Vanguard, a US investment management company, is reportedly planning to begin offering customized investment advice and management for small investors, for less than a third of the typical cost.
Vanguard Group chairman, president and CEO William McNabb III told Consumer Reports.org that the company is planning a new program, Personal Advisor Services.
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McNabb added that the company would provide ongoing, one-on-one advice and portfolio management to its retail customers for 0.3 percent annually, or $3 for every $1,000 invested.
It is believed that the low-cost mutual fund giant will launch the new service within 12 to 18 months.
"You should be willing to pay for advice, but not too much," McNabb told the news portal, adding that investors should not pay total fund and advisory fees of more than 1 or 1.25%.
"We’ll give the advice for 30 basis points, and we’ll make it personalized," McNabb concluded.
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By GlobalDataA Vanguard spokesperson told Consumer Reports "comprehensive financial planning, ongoing portfolio management, access to financial advisors, and a highly personalized web experience.
"Advisors will help clients identify their goals, develop a plan, and stay on track to achieve their financial goals."
The US company, which is presently testing with a group of retail clients near retirement age, further explained that the service will be conducted through web, e-mail, phone, and videoconferencing.
