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Fulcrum Fee

Categories: Regulations, Investing

A fulcrum fee is an additional fee that's added when an adviser does well and gets a better-than-expected return. On the other side of the coin, the fulcrum fee reduces the fee the adviser would get if the adviser ends up losing a client money.

It's basically a performance-based fee for advisers that acts as a financial stick and carrot.

Find other enlightening terms in Shmoop Finance Genius Bar(f)