That said, there are opportunities to tailor your account. You could, for example, set up a filter to prevent the manager from buying gambling or tobacco stocks. Or if you already own scads of tech stocks in another account, you can request to steer clear of them in your managed account. Some managers, however, may not be willing to go along with such restrictions. And even those who do may warn that limiting their stock selection may hurt the performance of your account.
Cost Comparing the cost of mutual funds and managed accounts can be a murky affair.
For mutual funds, the expense ratio tells you what percentage of assets are being deducted to cover the cost of running the fund. This is one area where managed accounts can have a distinct advantage. With mutual funds you have virtually no control over how often managers sell stocks at a profit and pass those taxable gains along to you. Many, but not all, managed accounts, however, give you some measure of control. Let's say, for example, you've sold several stocks that you trade on your own and you're facing a potentially large tax bill.