If you have read any of my previous posts you will know I am not impressed with financial advisors and even less impressed with mutual funds. The problem is that they are not paid commensurately with their results.
As an investor I don't think someone else, someone supposedly helping me, should make more money off of my money than I do. I don't mind paying money, even more money, if I'm making money, but nothing pissess me off more than paying money while I loose money. A fund operator should never ever ever make more money than the investor.
So, I have a great idea! I want to start a mutual fund or ETF that only collects a fee when it preforms and you make money.
It would work like this;
Say the fund charges a 2% fee. If the fund makes more than 2% the operator gets the full fee. If the fund makes less than 2% the profit is split. If the fund looses money the fund operator gets nothing.
This way the goals of the fund operator are aligned with the investors. I wouldn't even mind paying a percentage more to get results.
I wonder if any mutual funds have balls enough to do it. Now, just to get an appointment with a ballsy mutual fund. Hmmm.
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