Final answer:
A wrapped account bills a single annual fee for services including asset allocation, portfolio management, and executions. It's targeted toward investors looking for a comprehensive and hands-off approach. The fee encompasses professional management and personalized investment strategies.
Step-by-step explanation:
The type of accounts that bill a single fee annually for a group of services, including asset allocation, portfolio management, and executions, is often referred to as a wrapped account or wrap account. This is a comprehensive investment solution where an investor is charged one single, consolidated fee for the bundle of services, providing convenience and the potential for more consistent management of the investments. Wrapped accounts are an appealing option for individuals looking for a hands-off investment approach.
With a wrap account, the annual fee typically covers the management of a diversified portfolio, financial advice, and administrative services. A key advantage is the personalized nature of these accounts, allowing for tailored asset allocation strategies to align with the individual investor's goals and risk tolerance.
Furthermore, wrapped accounts offer the benefit of having investments being handled by professionals who can execute necessary trades and adjustments on behalf of the client. While there is convenience and expertise at hand, investors should also be aware that fees may vary and should be compared against the potential benefits and cost savings from direct management.