Quote:
Originally posted by Mmmm, Burger (C.J.)
I would think. It's only if you achieve returns of more than 10% per year before the 20% exceeds the 2%. In a rising market, that's going to happen. But the 2% isn't nothing.
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If the expenses eat up 75% of your 2%, you only need returns of 2.5%.
If the expenses eat up 20% of your 2%, you need returns of 8% per year.
So it depends on the size of fund, since in big funds you can be closer to the 20% and in small funds you can be north of the 75%.
