How is a Personal Fund different than a mutual fund?

A Personal Fund is different than a mutual fund in 3 main ways.  First, you own the securities directly and personally in a Personal Fund, allowing for customization to your needs.  In a mutual fund, it’s a “one size fits all” approach, where you own a share of the overall fund with no flexibility or control to adjust the holdings to your specific needs.

 Second, Personal Funds are actively managed to be as tax efficient for you as possible by avoiding short-term realized gains and offsetting gains and losses whenever possible.  Mutual funds distribute gains to every shareholder regardless of your personal performance or whether you made or lost money in the fund.

 Third, Personal Funds cost less than 1%, including advice, portfolio management, asset custody, and trading costs.  Mutual funds have visible and hidden costs with an average expense ratio above 1%.  Hidden costs for trading and marketing can add another 1%, and if you buy mutual funds through an advisor, total annual cost can run 2-3%.

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