Private Portfolio Group A managed account is a customized stock, bond or balanced portfolio directed by a professional portfolio manager to seek the needs of the individual investor. These portfolios also offer greater tax management capabilities than most mutual funds. A mutual fund is an investment company that invests in stocks, bonds or other securities on behalf of individual investors with similar financial goals.
Investors pool their money together for a common purpose as shareholders of the fund.
Both managed accounts and mutual funds apply the use of professional investment managers to construct diversified portfolios of securities designed to meet the objectives of individual investors. Cost differences exist between no-load mutual funds, load mutual funds and managed accounts. Investors purchasing no-load funds directly may be able to save money, but when compared to managed accounts, these investors must weigh the opportunity costs of not considering services such as investment planning, asset allocation strategies, investment manager selection and performance monitoring. No-load funds are purchased without a sales charge and generally, without the advice of a Financial Consultant. However, some Financial Consultants now provide access to no-load funds as part of a comprehensive range of services and charge a fee that tends to offset the lack of a sales charge.