High investment minimums vs. Mutual Funds.

depends on the SMA

you mainly want to look at it soley from a cost standpoint.  considering # of transactions, and the types of investments they are wanting to buy.  very broad question.

A few weaknesses of managed money:

    1. High investment minimums

    2. Very difficult to get proper diversification with less that 1 million.

    3. Large 10-99 at end of year

    4. Client sees individual stock holdings on statements which leads to "why do I own a dog like PFE?"

    5. MM is meant for high net worth individuals that want control of their holdings (old stock they are married to).  Unfortunately, less that 8% of clients actually use this.

    6. high expense for first 500k to 1 million

    7. Managers usually have a much shorter track record that many mutual fund managers.

    I use both Managed accounts and mutual funds, but I've found that best of breed C-share funds are less expensive for the client and raise less questions about performance and fees that separately managed accounts.

Why would someone with over $1m pay fees in a mutual fund and then pay you another fee to manage it?  For that type of money they customer will pay less expenses and have more control with SMAs.

I agree with Uncertainteeeeeeee

Did I spell that right?

Aceeeeeeee