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From your article: "...even off years are lucrative for the biggest funds: Together, the 10 biggest megafunds earned nearly $3 billion in fees for their respective fund companies in their most recent fiscal years."
As a small investor, buying stock in certain fund companies, such as TROW (T. Rowe Price), might be a way of participating in these profits.
Wisdom Tree(WETF), Federated Investments (FII), T Rowe Price(TROW) and Janus (JNS) issue stocks that individual investors can own.
Here TROW's growth charted against the S&P 500:
(Source Article on these fund company stocks) The Frugal Fund Company That's Up 38% "mutual fund companies are highly scalable businesses. There's not much added cost in managing a $1 billion fund than a $500 million one -- but there's about twice as much revenue, because fund companies collect a percentage of assets. Last year, WisdomTree reported a 59% jump in advisory fees, but only a 26% increase in expenses." http://www.smartmoney.com/invest/stocks/the-frugal-fund-company-thats-up-38-1334066662408/
Here's WETF Growth chart compared against TROW, FII, JNS, and the S&P 500...they all appear as a flat set of lines...WETF grew $10,000 into almost $1.25 million over the last 10 years...in 2004 it grew over 4000%....wowwy:
Dear Bee: If you followed my posts on the old FundAlarm Board, I advocated "if you like the fund then buy the fund company." Over the years I have owned TROW, GROW, JNS, & BEN. Regards, Ted
Comments
From your article:
"...even off years are lucrative for the biggest funds: Together, the 10 biggest megafunds earned nearly $3 billion in fees for their respective fund companies in their most recent fiscal years."
As a small investor, buying stock in certain fund companies, such as TROW (T. Rowe Price), might be a way of participating in these profits.
Wisdom Tree(WETF), Federated Investments (FII), T Rowe Price(TROW) and Janus (JNS) issue stocks that individual investors can own.
Here TROW's growth charted against the S&P 500:
(Source Article on these fund company stocks)
The Frugal Fund Company That's Up 38%
"mutual fund companies are highly scalable businesses. There's not much added cost in managing a $1 billion fund than a $500 million one -- but there's about twice as much revenue, because fund companies collect a percentage of assets. Last year, WisdomTree reported a 59% jump in advisory fees, but only a 26% increase in expenses."
http://www.smartmoney.com/invest/stocks/the-frugal-fund-company-thats-up-38-1334066662408/
Here's WETF Growth chart compared against TROW, FII, JNS, and the S&P 500...they all appear as a flat set of lines...WETF grew $10,000 into almost $1.25 million over the last 10 years...in 2004 it grew over 4000%....wowwy:
Regards,
Ted