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Brokerage account - one fund?

In setting up a brokerage account, Quicken asks if I want one account per fund or all funds in one account, yet it provides no direction or advantages/disadvantages. Is there a link with this information?

Answers

  • SherlockSherlock SuperUser ✭✭✭✭✭
    If you haven't already, I suggest you review the guidance provided in the built-in Help documentation: press F1


    Quicken user since 1997
    Premier on Windows 10
  • ps56kps56k SuperUser ✭✭✭✭✭
    Also.... which Brokerage ?
    Sometimes you can tell by looking at your statement, and seeing if there is one overall account number for ALL your mutual fund holdings,
    OR - the brokerage creates an account number for each mutual fund holding.
    Quicken 2020 Deluxe - Subscription - Windows 10
  • gawwsgawws Member ✭✭
    Thanks all. I was really looking for some empirical thoughts. If one were to have multiple funds or multiple single issue equities or bonds, it would add a significant number of accounts. I just don't see a benefit to one fund per account unless I am missing something.
  • q_lurkerq_lurker SuperUser ✭✭✭✭✭
    Empirical thought:  I much prefer the multi-fund/account setup.  A primary reason becomes my Quicken management as I diversify holdings or change holdings either for better management or reduced fees. 

    If you have one-fund per account, every such change to to new fund requires a new account.  If your happy with the fund and it changes you from Class Expensive to Class Cheaper == new account.

    I've probably owned more than 50 funds over my Quicken life in various family accounts (personal investments, IRAs, 401ks, etc.) - maybe 8-10 accounts total.  If I had to have one account for each fund in each of those family accounts, it would have been a nightmare. 

    If the financial institution does require one fund per account, I believe there are some tricks to apply for fund class changes and the like that can ease the burden.       
  • SherlockSherlock SuperUser ✭✭✭✭✭
    Empirical thought:  The only reason to use a single mutual fund account is if the financial institution requires it.  Most don't.  Personally, I would probably change institutions.
    Quicken user since 1997
    Premier on Windows 10
  • NotACPANotACPA SuperUser ✭✭✭✭✭
    Further note that if you set up an account a being a "Single Mutual Fund" account ... the account can ONLY hold that ONE fund ... EVER.
    So, in @q_lurker's example, he'd have to have 50 different accounts ... most of which are now unused.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • ps56kps56k SuperUser ✭✭✭✭✭
    I have investments with  .... Schwab, Fidelity, TRowe, Vanguard
    TRowe is the only one that has, at least for me, the 1-1 Single Fund per Acct.
    Quicken 2020 Deluxe - Subscription - Windows 10
  • q_lurkerq_lurker SuperUser ✭✭✭✭✭
    NotACPA said:
    Further note that if you set up an account a being a "Single Mutual Fund" account ... the account can ONLY hold that ONE fund ... EVER.
    So, in @q_lurker's example, he'd have to have 50 different accounts ... most of which are now unused.
    Not to belabor the point, but it would actually be more than 50 accounts -- since the same fund might be held in His IRA, Her IRA, His Invest, Her Invest, etc.  I could imagine it growing to 250 accounts if those were all 1-fund/1-account setups.  Not going to happen in my file.

    To the other side of the coin, when a fund family like American requires the 1-fund to 1-account setup, that does not absolutely require the SMF Quicken setup.  That is, if the investor moves all of Fund A over to Fund B, I see no problem if the user does that in a standard account (a non-SMF account), and simply disables the connectivity of that Quicken account to American's Fund A and re-enables the connectivity of the Quicken account to American's Fund B.  That is, American is really saying they are going to send one fund data to one Quicken account.  I don't believe they have or exercise the means to confirm that said Quicken account is structurally an SMF account.  That still biases the setup the OP asked about away from a SMF designation.  
  • gawwsgawws Member ✭✭
    Thanks all. This is my first time posting on this forum and I am impressed with the response speed and content.
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