Comment by tpeng

Funds frequently return capital or close to new money in order to stay below their investment capacity. Funds also sometimes charge less than the maximum they can get away with for various reasons. The premise of your argument is simply wrong. Moreover, you are ignoring the very real excess profits that are made on the way to this hypothetical equilibrium. Berkshire Hathaway shares aren't going to make you rich if you buy them today, but I'm guessing the people who bought them in 1970 don't care.