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Mutual Funds Advice – How to Decide Between Mutual Funds and Managed Accounts – Part 2

Managed accounts also give you control over customization. This means that, for instance, if you own a large amount of the stock of the company you work for (the company is part of the strategy of the account manager), and this makes your position too concentrated, you tell the manager to exclude this stock from the portfolio.

Mutual funds can be invested into with as little as $100. Managed accounts are for the more wealthy: less than $100,000 and don’t even think about it.

Mutual funds are subject to an combines annual operational fee, made up from the so-called 12b-1fees. Managed accounts also have annual fees, and they are competitive with those of mutual funds. However, the more you invest in managed accounts, the less you pay in percentage terms.

Mutual funds are simpler to open and close than managed accounts.

Managed accounts can be somewhat limiting for investors who want more specialization. For industry specific categories and high yield bonds, mutual funds offer more choice.

So there you have it. Some useful mutual fund advice and something to ponder over if you are in a position to open a managed account. Mutual funds are the number one investment tool, but this could well over the next few years!

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The information supplied in this article is not to be considered as medical advice and is for educational purposes only.