Drizzle Fund

This is a business idea I devised only during the later part of today (2025-3-31)... a Drizzle Fund.
A Drizzle Fund is a somewhat actively and somewhat passively managed fund, and is operated similar to how some middle-class value investors dabble in the stock market by themselves. A Drizzle Fund is a better type of fund for value investors.

A Drizzle Fund only buys, holds, and sells stocks in qualifying stock exchanges. A qualifying stock exchange must have strict reporting requirements, and must have a proven track record for any stock having significant positive returns that outpace inflation on average.

All of that is a requirement so the Drizzle Fund would have decent expected ROI even if it only randomly bought stocks and never sold those stocks unless it needed to. Any USA stock exchange would meet those requirements.

The total fees for any investor in a Drizzle Fund must be under 0.5% annually (or a chosen percentage lower than that). A Drizzle Fund limits how actively managed it is to ensure that it never exceeds that chosen percentage.

That doesn't mean that a Drizzle Fund wouldn't be managed by a world-class value investor; I think it should be. But, it would likely mean its top-level manager wouldn't be spending a lot of his/her time managing the Drizzle Fund.

A Drizzle Fund would be managed only with value investing principles. A Drizzle Fund would avoid selling the stock its holding unless it needed to or the stock being sold was significantly enough over-priced, and stock would be attempted to be purchased with as much margin of safety as possible.

BTW, a Drizzle Fund could be an ETF. I'm using the term "fund" in a broad sense.

A Drizzle Fund would have greater expected ROI than an index fund, mutual fund, and hedge fund. There's never been a Drizzle Fund before (to my knowledge), but that's based on statistics from the stock market's history.

I named this type of fund a "Drizzle Fund" because this fund would only be getting a "drizzle" of active management.

This idea was only developed during the later part of today, so there would likely be some other things I'd add/modify if I developed and critiqued this idea for some additional time.

An index fund has greater average ROI than a mutual fund, but (in theory) a Drizzle Fund would have greater average ROI than an index fund based on history. And, I think Drizzle Funds would indeed gain a track record for having greater ROI if they existed.

I think a Drizzle Fund would be great for long-term investors. I think a Drizzle Fund would also be good for short-term investors because an undervalued stock is more likely to have greater ROI than an overvalued stock in any given day.

SS5.org/2025/03/31/drizzle-fund-description