Four Top Institutional Funds and How to Get In
Crash the party to get great managers at low prices.
Institutional funds have lots of appeal. They typically have good managers running disciplined strategies. They typically attract sober investors who won't jump in and out all the time, running up commissions on the backs of long-term investors.
Most importantly, they usually charge much less than most retail funds. Institutional funds don't have 12b-1 fees, and they also save money by not servicing many small, high-cost accounts. Of course, that does you no good if you can't get into them, but some are actually pretty easy for individual investors to access.
The word 'institutional' can be applied however a fund company chooses to, so you'll see a wide variety of investment minimums and barriers to entry. Here are a few of my favorite institutional funds and how you can get in.
Russel Kinnel has a position in the following securities mentioned above: HACAX. Find out about Morningstar’s editorial policies.