This is your future
- Thread starter marketsurfer
- Start date
0.25% management fee means they only get about 2.5M GROSS from $1B under management?
Yes, but they are not doing anything. Their goal is to scale above a trillion. Nobody is trading. There are no analysts. The program runs itself.
I see. So they basically do nothing but transfer retail money into broad index instruments?
They provide a service. A very simple service but effective one. They allocate your money according to your age and desired risk levels and probably have some sort of automatic deposit program set up so that 10% of your paycheck every month goes into the account. You don't have to deal with some advisor calling you every month about variable annuities or some new structured product that is basically nothing but an index product with massive fees on top that get kicked back to the advisor. It's simple. It works.