How to create a mutual fund

Private investment through mutual funds is the lifeblood of economies around the world. Opening your own private investment management fund will turn out to be a difficult task, but with dedication, knowledge and some luck, you can conclude a very favorable agreement with your clients.

You will need

• - Investment strategy;

• - good marketing;

• - investors.

Instruction manual

1

Determine what investments you will take, which market area the company will occupy. Private equity funds most often work with activities such as financial transactions with stocks and bonds. Many funds calculate commodity futures, build various currency and option strategies.

2

Open your fund. This is fairly straightforward if you plan to remain its owner or operator. It is important to decide in which area your clients will invest, and how to dispose of capital correctly and according to the chosen direction. If you are going to immediately carry out larger operations, as well as hire several employees, then think about the possibility of organizing a fund through a departmental line. So you can open departments that will begin to work with bonds, currency and goods, as well as departments for investor affairs and administrative matters. A senior employee should be appointed at the head of each of them.

3

Think about the type of entity that suits you. Most investment mutual funds are organized in the form of a mini-corporation or limited liability companies. Make an appointment with a personal accountant and discuss the most appropriate tax status. For example, when choosing the LLC form, you can only rely on the tax corresponding to the given enterprise.

4

Register with the law authorities. Most mutual funds require registration for securities and exchange transactions, but if your fund specializes in other types of transactions and products, then it is quite possible that you will be invited to an interview with the National Futures Association and the Commodity Futures Trading Commission.

5

Start attracting investors. They can become both individuals and institutions. Follow the rules regarding working with private data, analyze the risks and benefits of your investment fund.

Mutual investment fund.