InvestorWords.com
performance fee
Definition
A type of fee that gives a portion of the returns of a fund or investment to the manager as a reward for positive performance. The fee is generally a percentage of the profits made on the investments. This type of fee is designed to reward managers for increasing the value of a portfolio, since investors will see value only when the portfolio grows.
Recommended Articles from InvestorGuide.com
Related Videos
Featured Advertiser
Get our free Term of the Day newsletter!



