2 and 20

Hindi: टू एण्ड ट्वेन्टी

Nepali: टू एण्ड ट्वेन्टी

It is a fee arrangement that is standard in the hedge fund industry.

It is also common in venture capital and private equity.

Typically, Hedge fund management companies charge clients both a management and a performance fee.

2 refer 2% of assets under management (AUM); It refers to the annual management fee charged by the hedge fund for managing assets.

20 refer 20% of the standard performance or incentive fee of the profits made by the fund above a certain predefined benchmark.