Chapter 26. Comparing Mutual Funds With Separate Accounts
Separate accounts combine into one fee-based alternative the convenience of a mutual fund with the control of a brokerage account. However, there is a big difference between mutual funds and separate accounts that becomes important for a number of investors. Many mutual funds require an initial investment in the range of $2,000 to $3,000, and in some cases the amount can be as low as $1,000. (Initial investments are even lower for retirement accounts.) Separate accounts, on the other hand, typically require a minimum of at least $100,000 to $250,000, and in some cases it could be higher.
As more competition in this area occurs, the minimums will probably drop. Some people argue that separate ...
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