Mutual-Fund Advisory Program

AAA

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".

INVESTOPEDIA EXPLAINS '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.

VIDEO

RELATED TERMS
  1. Separate Account

    1. A privately managed investment account opened through a brokerage ...
  2. Multi-Discipline Account

    A type of investment account that allows access by several specialized investment ...
  3. Vice Fund

    A mutual fund that invests in gaming, such as casino operators ...
  4. Wrap Account

    An account in which a brokerage manages an investor's portfolio ...
  5. Asset Allocation

    An investment strategy that aims to balance risk and reward by ...
  6. Asset Management

    1. The management of a client's investments by a financial services ...
Related Articles
  1. Wrap It Up: The Terms And Benefits Of ...
    Options & Futures

    Wrap It Up: The Terms And Benefits Of ...

  2. That's A (Mutual Fund) Wrap!
    Mutual Funds & ETFs

    That's A (Mutual Fund) Wrap!

  3. What is a wrap account and what are ...
    Retirement

    What is a wrap account and what are ...

  4. Will ETFs Eventually Replace Mutual ...
    Mutual Funds & ETFs

    Will ETFs Eventually Replace Mutual ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center