Many high-net-worth individuals object to using mutual funds because of the individual investor's lack of control over taxes, their lack of any input into investment decisions, and the absence of "high-touch" service. The use of ________ respond to all these limitations of mutual funds.

Question

Quizplus · Accepted Answer

Separately Managed Accounts (SMAs) provide individual investors with greater control over taxes, investment decisions, and personalized service compared to mutual funds. SMAs allow high-net-worth individuals to customize their portfolio and manage tax liabilities more efficiently. Additionally, investors can have more direct communication with their portfolio manager, providing a higher level of service. ETFs and RICs are also options but do not fully address all the concerns listed.

Many High-Net-Worth Individuals Object to Using Mutual Funds Because of the Individual