.

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