Mutual Fund Calculator

Mutual Fund Calculator 2019-07-15T17:18:16-04:00

Should you launch a mutual fund? First, do the math.

Operating a mutual fund can allow you to accept small accounts that your firm cannot current manage in an operational efficient way. Use the calculator below to determine the revenue you may currently be losing by turning away these accounts.

  Sample senario My scenario
Minimums account size I wish I could accept $50,000
Average number of accounts I turn away each week because they don't meet my current separately managed accounts (SMA) minimums 5
Weekly lost SMA AUM (average ideal minimum account size x number of accounts I turn away each week) $50,000 x 5 = $250,000/week
Annualized lost SMA AUM $250,000 x 52 = $13,000,000/year
Revenue earned from investing turned away SMA assets in my own mutual fund after 1 year (lost SMA AUM x 1% management fee) $13,000,000 x 1% = $130,000
Revenue earned from investing turned away SMA assets in my own mutual fund after 2 years (lost SMA AUM x 1% management fee) (assumes same asset growth rate as year 1) $130,000 x 2 = $260,000
Revenue earned from investing turned away SMA assets in my own mutual fund after 3 years (lost SMA AUM x 1% management fee) (assumes same asset growth rate as years 1 and 2) $130,000 x 3 = $390,000
Gross revenue lost over three years from turning away SMA accounts instead of moving them into a mutual fund over three years. Year 1 + Year 2 + Year 3 = $780,000


Please note: this calculation does not take into consideration the start-up costs, ongoing operational costs, or sales/marketing expenses of a fund. These fees can vary based on structure, strategy, and distribution plan.

Operating a mutual fund does have significant costs, so launching one doesn’t always make sense, even if you’re turning away SMA revenue. But that’s where Gemini can help. We will consult with you about your business, your strategy, your current clients, and your resources to determine if starting a fund is financially prudent and potentially lucrative for your firm. Contact a member of our sales team for an analysis.

7774 GFS 9/18/2018 | 2139-NLD-10/2/2018