Folio investors own company stocks directly. This means that Folio investors are entitled to vote on issues affecting the company. Professional vs. individual management . Mutual funds are managed by investment professionals. Funds usually employ a staff of analysts and researchers who sift through stocks looking for the best investments, and they charge an array of fees for providing this service.
Fund managers trade stocks on behalf of their funds' investors.
Folios, on the other hand, are managed by individual investors themselves, who have complete control over which stocks to include in their Folios. They can buy and sell stocks whenever they choose to do so. Taxable distributions vs. control . Investors have little control over the taxes that stem from their mutual fund distributions. They also decide whether to own stocks that pay dividends.