A separately managed account with a money manager such as Capital Ideas is often superior to a mutual fund for several reasons. For instance:

There Is No Forced Redemption of Your Holdings

During market declines, many mutual funds are forced to raise cash for customers wishing to redeem their shares. If forced to sell when the general market is down, a fund is most likely taking losses. In addition, the lack of cash within a fund as a result of these redemptions prevents mutual fund managers from purchasing quality investments at lower prices.

A Capital Ideas managed portfolio is yours and yours alone. You are unaffected by other investors’ bad timing decisions. Many times, instead of selling, Capital Ideas can increase your market share by purchasing quality investments when prices are less expensive.

Your Account Can Be Tax Managed

When you buy shares of a mutual fund, you also purchase any existing tax liability in that fund. For example, if you decided to buy shares of a mutual fund in November, you would be responsible for paying capital gains tax on the fund's entire year's worth of gains (from January to December), not just your personal gains realized since you joined the fund in November.

A personally managed account with Capital Ideas offers you several tax- related advantages over mutual funds. First, you pay taxes only on those gains realized in your personal portfolio. The investment activity of other Capital Ideas clients will not affect your tax liabilities. Secondly, Capital Ideas strives to reduce your capital gains taxes by selling issues that will produce offsetting capital losses. Because you may maintain direct contact with your account manager, tax oriented transactions can be timed to coincide with other taxable transactions taking place outside of your Capital Ideas account, thus maximizing your overall tax planning strategy.


In a mutual fund, you are typically one investor out of thousands. "Service" is normally nothing more than a statement in the mail. Capital Ideas offers much more!