All Wrapped Up: Could A Fee-Based
Investment Program Make Sense For You?

Wrap account portfolios typically consist of securities - stocks bonds, mutual funds, and other similar market-type assets. The name refers to the fact that these accounts usually "wrap" a variety of investment services, including brokerage commissions, under a flat fee, or a percentage fee - usually from 1 to 3 percent of your portfolio's total market value.

Professional management is another advantage offered by wrap accounts. Because most brokers have access to a number of different money managers, they can match the appropriate money manager with a specific client - based on the client's individual characteristics, such as risk tolerance and financial goals.

There are two kinds of wrap accounts - traditional and mutual fund. Traditional wrap accounts consist of individual securities such as stocks and bonds. Modeled after the first E.F. Hutton accounts, most require a minimum investment of between $100,000 and $200,000. The following services generally are included: