Why are actively managed funds paid via fees, and not based on performance?
If someone (or some company) is claiming to be better than me at using my money to make money, surely they'd agree to put skin in the game, and only profit when I do?
If they don't feel confident enough about their choices making money (and hence, ensuring they get compensated), why should I?
edit: I was referring to the types of funds typical retail investors are in, not hedge funds.
If someone (or some company) is claiming to be better than me at using my money to make money, surely they'd agree to put skin in the game, and only profit when I do?
If they don't feel confident enough about their choices making money (and hence, ensuring they get compensated), why should I?
edit: I was referring to the types of funds typical retail investors are in, not hedge funds.