As we evaluate the cost of investments it’s important to note the difference between the expense ratio of mutual funds and ETFs and an advisers fee. While to the layperson, a fee of 1% on a managed stock portfolio would appear to be the same a 1% expense ratio on a no load mutual fund with no fee. Yes they both cost 1% but the difference is that the one percent mutual fund expense ratio comes off the top of the performance of the investments to pay the investment company (commonly referred to as a mutual fund company) where as the advisers fee comes off the bottom as an expense for management. Thus, the managed stock portfolio at 1% has the opportunity to perform better and produce greater returns, because there’s no expense ratio drag. Also, the better advisers in the industry will provide a lot more advice and ongoing counseling due to a relationship with the client whereas the no load mutual fund times does not. Of course, for the DIY investors, there are less expensive funds and stocks, but now the cost is the investors time, study and ability to manage. While some do this very well, most make mistakes that the advisors fee would more than compensate for. As mentioned before the better advisers coordinate the investment portfolio with all of the assets, goals and objectives’ of the client making for a holistic plan.