What is an interest carried?
Interest is the type of compensation or money paid to private capital or hedge funds. It is separate and different from the standard fee for management of the fund manager. It is basically a form of compensation based on the profit based on investment and is designed to create a legitimate interest in the fund manager in terms of the fund that works well.
The Hedge Fund or Private Capital Manager collects money from a group of investors and then invests the unit's aggregate. In many ways, it is similar to the mutual fund, in which many people will join their money and that more money is invested in many shares, allowing the investor to diversify their risk and gain the benefits of extensive investment, even if it has a small amount of money. However, the Hedge Fund or the Private Capital Fund is generally more restrictive than the mutual fund, with regard to who it can invest. Securing funds are usually available in the Investment Banking House known as "boutique" f fIrma, which provides rich clients, and a large initial buy-ins may be required to invest in a hedge fund.
As soon as a private capital or hedge fund manager gathered money from investors, then invested it in shares, bonds or other investments in connection with the objective of the fund and its investors. The general goal is to provide a good return on investment for those who put their money, but some funds invest more in growth shares or developing markets or approach the investment process differently. However, the hedge fund manager is interested in assistance in ensuring the growth of the fund and ensuring that he invests as carefully as possible.
Interesting is designed to provide Hedge fund administrators further motivation to actually invest. While the Hedge Fund administrator may receive a payment simply for fulfilling their duties in the administration of the Anákup Fund of Shares,Often most of its compensation comes from the transferred interest payment. Interest is the percentage of profits or profits of the fund it maintains. This percentage can be up to 20 or 25 percent.
Because the more the fund does, the more he earns, the goals of the hedge fund manager are perfectly in line with his investors. When the fund rises, directly profits or benefits. The payout of the transmitted interest may be potentially in millions of dollars depending on the size of the fund and growth, providing a large amount of motivation to invest.