Ideal structure of an investment fund

What is the ideal structure of an investment fund for long term investments? Is it an indexed fund?

REPLY:

Here is my concept. The ideal structure has the following features:

* no upfront sales charge (except for a modest transaction fee)
* low fund management fee
* low expense ratio
* preferably an indexed fund, but with a certain margin to deviate from the index

It should be cheaper to invest in a fund, compared to buying a stock on the exchange.

The fund management company can cover its expenses and make a modest profit from the management fee. If the fee is high, the investor has the right to withdraw from the fund and invest elsewhere. This ensures that the fund will always be operated efficiently, for the benefit of its investors.