what is a wrap fee 
a wrap fee is an all inclusive charge for the services of an investment manager or investment advisor the wrap fee generally covers investment advice investment research brokerage services and administrative fees the fee is based on the assets in the account and generally ranges from 1 to 3 per year of the assets under management the wrap fee simplifies investing costs and makes them more predictable it may be a good option for an actively engaged investor who regularly demands the full services of an investment manager or advisor it could be less beneficial to an investor who is holding onto a portfolio of investments for the long term and does not intend to frequently alter it 