Brokers and other money managers offer model portfolios to investors as an alternative to mutual funds but customize them according to individual wishes or needs.ADVANTAGES
Personal contact with portfolio managers. Better transparency, tax efficiency, and control over capital gains compared with mutual funds. Funds focus on 55 to 65 stocks.DISADVANTAGES
High account minimums, averaging $100,000. Steep annual expenses of up to 3% of portfolio value. Lack of objective ratings makes it difficult to compare managers' performance.