Question : How could I start a MUTUAL FUND at age 14?
How could I start a MUTUAL FUND at age 14? Me and my friend are very entreprenuric and have been studying this stuff all are lives and know a lot of contacts and people who do these kind of things.
- asked by Investing Beginner
All Answers:
Answer #1
By investing in solid companies on your ownbehalf? Create your own mutual fund.
- answered by smiling_freds_biz_info
Answer #2
First create a mock portfolio so that you canestablish some history. People will be reluctantto part with their money to very young managersunless they have a reason to believe you'll dowell.Set up a mock portfolio on a site likexearn.com, so that people can see how good you andyour friends are. You could all co-manage aportfolio on xearn.com.
- answered by Raw L
Answer #3
You need serious credentials to manage a fund. Idoubt anyone would trust a 14 year old to manage amutual fund unless he is a proven finacialistgenius/expert. You would need some seriousbacking from financial experts to be trusted bynormal people. A degree from a respected businesscollege would probably be your first step. Don'twant to crush your dream but goodluck it is nothappening.
- answered by rudobe85
Answer #4
Ok there are two ways to do this.Number one: closeyour eyes and think really, really hard, and maybeit will come true. If it doesn't, try again. Repeat for about twenty minutes.Number two: put afew financial reports under your pillow. Themutual fund fairy should come and sprinkle youwith fairy dust.I hope you have a sense of humor. You are too young to even own your stocks (age ofmajority is 18+) so you would be 18 and yourparents would be managing the fund for you. Youwould have no background, and nobody would giveyou their money. Even if they would, why wouldthey give their money to a genius 14-year old whenthey can give it to a genius 40 year old whendoing something "all their lives" really meanssomething? I'm sorry to burst your bubble here,but you are likely looking at a four year college,becoming an analyst, and rising to the top orwaiting until you are reputable as an analyst forseveral years. Anyway, I myself am 18, and haveput about 350 hours into the market. If you doknow what you are doing, and it sounds like youmay, feel free to email me and we can shareideas.P.S. - why not learn to trade? Four yearsof experience and when you turn 18 you won't needto work a day in your life (assuming you have adecent sized trading account by then)! I wish Istarted back when I was your age. Good luck.
- answered by Kevin S
Answer #5
Well, to put it simply....you can't!!!!!!!!!!!TheSEC will never let you do this. To even get theproper licenses (most states would require you toearn your Series 7 and a Series 63 or 66), youwould have to work for a securities firmrecognized by the National Association ofSecurities Dealers (the NASD). No such investmentfirm would ever even consider hiring a14-year-old, let alone sponsoring your for yourdealers licenses! The cost to the firm issubstantial.I suppose if you had a few milliondollars kicking around, you could just start yourown company and try to get licensed by the NASD,but that would take a few years, and severalhundred thousand dollars, if you ignore all of theSEC requirements you would have to meet.To evenpass your NASD license exams would take hundredsof hours of diligent study, never mind anunderstanding of the technical aspects of financethat I can guarantee you that you do not have.Andfor what? So your middle school friends couldinvest with you? Good luck making any money as amanager from that! Even if you maxed outmanagement fees, and took more than 5% of AssetsUnder Management (AUM) annually, and got 50buddies to invest $2k each, you would only bemaking $5k/year! You would have no shot at evenbeing able to pay for a lawyer to submit theregulatory paperwork for that!Just start aninvesting club if you really want to, but really,you will not even have a shot at being a mutualfind manager for about another 20 years.
- answered by what?
Answer #6
You will not get approval from the SEC. since inthe US you must be 18 years old to enter into acontract, there are some states that require theage of 21Other than that minor problem. it's verysimple, Just file the proper application form withthe Securities & Exchange CommissionMake sure youhave at least $50,000 of net capital (not paidin) and have it audited that there is in factsufficient capital on hand, the audit must becertifiedBe prepared to file a prospectus with theCommission along with your application fee, andthe prospectus must have a bonifide legal opinionattachedHave a full & complete business plan,addressing the investment objectives and the typeof investments that will be made. The types &objectives must be specific.Have a full & completedetailed explaination of the record keeping thatwill be employed and the backup systems that willbe inforce.Detail description of the clearingprocess of all transaction, including all re-orgprocesses, dividends, and transfer (both regular &legal) that will be employed and the procedurefor the safekeeping of securities. A detaildescription of sales solicitation and advertisingmaterials.There are other items that you will beneeding, but when you file your application, theCommission will provide a list of other areas thatyou need to address before approval will begive.You can also get some help by refering theSecurities & Exchange Act of 1933 & 194To start afund you do not need to be registered, as anindividual, with the FINRA (NASD) as one respnderhas stated.
- answered by A nobody
Answer #7
First of all dont let anyone discourage you.Second of all forget mutual funds, they aredinosaurs of the past, look into starting a hedgefund instead. If you can generate and auditreturns of over 15 to 20% for about 2 or 3 yearsyou can easily set it up before you are 18.Thereturns HAVE to be with real money. No one willgive you money for papertrading. So invest in youreducation and hit the markets at a young age.
- answered by Boris
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measure and fulfill your financial needs
