Starting a mutual fund

[Shoe]

Hi all,

I am looking to start my own mutual fund that others can invest in. I do plan to make some commissions off of this but plan to keep the overall fee ratio minimal and on par with vanguard funds, yet at the same time deliver much better performance. So far, I have only found information on other mutual funds that want me to invest in them. Does anyone have any information here on regulations, etc... on what it will take to start my own mutual fund that others can invest in?

I have some financial advisors that are willing to suggest my fund to their clients if I can get this going. I am more than willing to to help others ride my coattails to riches.

Also, does anyone know the laws/regulations as to posting my current stock holdings on a website? Can I post my current stock holdings plus any buys/sells i make, or are there any special disclaimers i need to make or laws/regulations I need to look out for?

Thanks in advance! [img]/images/graemlins/grin.gif[/img]

Edit: I know I am pushing it asking for this advice here, but just throwing it out there in case anyone knowledgable in the subject lurks here. I am doing research on this in other areas as well, but figured it couldn't hurt to post this here. Mods: If you feel this is out of line for this forum feel free to remove.

[Evan]

Are you kidding?

The same guy who said, "I feel I am the T.J. Cloutier of the stock market. I don't do much math but i have an absolutely great feel as to what companies are going to be successful and which one aren't. I'm also still young so I know what trends are hot and which ones aren't (i.e. I can read through the hype on journalists trying to act cool)," wants to start his own fund?

This is awesome.

[prohornblower]

If by "mutual fund" you mean 95% Nintendo stock, and 5% bonds, COUNT ME IN BABY!!! As long as your expense ratio is under 2.5% I WILL PM YOU MY SSN AND INFORMATION...just handle my money for me please.

Call me when I'm rich.

[Shoe]

[ QUOTE ]
If by "mutual fund" you mean 95% Nintendo stock, and 5% bonds, COUNT ME IN BABY!!! As long as your expense ratio is under 2.5% I WILL PM YOU MY SSN AND INFORMATION...just handle my money for me please.

Call me when I'm rich.

[/ QUOTE ]

The expense ratio will be < .5% (I'm assuming I can keep that low as I will be the only employee besides legal/accounting fees, 1% at the absolute most -- but other funds have so much waste in them I don't see how I couldn't keep the fees low). There will be 0% bonds. NTDOY will make up about 5% of the portfolio (I will not allow any single holding to be more than 5%, or more than a 5% ownership stake in any company -- unless regulations I am not aware of dictate a smaller percentage). For obvious reasons I cannot reveal the rest of my intended holdings until the wheels are further in motion.

[Shoe]

[ QUOTE ]
Are you kidding?

The same guy who said, "I feel I am the T.J. Cloutier of the stock market. I don't do much math but i have an absolutely great feel as to what companies are going to be successful and which one aren't. I'm also still young so I know what trends are hot and which ones aren't (i.e. I can read through the hype on journalists trying to act cool)," wants to start his own fund?

This is awesome.

[/ QUOTE ]

I understand why you, and others, might laugh this off. However, it is not my intent to instantly turn this into some huge fund. My top priority right now is to get a publicly accessible fund available that will have publicly available performance results that are tracked over time. Within a few years, people can judge for themselves if my fund will be worth a portion of their portfolio or not.

[Evan]

[ QUOTE ]
[ QUOTE ]
Are you kidding?

The same guy who said, "I feel I am the T.J. Cloutier of the stock market. I don't do much math but i have an absolutely great feel as to what companies are going to be successful and which one aren't. I'm also still young so I know what trends are hot and which ones aren't (i.e. I can read through the hype on journalists trying to act cool)," wants to start his own fund?

This is awesome.

[/ QUOTE ]

I understand why you, and others, might laugh this off. However, it is not my intent to instantly turn this into some huge fund. My top priority right now is to get a publicly accessible fund available that will have publicly available performance results that are tracked over time. Within a few years, people can judge for themselves if my fund will be worth a portion of their portfolio or not.

[/ QUOTE ]
Do you realize that you voluntarily compared yourself to someone that throws away money on obviously losing wagers and listed your main advantages as having good "feel" and being young?

[Shoe]

[ QUOTE ]
Do you realize that you voluntarily compared yourself to someone that throws away money on obviously losing wagers

[/ QUOTE ]

Please explain this part, i'm not sure what/how you mean by it. Serious post, I am trying to learn here, i by no means consider myself an expert. Just a novice with something to prove, but more than willing to learn along the way.

[Evan]

[ QUOTE ]
[ QUOTE ]
Do you realize that you voluntarily compared yourself to someone that throws away money on obviously losing wagers

[/ QUOTE ]

Please explain this part, i'm not sure what/how you mean by it. Serious post, I am trying to learn here, i by no means consider myself an expert. Just a novice with something to prove, but more than willing to learn along the way.

[/ QUOTE ]
"Cloutier also plays numerous pit games, including craps. [1] It has been reported from multiple sources that his non-poker gambling has greatly diminished his monetary success in life, in spite of having won over $8,000,000 playing cards. [2]"
http://en.wikipedia.org/wiki/Tj_cloutier

By the way, why the hell would anyone want to give "a novice with something to prove" money to manage in a mutual fund?

[Shoe]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Do you realize that you voluntarily compared yourself to someone that throws away money on obviously losing wagers

[/ QUOTE ]

Please explain this part, i'm not sure what/how you mean by it. Serious post, I am trying to learn here, i by no means consider myself an expert. Just a novice with something to prove, but more than willing to learn along the way.

[/ QUOTE ]
"Cloutier also plays numerous pit games, including craps. [1] It has been reported from multiple sources that his non-poker gambling has greatly diminished his monetary success in life, in spite of having won over $8,000,000 playing cards. [2]"
http://en.wikipedia.org/wiki/Tj_cloutier

By the way, why the hell would anyone want to give "a novice with something to prove" money to manage in a mutual fund?

[/ QUOTE ]

I'm only investing in what I consider to be quality stocks here. I am not going to be playing "craps" or the penny stocks or other equivilant of the craps table is to the stock market. Although I do consider myself to have great a great feel for the stock market, similar to T.J.'s great feel for the game of poker, that is where the comparison ends. I do not have the need to partake in other "games" just for the thrill of it or whatever reason it is that he loses so much money at the craps table.

As for "why the hell would anyone want to give "a novice with something to prove" money to manage in a mutual fund?" -- I completely agree with you. That's why I want to make a publicly traded fund (even if I am the only one with $$$ invested in it), so that it has proven results that people can track. If I suck, people will never invest in me. If it turns out that I actually know what I'm doing, then my fund should be able to take off if I consisentently prove, year after year, that I have beaten the market. Maybe I only need to beat the market for 3 years for some people to believe and invest in me, others it might take 40 years, others might never believe. I don't expect anyone to follow my advice until I have a proven track record. If there is a better way to go about that I am all ears.

[kimchi]

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.