Funds sell simplicity, but what you actually get is an expensive cage for your capital.
The setup story sounds good: wire money, sign paperwork, you're done in an hour.
Then reality hits.
Your capital is locked for months. You're paying 1-2% annual fees whether the fund is winning or bleeding. Managers make moves optimized for AUM growth, not your returns. And when you finally want out, you wait in line while the market moves without you.
SMAs flip this completely.
Yes, opening a brokerage account takes an afternoon instead of an hour.
But once the setup is done, everything changes.
You see every trade in real time. Not just quarterly reports where you're left guessing what positions changed three months ago. No redemption windows, no lock-ups. Stay in as long as you're happy.
Your strategies execute across hundreds of markets simultaneously. Funds are trapped by their prospectus. SMAs move at the speed of opportunity.
Lower fees. You pay for execution and technology, not brand overhead and marketing budgets.
The math is simple.
With SMAs, setup complexity happens once. But the lock-ups, fee drag, and lost control you experience with a fund structure compounds every single day your capital sits in.
Professional investors don't optimize for easy onboarding. They optimize for what happens over the next decade.
While SMAs are a bit complex to set up, they give investors complete control and oversight over their capital.
That's why we offer SMAs at autotradelab.
And Merry Christmas to all who celebrate today!
Not financial advice