Individually-Managed Accounts Are Offered Online
May 15, 2000
RunMoney.com, an Internet-based investment adviser, last week began offering customized individually- managed accounts online.
RunMoney.com is promoting itself as the, "customized alternative to mutual funds." These accounts require a minimum investment of $100,000, and carry an annual fee that will range from one percent to 1.5 percent, depending on the amount of assets under management. The fees are no less than those charged for individually-managed accounts not sold online, according to the American Institute for Money Management in Washington, D.C.
The site claims that, when compared with mutual funds, managed accounts can result in significant tax savings over a 20-year period.
Clients can select a money manager based on individual investment style, discipline and risk tolerance, RunMoney said. First Clearing Corp., a division of First Union Bank Corp., is providing client custody and trading for RunMoney online accounts.