Fees are rewards, that Fund Manager gets for managing the fund. There are three different types of fees that can be applied:
Entrance fee - a fee that is taken instantly in a moment when the user deposits funds due to unique access of the fund manager to network and/or deal flow, which is typically taken when an investor can not participate in the proposed deal without the fund manager.
Fund management fee - a fee that taken to cover expenses to manage the fund and typically covers such costs as analyst's salaries, office rent, travel expenses, and so on.
Performance fee - a fee which is taken from profit, generated by the fund manager. This fee is only applied when the fund manager generates profit for investors, so we strongly recommend investors give preference to the funds, which are taken only Performance fee to avoid Principal and Agent conflict of interest.
You can find a comparison and description of fees below:
Fees comparison table
Fees can be applied separately or together depending on the fund's activity and type.