Cost
Cost - Transparent
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 with service providers, 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 shareholder reporting costs. Below is a typical list of the annual operating costs for running a mutual fund with $10 million in assets through our services group.
Description 2025 Estimate
Bank Custody
Legal Services
Blue Sky (limited reg.)
Accounting & Shareholder Servicing
Administration
Audit Fee
Shareholder Reporting/Printing/Mailing (Year 1)
Trustee Fees
SEC Fees
Distributor and Compliance Officer
Misc. Expense
Total Expenses
$7,000
$12,000
$5,000
$32,000
$30,000
$12,500
$2,500
$3,000
$1,007
$10,000
$10,000
$125,007
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.
Reach out to Premier Solutions and we will provide you a revenue and expense proforma for your fund for assets ranging from dollar one to well over a billion dollars.
