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starting mutual fund

naveednaveed subscriber Posts: 2
edited May 2007 in Business Planning
hi iam a university student i would like to start university equity fund. i will collect the fund as per share value from each student and i will trade with that money.
i would like to know which idea will be better that can protect me below are ideas:
1. should i collect fund from them as normal way and trade with equity and give them profit according to there % of investment.
2. should i collect money in terms of share value like one share $1 and accumulate the shares then trade with that in S&P500 equity fund. what ever our fund net asset value will be there according to that they can redeem after market closed and make money. BUT the main point is that i dont have single penny so how can redeem it and give them there redeem value. v calculat NAV after market closes but i did not liquidate any share so how can i pay them the redeemtion value because v will calcuate NAV after market closed but i did not liquidate them.
3. Same plan as i discuss in 2nd idea but instead of redeeming it i thought of let them trade my FUND between students or others in university (but our university strenght is 15000 stds only).  according to the NAV. for eg: we will display our NAV as Share pirce of our university equity fund and let the student trade them which will help them to learn more about stock market. in this point am i safe or no. i terms of redeemtion.
kindly request members to REPLY ASAP its Urgent.
Thank You 


  • Options
    cuttscutts subscriber Posts: 4
    You need to be very very careful here as there a hosts of US laws relating to this area and you dont want to run foul of any of them as the penalties are severe. I suggest you talk with an attorney before you do anything.
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