Mutual-Fund Advisory Program


DEFINITION of 'Mutual-Fund Advisory Program'

A portfolio of mutual funds that are selected to match a pre-set asset allocation model based on the investor's objectives and offered in a single investment account together with the services of a professional investment advisor. Typically, investors won't be charged separate transaction fees, but periodic (i.e. monthly/quarterly/yearly) asset-management fees based on the average value of assets held within the account. Also known as a "mutual fund wrap".


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BREAKING DOWN 'Mutual-Fund Advisory Program'

Unlike managed accounts where the financial advisor has full discretion over any investment decisions, mutual-fund advisory programs allow the investor to work with the advisor in developing the optimal asset-allocation strategy. The advisor will help determine which model is best based on various factors such as the investor's goals, risk tolerance, time horizon and income, while providing ongoing guidance and investment support.

  1. Risk Tolerance

    The degree of variability in investment returns that an individual ...
  2. Asset Management

    1. The management of a client's investments by a financial services ...
  3. Wrap Account

    An account in which a brokerage manages an investor's portfolio ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Investment Advisor

    As defined by the Investment Advisors Act of 1940, any person ...
  6. Asset Allocation

    An investment strategy that aims to balance risk and reward by ...
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  1. What is a wrap account and what are the advantages of using one?

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    The Vanguard mutual fund family is one of the largest and most well-recognized fund family in the financial industry. Its ... Read Full Answer >>
  3. Which mutual funds made money in 2008?

    Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
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    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
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