There are no consistent analyses where the fund managers take the performance fees in 2-3 years, with most predictability during the bull period.
The stock market prices fluctuate, and a manager will sometimes close a fund that has suffered severe losses. As per a promarket analysis, both managers and investors are more likely to terminate investment activity after losses. Investors are more likely to withdraw their capital, and managers are more likely to liquidate their hedge funds. There are no such fixed rules for the manager to stop managing the money after one year in the loss.
A bullish market trend is represented by rising stock prices of various securities in the market, especially equity instruments. Growth of at least 20 percent or more has to be registered by several stock exchanges regarding trade volume and purchases to be called a bull market.
Bull markets provide a good chance for wealth creation, as per reports. It is ideal for taking advantage of rising prices by buying stocks earlier and selling them at higher rates. According to Angel Broking, losses in a bull run are minor, and the investor has a greater probability of earning returns.
The market cycles are fraught with risks, and it is crucial to use indicators to spot when bull markets are beginning or ending. Making decisions under risk and uncertainty is the essence of equity investing. However, no such reports of the fund manager collecting the performance fee in 2-3 years in the bull market and then stop managing money after suffering a loss are available online.