Cost
The cost of securing the necessary expert help in getting a mutual fund started and keeping it running is now within reach of nearly any fee advisor or investment manager who wants to start their own fund.
Initial setup cost for a mutual fund through our service is approximately $20,000 to $25,000. This includes legal fees, prospectus and SAI development, SEC filings, contracts for service providers, 500 investor packages (prospectus, application, return envelopes) and web page development. Setup costs typically run between $75,000 to $100,000, and up for other service providers.
The annual costs of running a mutual fund primarily consist of bank custody fees, legal services, annual auditing fees, transfer agent and accounting fees, fund administration fees, trustee fees, state registrations and printing/mailing cost. Below is a typical list of the annual operating costs for running a mutual fund with $10 million in assets through our services group.
The cost of securing the necessary expert help in getting a mutual fund started and keeping it running is now within reach of nearly any fee advisor or investment manager who wants to start their own fund.
Initial setup cost for a mutual fund through our service is approximately $20,000 to $25,000. This includes legal fees, prospectus and SAI development, SEC filings, contracts for service providers, 500 investor packages (prospectus, application, return envelopes) and web page development. Setup costs typically run between $75,000 to $100,000, and up for other service providers.
The annual costs of running a mutual fund primarily consist of bank custody fees, legal services, annual auditing fees, transfer agent and accounting fees, fund administration fees, trustee fees, state registrations and printing/mailing cost. Below is a typical list of the annual operating costs for running a mutual fund with $10 million in assets through our services group.
A $10 million fund with
a total operating expense ratio of 1.5% generates
$150,000 per year in revenue netting approximately
$24,993 in revenue after expenses. As the fund grows,
the net income to the advisor dramatically increases
as a percentage of operating cost increases at a much
lower rate. Actual expenses and net income are for
example purposes only.
| Description 2024 Estimate | |||||
| Bank Custody | $7,000 | ||||
| Legal Services | $12,000 | ||||
| Blue Sky (limited reg.) | $5,000 | ||||
| Accounting & Shareholder Servicing | $32,000 | ||||
| Administration | $30,000 | ||||
| Audit Fee | $12,500 | ||||
| Printing/Mailing (Year 1) | $2,500 | ||||
| Trustee Fees | $3,000 | ||||
| SEC Fees | $1,007 | ||||
| Distributor and Compliance Officer | $10,000 | ||||
| Misc. Expense | $10,000 | ||||
| Total Expenses | $125,007 | ||||