Wrap Fee


DEFINITION of 'Wrap Fee'

A comprehensive charge levied by an investment manager or investment advisor to a client for providing a bundle of services, such as investment advice, investment research and brokerage services. Wrap fees allow an investment advisor to charge one straightforward fee to their clients, simplifying the process for both the advisor and the customer.


Wrap fees are generally set up to be a percentage of the assets under management. The wrap fee is intended to provide payment for all the direct services the customer receives, as well as cover the administrative costs incurred by the investment firm.

  1. Mutual Fund Wrap

    Also known as a mutual fund advisory program or a wrap account, ...
  2. ETF Wrap

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  3. Wrap Account

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

    A service charge assessed by a broker or investment advisor in ...
  5. Fund Of Funds

    A mutual fund that invests in other mutual funds. This method ...
  6. Broker

    1. An individual or firm that charges a fee or commission for ...
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