Name: Fees decoded – 2-20 model simplified with pizza slice analogy | aif | investment Fund
Uploaded: 2025-10-09 07:05:15.694723+00:00
Duration: 1 min 30 s

aif | investment Fund | investmentmanagement | indianfinance | feemodel    Ever noticed how the guy who paid for pizza always grabs the biggest slice? 🤣 Welcome to the infamous 2-20 fee model in Alternative Investment Funds (AIFs)! Imagine pooling money with friends to order a pizza 🍕 — just like investors pooling capital in an AIF.  How the 2-20 Model Works  The '2': Management Fee → 2% of total assets (like mandatory pizza delivery charge 💸).  The '20': Performance Fee → 20% of profits above hurdle rate (the extra-cheesy bonus slice 🍕).  Aligned Interests: Manager earns big only if he delivers big returns.  Why It Seems Fair  Performance Incentive: Bigger pizza (returns) → bigger manager slice.  Skin in the Game: Interests aligned with investors 👥.  Growth Motivation: Manager wants bigger, tastier pizza for everyone! 😋  #aif #alternativeinvestmentfunds #feemodel #2-20fee #investmentmanagement #performancefee #alignmentofinterests #privateequity #hedgefunds #investments #financialplanning #moneymanagement #indianfinance