To work out the Investor's profit, you would need to calculate the Profit made by the Money Manager multiplied by the Investor's ratio, and lastly deducting the Management Fee.
Jadon (Investor) funds $20,000 in a Fund. The total money invested in the fund is $200,000. As for the Fee, the Money Manager sets a Fee of 5%. Let's say the Money Manager makes a profit of $10,000 so now the Total Equity of the Fund is $210,000.
Equation: Profit ($10,000) * 10% (The Investor's percentage of the fund) - $500 (Money Manager's Fee).
Need assistance? We are available 24/7.
You can contact us via live chat or send an email to email@example.com and we can assist you further.