Bank of America has added a new investment offering to its Merrill Edge program for mass-affluent investors, the bank announced Wednesday. The new offering — called Merrill Edge Select Portfolios — provides customers with access to actively managed, diversified portfolios and is aimed at the "middle class and the emerging affluent investor," the bank said. The minimum investment is $20,000.
"We are lowering the balance requirements and providing a simple, straightforward way for a broader range of investors to access professionally managed investments," Alok Prasad, Merrill Edge executive, said in a press release.
The new product offers customers the choice of 10 diversified portfolios whose investments are allocated among mutual funds and exchange-traded funds generally invested in stocks, bonds and international investment products, the bank said. The portfolios range from conservative to aggressive.
In addition to a low balance requirement, the bank touts the product's "low, annualized one percent management fee" as well as the Merrill Lynch investment professionals whose responsibility it is to "actively monitor and rebalance the portfolios based on changing market conditions."
The Merrill Edge program provides mass-affluent customers access to professional investment guidance through advisors at both its call center and select bank branches. The program also includes an online self-directed investing platform for customers who prefer to invest on their own.