Definition

Wrap account

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Often referred to as wrap service or tax wrapper, a wrap account aids in merging and managing an investor's financial plans and investment portfolio. These are helpful if individuals do not have time to invest on their own and aspire to have a money manager taking care of assets. The two variations of this account are mutual fund wrap account and traditional wrap account. A Wrap account is preferred over brokerage account because unlike a brokerage account that charges commissions for trading, a wrap account doesn’t include commissions and is thus, less expensive.