Re: Starting a mutual fund
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Any monkey with some darts and a dart board can run a mutual fund. The performance tables for funds are the proof of this.
The difficult part for the monkey is attracting the cash. This is especially difficult because very few monkeys have any sort of track record or credibility when it comes to managing money.
So:
1 - How are you going to attract the investment?
2 - How are you going to turn a profit with 0.5% fees? This equates to $5000 in fees per $1000000 invested. If it's a managed portfilio you have significantly more time, regulatory, and financial costs to bear. You need a lot of money to manage to make it worthwhile.
questions #3 to #100 will follow once 1 & 2 have been addressed.
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1. I plan to publish my track record, and am confident that over time, my results will speak for themselves and will attract investors.
2. That is a very good quesion. I am still learning how fees and everything work. As I don't plan to have anyone on the payroll besides myself (and the occasional accountant/lawyer that is hired on a limited as-needed basis), I hope to keep fees to an absolute minimum. I am not yet sure how realistic this is but hope to find out. However, I do not expect or want to get even a fraction of what some of the funds charge today (as I think many of the fees are outrageous).
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