Managed Portfolios vs. Mutual Funds | Vested

What is the difference between Managed Portfolios and Mutual Funds?

Managed Portfolios are often compared to Mutual Funds because both allow investors to access a diversified collection of securities. However, there are several key differences:


Transparency and ownership: With Managed Portfolios, you directly own the underlying stocks and ETFs in your brokerage account. Mutual funds, by contrast, issue you “units” of the pooled fund.


Flexibility: Managed Portfolios give you the ability to sell individual holdings or even customize your exposure, which mutual funds do not allow.


Liquidity: Managed portfolios do not have lock-ins or exit loads. You can redeem anytime, whereas mutual funds may have restrictions.


Cost structure: Managed Portfolios charge a clear AUM-based advisory fee that is disclosed upfront and may differ across portfolios. Unlike mutual funds, there are no hidden charges such as exit loads. You can find the current fee structures for each Managed Portfolio here.


This makes Managed Portfolios a more transparent and flexible alternative for investors seeking international diversification.


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