Management Fees  continued

   If you invest in mutual funds, you pay management fees also. A mutual fund is the consolidation of many client investments into one account, which is managed by a money manager who charges the fund a fee. The mutual fund investor pays a pro-rata share of the expenses of the fund, including auditing, custodial services, and management fees. 
The total expenses may run from one to two per cent and are deducted from the assets held by the fund. You can hire SCM within the range of the costs of a mutual fund and have the advantage of an individually tailored portfolio of stocks or bonds with a money manager to whom you can talk. Also, tax liability can be better controlled for taxable accounts. Hiring SCM Associates is a great way to know at any moment how a full-time, professional money manager is investing your money.