Premier Fund Solutions, Inc. is available to discuss the proprietary mutual fund business. Members of investment advisory firms, financial institutions, brokerage firms and banks are typical candidates for the fund business. We welcome your call to discuss the topics below. Potential clients should have the ability to deposit $10 million in assets to their new fund complex at inception.
It is commonly thought that it takes between $50 to $100 million to break-even for mutual funds and that start-up costs run into the $100,000 plus range. With proper planning, new funds are capable of attaining profitability in the $10 to $15 million dollar range and start-up costs for a new fund complex are as low as $40,000.
How Mutual Funds Are Formed
A. The Business Trust 1. Trustees 2. Trust Options B. The Series Fund
Start-up Costs and Ongoing Costs To Run a Mutual Fund
A. Time To Market B. Annual Operating Expenses
Requirements For Managing a 40 Act Mutual Fund
A. Transfer Agent B. Fund Accountant C. Administrator D. Custodian E. Independent Auditor F. Legal Counsel
A. How Will The Fund Be Distributed? B. What Are The Costs of Distribution? C. What Is Your Market?
Annual Filing Requirements
A. Prospectus B. Statement Of Additional Information C. Annual and Semi-Annual Reports D. Tax Returns
Consider the following:
A mutual fund often becomes the largest managed account for money managers.
Income from managing a mutual fund is relatively stable and there is generally less risk of a sudden loss of significant assets.
A mutual fund creates a public track record.
Mutual funds can be less expensive to run than hedge funds and give investors much more flexibility with account access.
A mutual fund is a cost-effective way to manage small accounts and advisors that have high minimums can place small clients in their mutual fund.
A mutual fund gives managers broad distribution through leading brokerage firms.