how does mutual funds and others alike pool so much money ?

Question

how do mutual funds pool tremendous amount of money? is it simply from marketing, with a few marketers from the company goign around and telling ppl to put there money.

is mutual funds just purely marketing thing ? only 8% of fund managers in the world are said to have returning above average returns....

what about hedge funds? do they just track down rich guys and tell them that htey nee dto put there money here.

Is it possible for one to start his own mutual funds, provided he had the start up costs, and experience and knowledge.

Answer 1

Mutual funds were fairly important 20 years and older. The majority of the people just didn't have the access or the resources to make real time decisions.

Now it's because people just don't want to learn or want to spend the time and trust somebody to help them.

This money came from gains in the investments and the amount of people in the mutual funds (I'm talking several thousands if not millions) even from merging mutual funds. Remember, people have theri retirement money in these things.

Rich people don't have much money in the stock market. They have their money in mostly bonds and real estate because they are at a point where they want tp preserve wealth rather than make new money.

Answer 2

Average is a mid-point. So 50% of fund managers are above average.
From a list of mutual funds, pick a no-load one you have never heard of, seen no advertising for and check the amount under advisement. Then look at Money, Smart Money, Kiplinger's Personal Finance magazines and check the ads. Vanguard, Fidelity, T. Rowe Price, are big buyers of ads. Check how much they have under management.
Advertising works.
Hedge funds, the rich guys come to the investment bankers who invite the rich guys to a round of golf at the local exclusive country club where they go into a back room at the 19th hole. Over brandy and cigars the good old boys talk.
Yes it possible for one to start his own mutual fund. Start up costs will be $100,000. plus.

Answer 3

genuine factors isn't that frustrating or complicated, I even have been working with investors for 5 years and have have been given super consequences. in case you think of roughly it, genuine factors will no longer pass everywhere and if it does, you have coverage. suitable now in Indianapolis the city is advertising bulk residences for pennies on the dollar they're appraising for a minimum of fifty 5,000 and you gets a bulk of 10 to twenty at a time for a value nicely under the appreised fee. With alot of my investors I additionally took care of the re-hab and factors administration.