Managed accounts vs. mutual funds

Managed accounts are like mutual funds in some ways, and like regular brokerage accounts in others. The chart below offers a side-by-side comparison.

	Standard brokerage accounts	Managed accounts	Multiple- discipline accounts	Mutual fund wraps	Mutual funds

Formal investment objective	No	Yes	Yes	Yes	Yes

Professional portfolio management	No	Yes	Yes	Yes	Yes

Asset-based fee	No	Yes	Yes	Yes (does not include mutual-fund expenses)	Yes

Direct ownership of individual stocks and bonds	Yes	Yes	Yes	No	No

Control over capital gains and losses	Yes	Yes	Yes	No	No

Control over portfolio contents	Yes	Yes	Yes	No	No

Portfolio rebalancing	No	No	Yes	Yes	No

Reporting on portfolio contents	Quarter (current information by request anytime)	Quarter (current information by request anytime)	Quarter (current information by request anytime)	Quarter (current mutual-fund holdings by request anytime), but semi-annual for underlying securities	Semi- annual