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Goodbye, And Many Thanks, To My Favorite Mutual Fund Ever : Royce Select Fund
I'm not quite sure what to make of the story. Royce created a fund that was impossible for most investors to get into and then was surprised, as it seems the author was, that most investors paid no attention to it.
I've been watching the fund for years, but its two entry barriers placed it outside our coverage universe:
1. "Only 'qualified investors' may invest in the Royce Select Funds. A “qualified investor” ... has a net worth ( excluding the value of the primary residence) of more than $2,000,000; or ... owns Fund shares having a net asset value of at least $1,000,000. "
2. The minimum initial investment for qualified investors is $50,000.
The fund has now eliminated its variable-fee structure and, thus, escaped the first, SEC-imposed hurdle but the $50,000 minimum remains.
Comments
I've been watching the fund for years, but its two entry barriers placed it outside our coverage universe:
1. "Only 'qualified investors' may invest in the Royce Select Funds. A “qualified investor” ... has a net worth ( excluding the value of the primary residence) of more than $2,000,000; or ... owns Fund shares having a net asset value of at least $1,000,000. "
2. The minimum initial investment for qualified investors is $50,000.
The fund has now eliminated its variable-fee structure and, thus, escaped the first, SEC-imposed hurdle but the $50,000 minimum remains.
David