Mutual Fund Wrap

Mutual Fund Wrap
Also known as a mutual fund advisory program or a wrap account, these programs give investors access to a large pool of mutual funds for one annual fee (usually between 0.5\% and 2\%). In other words, that one fee is supposed to "wrap around" all your mutual fund activity, giving you a clear picture of what is paid to your broker or financial advisor. These mutual fund wrap programs are most often offered by full-service brokerage houses to give customers another pricing option besides paying an upfront commission or surrender charges.

While mutual fund wrap accounts may seem like a transparent way of managing your mutual fund costs, most investors miss a major facet. In most instances, the wrap fee only covers the services provided by your broker, not the actual management fees of the mutual fund itself. These management expenses can range from just a few basis points to 1-1.5% annually, putting your total combined cost as high as 2-3%.


Investment dictionary. . 2012.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Mutual-Fund Advisory Program — A portfolio of mutual funds that are selected to match a pre set asset allocation model based on the investor s objectives and offered in a single investment account together with the services of a professional investment advisor. Typically,… …   Investment dictionary

  • Fund Platform — A Fund Platform (also know as a Fund Wrap or Fund Supermarket) are terms for a type of UK investment vehicle, the basic feature of which is that one has an account with one organisation/provider, within which funds from any of usually several… …   Wikipedia

  • Sub-Advised Fund — An atypical fund structure in which a fund, such as a hedge fund or mutual fund, is managed by another management team or firm than where the assets are held. Sub advised funds are often found in wrap programs or variable annuities. Sub advised… …   Investment dictionary

  • ETF Wrap — A type of special investment portfolio in which an investor, with or without the aid of an investment advisor, invests solely in exchange traded funds (ETFs). The composition of each ETF class is initially based on a preselected asset allocation… …   Investment dictionary

  • ИНВЕСТИРОВАНИЕ — INVESTINGПод И. понимается вложение капитала с целью получения прибыли. Ожидаемая прибыль может быть в виде дивидендов, процентов или увеличения реального капитала. Попытка извлечь выгоду из кратковременных изменений стоимости актива называется… …   Энциклопедия банковского дела и финансов

  • PNC Financial Services — Group, Inc. Type Public Traded as NYSE: PNC …   Wikipedia

  • Barron's Magazine — is an American weekly newspaper covering U.S. financial information, market developments, and relevant statistics. Each issue provides a wrap up of the previous week s market activity, news reports, and an outlook on the week to come.ections… …   Wikipedia

  • The Call (CNBC) — The Call Genre business news program Presented by Larry Kudlow (2008 2011) Melissa Francis (2007 2011) Trish Regan (2007 2011) …   Wikipedia

  • Kiplinger — (pronounced IPA| KIP ling er ) is a Washington, D.C. based publisher of business forecasts and personal finance advice, available in print, on line, audio, video and software products ( [http://www.kiplinger.com Kiplinger.com] ).Its best known… …   Wikipedia

  • Morning Call (CNBC) — Morning Call Genre business news program Presented by Liz Claman Tyler Mathisen Ted David …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”