Well, it is also unfair to invest in a fund and have your money go out as phantom profits to other investors to boost the very fund. (disclosure: I haven't been

Well, it is also unfair to invest in a fund and have your money go out as phantom profits to other investors to boost the very fund. (disclosure: I haven't been in either situation, to my knowledge). So lets say it is unfair on both sides, but we want to come up with a policy that will optimize behavior in the future. What is the effect of this policy?