As with many questions, the real answer is “it depends”. To answer the question let’s make some assumptions. Assume the fund wants to maintain an expense ratio of 1.25% or below. Assume the investment advisor fee is 0.75%. And assume the fund chooses to register in all 50 states for blue sky registration. In this instance, a mutual fund will need approximately $15mm in assets to cover its expenses without paying the investment advisor any fees. The fund will need to get to approximately $55mm for the investment advisor to get a full 0.75% investment advisory fee. In order to fine tune such an analysis with different assumptions, give us a call and we can help.