Eight Simple Steps to Starting Your Own Mutual Family

Step Three: Recruit Directors for the Fund Board

See Other Steps Step 1 Step 2 Step 4 Step 5 Step 6 Step 7 Step 8

The mutual fund board controls the investment company and approves all of the hiring, firing and selection of the vendors to the investment company which itself has no employees. Currently, SEC rules require that no fewer than 40 percent of the directors on a fund board must be independent.

Companies such as DAK Associates help find candidates for mutual fund board posts.

Editor's note: This article is part of The MFWire.com's eight-step primer for starting a mutual fund family. 

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