What is a Wrap Account?
April 4, 2008 by Josie Kay · Leave a Comment
Q. What is a Wrap Account and what are the advantages of having one?
Josie’s Answer - Sometimes Wrap accounts are also known as master trusts. Basically they are an “administration service” that allows you and other investors to pool your money, so that you can access managed funds at wholesale prices.
For example, the investment management fee for the average retail managed fund is approximately 2%, whereas the average for wrap accounts tends to be 0.5 – 1.5%.
The cost depends on what the fund manager wants to charge (some think they are better than others! But are they?). Read more
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