I visited a random thread. Good lord, these fees. I wonder if this can even be posted in the coffee room.
https://keskustelut.inderes.fi/t/proprius-partners-micro-finland-erikoissijoitusrahasto/
So if I put in the 50k minimum, I’ll pay €600 in management fees in the first year. Sure, trading in small caps is expensive. And if, by luck or skill, the fund beats the benchmark index, 20% of the outperformance goes to them. If the fund gets a beating from the benchmark, the fund doesn’t participate in the costs. No confidence in their own work? A classic “I win, you lose” type of solution.
If the fund managers had actual expertise, why would they take external capital? In Helsinki micro-caps, even small buys/sells push the price in exactly the wrong direction. Therefore, if they had their own expertise, they would under no circumstances take external money, because it lowers returns.
With that fee structure, I could quit my day job, start a fund, and leave the stock purchases to a rand() algorithm. I’d answer questions on the Inderes forum from an office in the Bahamas. The fund’s thread title could be corrected to: Proprius → Voxtur into Helsinki Stock Exchange micro-caps.