Series 7: 7.1.2 Types Of DPPs

7.1.2  Types of DPPs

DPPs are set up primarily to fund high-risk and capital-heavy businesses such as real estate, oil and natural gas, and equipment leasing. However, this is not always the case, and DPPs can range in their level of risk. High-risk DPPs rarely make money in the beginning but may have a high payout later. Low-risk DPPs may pay income now but don’t have much potential for higher returns in the future.