If your firm is considering opening a mutual fund and is searching for information on start up cost and ongoing cost of running a mutual fund you have come to the right place.
We have found that the reason most money managers are deterred from starting a mutual fund is that their impression of initial start-up costs and ongoing costs of running a mutual fund are invalid. Most advisors and analyst believe that in order to have any chance of covering start-up and operating costs, a fund must be $100 million in asset size. These impressions are simply not valid. In fact, quite the opposite is true.
Ongoing expenses of a mutual fund consist primarily of legal costs, annual auditing fees, custody fees, transfer fees, fund accounting costs, printing fees, postage, state registrations and, management fees. All of these expenses can be kept to a reasonable level by using Premier Fund Solutions and our team of highly dedicated mutual fund professionals who have more than 50 years of experience in the mutual fund industry.
As the number of mutual funds have grown from a few thousand in the mid-1980’s to the level that exists today, many Registered Investment Advisors and money managers have joined the ranks of the larger money management institutions by starting mutual funds. We specialize in providing services to small and medium size mutual fund entities at a much more reasonable price than the large institutions.
All funds, large or small, must compete for client dollars based on their ability to generate a competitive return. Most of the fee advisors that we work with who have started funds were already good money managers and had a solid history of producing competitive returns for their managed accounts. The combination of good money management and a tight rein on the expenses mentioned above will make your fund competitive at almost any size.
The reward of starting a mutual fund is that it often becomes the money manager's largest account. An additional benefit is that this “largest account” is often the most stable account the money management business has under its control and one which will be the easiest to sell when the fee advisor/manager decides to retire.
The cost of securing the necessary expert help in getting a fund started and keeping it running is now within reach of nearly any fee advisor who wants to start their own fund.
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