By broadest definition, wrap products are a form of fee-based investment management. The investor pays a flat fee (based on the amount of invested assets) to have their portfolio invested. The versions of this product that are the most relevant to the bank market are mutual fund wrap accounts and consultant wrap accounts.

Mutual fund wrap programs charge a fee for analyzing a client's investment needs, developing an appropriate asset allocation mix, and selecting a combination of mutual funds. The annual fee for this bundle of services ranges from 1% charged by Fidelity in their Portfolio Advisory Services to 1.5% charged by Shearson in their Trak program.

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